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Researched by Industrial Info Resources (Sugar Land, Texas)--CONSOL Energy Incorporated (NYSE:CNX) (Canonsburg, Pennsylvania) announced yesterday that the company's board of directors has approved a 2012 capital budget of $1.7 billion, up from $1.4 billion in 2011. The budget includes $755 million to be invested in coal mining projects and $720 million in gas production projects.
In the Gas Production sector, the company plans to spend approximately $595 million on projects in the Marcellus Shale, including $395 million for drilling. The company plans to spend most of the $50 million allocated to Utica Shale development on drilling programs as well. In its joint venture with Noble Energy Incorporated (NYSE:NBL) (Houston, Texas), CONSOL expects to drill 122 wells in the Marcellus play, including 39 in liquids-rich areas. CONSOL will have a share of up to 22 drilled wells, all in liquids-rich areas of the Utica Shale, in its joint venture with Hess Corporation (NYSE:HES) (New York, New York).
"Across all of the gas plays, the $755 million includes $519 of drilling capital, $124 million of gathering and compression capital, $30 million for production equipment, $26 million for water, and $23 million for land," CONSOL stated in a company press release. CONSOL estimates the investments will increase its 2012 gas production approximately 12% compared to last year. The company estimates 2012 production of 160 billion of cubic feet equivalent (Bcfe), compared to production of approximately 143.9 Bcfe in 2011. The company is aiming for 2013 production of between 200 and 220 Bcfe.
In the Coal Mining sector, CONSOL has allocated the $720 million in spending as follows:
Industrial Info is tracking more than $1 billion in active CONSOL Metals & Minerals Industry projects.
View Project Report - 300022294 200004880
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
In the Gas Production sector, the company plans to spend approximately $595 million on projects in the Marcellus Shale, including $395 million for drilling. The company plans to spend most of the $50 million allocated to Utica Shale development on drilling programs as well. In its joint venture with Noble Energy Incorporated (NYSE:NBL) (Houston, Texas), CONSOL expects to drill 122 wells in the Marcellus play, including 39 in liquids-rich areas. CONSOL will have a share of up to 22 drilled wells, all in liquids-rich areas of the Utica Shale, in its joint venture with Hess Corporation (NYSE:HES) (New York, New York).
"Across all of the gas plays, the $755 million includes $519 of drilling capital, $124 million of gathering and compression capital, $30 million for production equipment, $26 million for water, and $23 million for land," CONSOL stated in a company press release. CONSOL estimates the investments will increase its 2012 gas production approximately 12% compared to last year. The company estimates 2012 production of 160 billion of cubic feet equivalent (Bcfe), compared to production of approximately 143.9 Bcfe in 2011. The company is aiming for 2013 production of between 200 and 220 Bcfe.
In the Coal Mining sector, CONSOL has allocated the $720 million in spending as follows:
- $310 million for maintenance projects
- $205 million on projects to increase production
- $155 million on projects to improve efficiency
- $50 million for health and safety-related spending
Industrial Info is tracking more than $1 billion in active CONSOL Metals & Minerals Industry projects.
View Project Report - 300022294 200004880
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
