Wikipedia

Consol Energy

"Consolidation Coal Company" redirects here. For the unrelated company that formerly operated under the same name in Iowa, see Consolidation Coal Company (Iowa).

Consol Energy Inc. /kənˈsɒl/ is an American energy company with interests in coal headquartered in the suburb of Cecil Township, in the Southpointe complex, just outside Pittsburgh, Pennsylvania.[4] In 2017, Consol formed two separate entities: CNX Resources Corporation and CONSOL Energy Inc. While CNX Resources Corp. focuses on natural gas, spin-off Consol Mining Corporation, now Consol Energy Inc.[5] focuses on coal. In 2010, Consol was the leading producer of high-BTU bituminous coal in the United States and the U.S.'s largest underground coal mining company.[6] The company employs more than 1,600 people.[7]

Consol Energy
Company typePublic
NYSE: CEIX
S&P 600 component[1]
IndustryCoal mining, Natural Gas Production
Founded1864; 160 years ago (1864)
Headquarters
Cecil Township, Pennsylvania
,
U.S.
Key people
  • William P. Powell, Chairman
  • Jimmy A. Brock, President & CEO
  • Mitesh B. Thakkar, Chief Financial Officer
  • Kurt R. Salvatori, Chief Administrative Officer & Executive VP
  • Martha A. Weigand, General Counsel and Secretary[2]
ProductsCoal
ServicesTransportation
RevenueIncreaseUS$2.042 billion (2024) [3]
Number of employees
1,692 [1]
Websiteconsolenergy.com

History

edit

Consolidation Coal Company (1860–1991)

edit
 
Table of Cumberland Coal Trade Production 1865

Consol Energy was originally created in 1860 as the Consolidation Coal Company after several small mining companies in Western Maryland decided to combine their operations. The company was formally established in 1864 and headquartered in Cumberland, Maryland for the first 85 years (1864–1945), where the company became the largest bituminous coal company in the eastern United States.[8]

Western Maryland's coal production rose about 1 million short tons in 1865, exceeded 4 million short tons by the turn of the century, and reached an all-time high of about 6 million short tons in 1907. A small amount of the coal production in the early 1900s was premium smithing coal (as in blacksmith) that was specially processed and delivered in boxcars to customers throughout the United States and Canada. In 1945, Consolidation Coal Company was merged with Pittsburgh Coal Company and its headquarters were moved to Western Pennsylvania. [9]

With growing demand for natural gas in the U.S. following World War II, Consolidation Coal Company was acquired by the Continental Oil Company, or Conoco, in 1966.[9] By the mid-1970s, Consolidation Coal Company operated 56 mines and employed nearly 20,000 miners.[8] In 1981, Conoco along with Consolidation Coal Company was acquired by DuPont, which then sold some of its coal mining interests in Pennsylvania to the German energy company, Rheinbraun A.G.[9]

Consol Energy (1991–present)

edit

Looking to invest in coal reserves in North America, Rheinbraun A.G offered Dupont stakes in coal mines and $890 million in 1991 to join in an equal part joint venture creating Consol Energy.[10] Despite the cost of coal dropping in the 1990s, Consol's long-term contracts and investments in longwall mining techniques allowed the company to remain competitive.[8] In 1998, Dupont sold the large majority of its stake in Consol, leaving it with only a 6 percent share and Rheinbraun A.G with a 94 percent interest.[11] Consol also acquired Rochester & Pittsburgh Coal Company in 1998.[12]

In 1999, Consol underwent a public offering (NYSE: CNX)[13] in order to pay down some of the debt the company had incurred with the majority buy-out from Dupont and the acquisition of Rochester & Pittsburgh Coal Company. Due to uncertainty surrounding demand for coal in the early 2000s, Consol began to place a greater emphasis on diversification, primarily into natural gas. Consol's first major natural gas investment was through the acquisition of MCN Energy Group Inc.'s methane reserves in southwestern Virginia for $160 million.[14] In 2001, Consol acquired Conoco Inc.'s coalbed methane gas production assets in southwestern Virginia.[15]

Consol subsidiaries CNX Ventures and CNX Land Resources also began diversification efforts during this time into methane gas and timber and farming. In 2006, Consol spun off its subsidiary CNX Gas as a standalone company, but retained 83 percent of the new company's shares.[16] On June 28, 2006, Consol Energy entered the S&P 500 replacing Knight-Ridder.[17] In 2007, CNX Gas also began investing heavily in natural gas exploration in the Marcellus Shale in Pennsylvania. In 2010, Consol acquired Dominion Resources Inc.'s natural gas production and exploration assets for 3.74 billion dollars, which included nearly 500,000 acres of Marcellus potential, tripling Consol's position in the Marcellus to approximately 750,000 acres. Consol also acquired all of the remaining publicly owned shares of CNX Gas for a cash payment of $991 million.[16]

In 2010, Consol was also named by Forbes magazine as one of the "100 Most Trustworthy Companies."[18] In 2011, Consol entered into two separate joint venture agreements to expedite its natural gas production. The first, an agreement with Noble Energy was to jointly develop the company's 663,350 Marcellus Shale acres in Pennsylvania and West Virginia.[19] The second joint agreement, with Hess Corporation, jointly explored and developed Consol's nearly 200,000 Utica Shale acres in Ohio.[20] Consol also began an expansion of its Baltimore Terminal in 2011 to increase capacity from 14 million to 16 million tons to increase its revenue from sales of its metallurgical coal.[21]

In 2017, Consol Energy Inc. spun off from CNX Resources Group. Officially announced on November 29, 2017, this move marked the start of Consol Energy Inc. operating as an independent, publicly traded company.[5]

In 2012 Consol began a test of injecting CO2 into geologic formations.[citation needed]

Operations and financials

edit

Divisions and areas of business

edit

Consol Energy operates as a producer of coal, primarily for electric power generation. Consol also maintains support services including Baltimore Marine Terminal and Land Division.

Consol Energy's flagship operation is the Pennsylvania Mining Complex, which includes three large underground mines capable of producing approximately 28.5 million tons of coal per year. Consol's coal division[5] received the U.S. Department of the Interior's Office of Surface Mining National Award for Excellence in Surface Mining for the company's innovative reclamation practices in 2002, 2003, and 2004.[22]

Consol's Gas Division deals with natural gas exploration, development and production, producing nearly 128 billion cubic feet of coalbed methane in 2010. With the acquisition of the exploration and production business of Dominion Resources in 2010, the company has access to over 3.7 trillion cubic feet of proved clean-burning natural gas reserves in Pennsylvania, West Virginia and Ohio, including coalbed methane and shale beds. The company currently has nearly 13,000 net producing wells.[23]

As the owner of more than 430,000 surface acres in the U.S. and Canada, Consol Energy has a Land Division that oversees various projects, including selling reserve land that the company does not develop, land donation and conservation projects. Consol Energy has also been recognized for its reclamation efforts by national and state governments and has worked in partnership with several conservation groups on land reclamation projects.[24] Consol's Baltimore Marine Terminal provides coal transshipment services from rail cars to ocean transport ships.

Consol's Water Division is involved in water purification with a focus on treating wastewater produced as a byproduct of hydraulic fracturing. The company operates reverse osmosis water purification plants and has a minority interest in a company that develops solar-powered water purification systems which, as of July 2012, was conducting a pilot test at one of Consol's gas drilling sites.[25][26] Consol also maintained the Fairmont Supply Company, dedicated to the sale and distribution of mining services and equipment. However, in 2015, Consol sold that Company. Additionally, the company operates the largest privately owned research and development facility in the industry that is devoted exclusively to coal and energy utilization and production.[27]

Financials

edit

In 2018, Consol Energy had an annual revenue of $1.53 billion.[28] Consol Energy was ranked number 428 on the Fortune 500 list in 2011.[29] In 2024,Consol Energy had a revenue of 2.042 billion $ and was ranked 980 in the Fortune 1000.[30]

Corporate responsibility

edit
 
Boat formerly operated by Consol Energy passing downtown Pittsburgh, PA.

Environmental record

edit

In September 2009, several thousand fish were killed in Dunkard Creek, Monongalia County, West Virginia. While state officials attributed the fish kill to a golden algae bloom, an investigation by the Environmental Protection Agency claimed that mining discharges from Consol Energy's Blacksville No. 2 mine created the conditions for the golden algae bloom.[31] After halting operations at the mine following the fish kill, Consol was allowed to continue mining operations after coming to an agreement with the West Virginia Department of Environmental Protection to submit a proposal for discharge treatment plants by April 15 of 2010.[32] Consol also invested $200 million in a water treatment facility and paid a $5.5 million federal penalty to the U.S. Department of Justice and half to the West Virginia Department of Environmental Protection in 2011.[33] The company maintains that it was never found liable for the fish kill.[34]

As a producer of coal and natural gas, the environmental impact of coal mining and natural gas drilling has been a subject of controversy for Consol Energy. Despite this, the company has been recognized for its efforts at environmental protection and was awarded the U.S. Environmental Protection Agency Climate Protection Award in 2002.[35] Additionally, Consol maintains ongoing environmental efforts aimed at restoring and enhancing property managed by the company and has worked with conservation groups including Ducks Unlimited and the National Wild Turkey Federation on habitat restoration efforts.[36]

Political involvement

edit

An ad by the National Rifle Association of America critical of President Barack Obama that was filmed on Consol's Blacksville No. 2 coal mine in West Virginia became an issue of political debate in 2009.[37] The National Rifle Association intended to ask miners the question "How do you feel about having your Second Amendment rights taken away if Obama becomes president." Word spread among pro-Obama miners who contacted their union, the United Mine Workers of America, resulting in 440 miners taking the day off to avoid appearing in the ad in a contract-sanctioned protest, halting production at Consol's Blacksville No. 2 coal mine.[38]

Lobbying efforts on the part of Consol have also been an issue of controversy. In the first quarter of 2010, Consol spent $1.02 million in lobbying expenses on issues relating to the coal mining and natural gas industries.[39] Furthermore, in all of 2010, Consol spent $3.25 million in lobbying expenditures.[40]

Naming rights

edit

Consol Energy has previously put its name to two sports facilities in its Pittsburgh-area. In 2007, Consol Energy purchased the naming rights to Washington, Pennsylvania's minor league baseball team the Washington Wild Things' field, Consol Energy Park.[41] Consol Energy has let the naming rights deal expire as of January 2017.

Consol later purchased the naming rights to the Consol Energy Center in 2008; the arena that hosts the Pittsburgh Penguins National Hockey League team.[42][43] It is estimated that Consol Energy won the bid for naming rights at a cost between $2.0 - $4.0 million per year, for 21 years. As of October 2016 the Consol Energy Center has been renamed PPG Paints Arena as Consol Energy has ended its naming rights of the venue.[44]

See also

edit

References

edit
  1. ^ "CONSOL Energy (new) and PDF Solutions Set to Join S&P SmallCap 600" (Press release). 2017-11-21. Retrieved 2018-04-22.
  2. ^ "CONSOL Energy Governance". CONSOL Energy. 2011. Archived from the original on 2004-08-21. Retrieved 2011-10-28.
  3. ^ "Consol Energy Fortune". Fortune. Retrieved November 11, 2024.
  4. ^ "Consol Energy Inc". Hoovers. Retrieved 2011-12-14.
  5. ^ a b c "CNX Resources, CONSOL Energy Begin to Trade Post Spin-Off". Nasdaq. 30 November 2017.
  6. ^ "2010 10-K, Consol Energy". Consol Energy Inc. Retrieved 2011-12-12. [permanent dead link‍]
  7. ^ "• Consol Energy number of employees 2009-2018 | Statistic". 2019-04-18. Archived from the original on 2019-04-18. Retrieved 2024-01-31.
  8. ^ a b c "CONSOL Energy Inc". Funding Universe. Retrieved 2011-12-20.
  9. ^ a b c Pederson, Jay (2004). International directory of company histories, Volume 59. St. James Press. p. 135. ISBN 9781558625044.
  10. ^ "Du Pont To Sell Half Of Consol; Germany's Rheinbraun Creates Coal Giant". Coal Week. 17 (12): 1. 1991-03-25.
  11. ^ McKay, Jim (1998-09-18). "German Firm Taking Control Of Consol". Pittsburgh Post-Gazette.
  12. ^ "Consol Coal To Acquire R&P". Pittsburgh Post-Gazette. 1998-05-30.
  13. ^ "Consol Company Overview". Hoovers. Archived from the original on 2012-07-17. Retrieved 2011-12-20.
  14. ^ "CONSOL Energy acquires several Va. production properties". Pittsburgh Business Times. 31 January 2000. Retrieved 23 March 2020.
  15. ^ "Consol to acquire CBM site". Gas Daily. 18 (161). 2001-08-21.
  16. ^ a b Green, Elwin (2010-03-16). "Consol in $3.5B gas deal". Pittsburgh Post Gazette. Retrieved 2011-12-20.
  17. ^ "S&P 500 Hot Stocks: CONSOL Energy Joins the SPX". Schaeffer's Investment Research. June 28, 2006. Retrieved July 8, 2010. [dead link‍]
  18. ^ Coster, Helen (2010-04-05). "The 100 Most Trustworthy Companies". Forbes. Archived from the original on April 9, 2010. Retrieved 2011-12-20.
  19. ^ Puko, Timothy (2011-08-18). "Consol Energy selling half its Marcellus rights for $3.4B". Pittsburgh Tribune-Review. Archived from the original on 2012-09-10. Retrieved 2011-12-20.
  20. ^ "Consol sells Utica Shale rights in Ohio for $593M". The Associated Press. 9 July 2011. Archived from the original on November 27, 2011. Retrieved 2011-12-20.
  21. ^ Schwartzel, Erich (2011-12-25). "Coal's Power: Coal energy output outstrips gas, nuclear combined". Pittsburgh Post-Gazette. Retrieved 2 March 2012.
  22. ^ "Excellence in Surface Coal Mining Reclamation Award Winners". Office of Surface Mining Reclamation and Enforcement. Retrieved 1 October 2012.
  23. ^ "Factoring Invoices for Consol Energy". TCI Business Capital. Retrieved 2019-04-27.
  24. ^ Puko, Timothy (28 October 2013). "Consol selling 5 coal mines, river transport business in $3.5B deal". www.tribliveoffers.com. Retrieved 2024-01-31.
  25. ^ "What The Frack? Natural Gas Producer Buys Into Solar". AOL Energy. Archived from the original on 2012-06-30. Retrieved 11 July 2012.
  26. ^ "Consol Energy 2011 10-k". Consol Energy. Retrieved 12 July 2012.
  27. ^ Kusic, Sam (2015-01-30). "Consol Energy sells Fairmont Supply subsidiary, forecasts production growth". Pittsburgh Business Times. Retrieved 23 March 2020.
  28. ^ "CEIX | CONSOL Energy Inc. Annual Income Statement". MarketWatch. 2024-01-31. Retrieved 2024-01-31.
  29. ^ "Fortune 500". Fortune. 23 May 2011. Archived from the original on 12 February 2012. Retrieved 12 April 2017.
  30. ^ Fortune Consol Energy|https://fortune.com/company/consol-energy 13 November 2024|
  31. ^ Adducchio, Ben (2010-04-20). "Dunkard Creek fish kill topic at Monongahela River Summit". WV Public Broadcasting. Archived from the original on 2011-09-28. Retrieved 23 January 2012.
  32. ^ Hopey, Dan (2009-12-21). "W.Va. OKs resumption of mine discharges in Dunkard Creek". Pittsburgh Post-Gazette. Archived from the original on 2009-12-25. Retrieved 23 January 2012.
  33. ^ Hopey, Dan (2011-03-15). "Consol to pay $5.5M for Clean Water Act violations". Pittsburgh Post-Gazette. Archived from the original on 2011-11-24. Retrieved 23 January 2012.
  34. ^ Junkins, Casey (2011-10-29). "Consol Sued for Dunkard Creek Fish Kill". The Wheeling News-Register. Archived from the original on February 4, 2012. Retrieved 23 January 2012.
  35. ^ "48 Individuals And Organizations Honored For Leadership And Innovation In Protecting The Climate And Stratospheric Ozone". Environmental Protection Agency. Archived from the original on May 22, 2013. Retrieved 23 January 2012.
  36. ^ "Clay County Mine Honored for Reforestation Efforts". The State Journal. 2009-08-26. Archived from the original on 2012-07-12. Retrieved 23 January 2012.
  37. ^ Huber, Tim (2008-09-22). "UMW plans stoppage over NRA filming". USA Today. Archived from the original on 2018-08-11. Retrieved 2010-04-30.
  38. ^ Greenhouse, Steven (2008-10-02). "Mine Workers Protest Anti-Obama Ad". The New York Times. Archived from the original on 2008-10-05. Retrieved 2010-04-30.
  39. ^ "Coal Mining". Open Secrets. Retrieved 23 March 2020.
  40. ^ Litvak, Anya (25 March 2011). "CONSOL lobbying wins and losses". Pittsburgh Business Times. Retrieved 2019-04-27.
  41. ^ Reynolds, Dan (9 April 2007). "CONSOL, Wild Things in naming rights deal". Pittsburgh Business Times. Retrieved 2 July 2012.
  42. ^ Price, Karen (16 December 2008). "Pens assign naming rights to arena". Pittsburgh Tribune-Review. Archived from the original on 2009-07-09. Retrieved 16 December 2008.
  43. ^ "CONSOL Energy Acquires Naming Rights to New Pittsburgh Arena" (Press release). Pittsburgh Penguins. 2008-12-15. Archived from the original on 2008-12-17. Retrieved 2008-12-15.
  44. ^ Simonich, Milan (December 16, 2008). "Consol wins naming rights for arena". Pittsburgh Post-Gazette.

Further reading

edit
  • Brugger, Maryland: A New Guide to the Old Line State, Johns Hopkins University 1999, ISBN 0-8018-5980-8
  • Albert L. Feldstein, "Feldstein's Historic Coal Mining and Railroads of Allegany County, Maryland", Publisher Albert L. Feldstein, 2000, ISBN 0-9701605-0-X (This book consists of 135 historic Allegany County coal mining and railroad related photographs. These are primarily from the early 1900s. Accompanying each depiction is an historical narrative with facts, figures, dates and other information. Included within this number are 23 biographies of individuals associated with the history of coal mining in the region.)
 
Wikimedia Commons has media related to Consol Energy.
edit
HAER−Historic American Engineering Record images of Consolidation Coal Company Mine No. 11, links
Retrieved from "https://en.wiki.x.io/w/index.php?title=Consol_Energy&oldid=1257167296"