Wikipedia

Consol Energy

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

Consol Energy Inc./kənˈsɒl/is an American energy company with interests incoalheadquartered in the suburb ofCecil Township,in theSouthpointecomplex, just outsidePittsburgh,Pennsylvania.[4]In 2017, Consol formed two separate entities:CNX ResourcesCorporation 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-BTUbituminous coalin 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 600component[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

History

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Consolidation Coal Company (1860–1991)

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Table of Cumberland Coal Trade Production 1865

Consol Energy was originally created in 1860 as the Consolidation Coal Company after several small mining companies inWestern Marylanddecided to combine their operations. The company was formally established in 1864 and headquartered inCumberland, Marylandfor the first 85 years (1864–1945), where the company became the largestbituminous coalcompany 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 inblacksmith) that was specially processed and delivered inboxcarsto customers throughout the United States and Canada. In 1945, Consolidation Coal Company was merged withPittsburgh Coal Companyand its headquarters were moved toWestern Pennsylvania. [9]

With growing demand for natural gas in the U.S. followingWorld War II,Consolidation Coal Company was acquired by theContinental 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 byDuPont,which then sold some of its coal mining interests in Pennsylvania to the German energy company, Rheinbraun A.G.[9]

Consol Energy (1991–present)

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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 acquiredRochester & Pittsburgh Coal Companyin 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 theS&P 500replacingKnight-Ridder.[17]In 2007, CNX Gas also began investing heavily in natural gas exploration in theMarcellus Shalein Pennsylvania. In 2010, Consol acquiredDominion 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 byForbesmagazine 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 withNoble Energywas to jointly develop the company's 663,350 Marcellus Shale acres in Pennsylvania and West Virginia.[19]The second joint agreement, withHess Corporation,jointly explored and developed Consol's nearly 200,000Utica Shaleacres 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 itsmetallurgical 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 ofinjecting CO2into geologic formations.[citation needed]

Operations and financials

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Divisions and areas of business

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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 ofhydraulic fracturing.The company operatesreverse osmosiswater 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

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In 2018, Consol Energy had an annual revenue of $1.53 billion.[28]Consol Energy was ranked number 428 on theFortune 500list 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

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Boat formerly operated by Consol Energy passing downtownPittsburgh,PA.

Environmental record

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In September 2009, several thousand fish were killed inDunkard 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, theenvironmental impact of coalmining 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 includingDucks Unlimitedand theNational Wild Turkey Federationon habitat restoration efforts.[36]

Political involvement

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An ad by theNational Rifle Association of Americacritical of PresidentBarack Obamathat 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 yourSecond Amendmentrights taken away if Obama becomes president. "Word spread among pro-Obama miners who contacted their union, theUnited 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

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Consol Energy has previously put its name to two sports facilities in its Pittsburgh-area. In 2007, Consol Energy purchased the naming rights toWashington, Pennsylvania's minor league baseball team theWashington 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 theConsol Energy Centerin 2008; the arena that hosts thePittsburgh PenguinsNational Hockey Leagueteam.[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 2016the Consol Energy Center has been renamed PPG Paints Arena as Consol Energy has ended its naming rights of the venue.[44]

See also

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References

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  1. ^"CONSOL Energy (new) and PDF Solutions Set to Join S&P SmallCap 600"(Press release). 2017-11-21.Retrieved2018-04-22.
  2. ^"CONSOL Energy Governance".CONSOL Energy. 2011. Archived fromthe originalon 2004-08-21.Retrieved2011-10-28.
  3. ^"Consol Energy Fortune".Fortune.RetrievedNovember 11,2024.
  4. ^"Consol Energy Inc".Hoovers.Retrieved2011-12-14.
  5. ^abc"CNX Resources, CONSOL Energy Begin to Trade Post Spin-Off".Nasdaq.30 November 2017.
  6. ^"2010 10-K, Consol Energy".Consol Energy Inc.Retrieved2011-12-12.[permanent dead link‍]
  7. ^"• Consol Energy number of employees 2009-2018 | Statistic".2019-04-18. Archived fromthe originalon 2019-04-18.Retrieved2024-01-31.
  8. ^abc"CONSOL Energy Inc".Funding Universe.Retrieved2011-12-20.
  9. ^abcPederson, Jay (2004).International directory of company histories, Volume 59.St. James Press. p. 135.ISBN9781558625044.
  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 fromthe originalon 2012-07-17.Retrieved2011-12-20.
  14. ^"CONSOL Energy acquires several Va. production properties".Pittsburgh Business Times.31 January 2000.Retrieved23 March2020.
  15. ^"Consol to acquire CBM site".Gas Daily.18(161). 2001-08-21.
  16. ^abGreen, Elwin (2010-03-16)."Consol in $3.5B gas deal".Pittsburgh Post Gazette.Retrieved2011-12-20.
  17. ^"S&P 500 Hot Stocks: CONSOL Energy Joins the SPX".Schaeffer's Investment Research. June 28, 2006.RetrievedJuly 8,2010.[dead link‍]
  18. ^Coster, Helen (2010-04-05)."The 100 Most Trustworthy Companies".Forbes.Archived fromthe originalon April 9, 2010.Retrieved2011-12-20.
  19. ^Puko, Timothy (2011-08-18)."Consol Energy selling half its Marcellus rights for $3.4B".Pittsburgh Tribune-Review.Archived fromthe originalon 2012-09-10.Retrieved2011-12-20.
  20. ^"Consol sells Utica Shale rights in Ohio for $593M".The Associated Press.9 July 2011. Archived fromthe originalon November 27, 2011.Retrieved2011-12-20.
  21. ^Schwartzel, Erich (2011-12-25)."Coal's Power: Coal energy output outstrips gas, nuclear combined".Pittsburgh Post-Gazette.Retrieved2 March2012.
  22. ^"Excellence in Surface Coal Mining Reclamation Award Winners".Office of Surface Mining Reclamation and Enforcement.Retrieved1 October2012.
  23. ^"Factoring Invoices for Consol Energy".TCI Business Capital.Retrieved2019-04-27.
  24. ^Puko, Timothy (28 October 2013)."Consol selling 5 coal mines, river transport business in $3.5B deal".tribliveoffers.Retrieved2024-01-31.
  25. ^"What The Frack? Natural Gas Producer Buys Into Solar".AOL Energy. Archived fromthe originalon 2012-06-30.Retrieved11 July2012.
  26. ^"Consol Energy 2011 10-k".Consol Energy.Retrieved12 July2012.
  27. ^Kusic, Sam (2015-01-30)."Consol Energy sells Fairmont Supply subsidiary, forecasts production growth".Pittsburgh Business Times.Retrieved23 March2020.
  28. ^"CEIX | CONSOL Energy Inc. Annual Income Statement".MarketWatch.2024-01-31.Retrieved2024-01-31.
  29. ^"Fortune 500".Fortune. 23 May 2011. Archived fromthe originalon 12 February 2012.Retrieved12 April2017.
  30. ^Fortune Consol Energy|https://fortune /company/consol-energy13 November 2024|
  31. ^Adducchio, Ben (2010-04-20)."Dunkard Creek fish kill topic at Monongahela River Summit".WV Public Broadcasting.Archived fromthe originalon 2011-09-28.Retrieved23 January2012.
  32. ^Hopey, Dan (2009-12-21)."W.Va. OKs resumption of mine discharges in Dunkard Creek".Pittsburgh Post-Gazette.Archived fromthe originalon 2009-12-25.Retrieved23 January2012.
  33. ^Hopey, Dan (2011-03-15)."Consol to pay $5.5M for Clean Water Act violations".Pittsburgh Post-Gazette.Archived fromthe originalon 2011-11-24.Retrieved23 January2012.
  34. ^Junkins, Casey (2011-10-29)."Consol Sued for Dunkard Creek Fish Kill".The Wheeling News-Register.Archived fromthe originalon February 4, 2012.Retrieved23 January2012.
  35. ^"48 Individuals And Organizations Honored For Leadership And Innovation In Protecting The Climate And Stratospheric Ozone".Environmental Protection Agency.Archivedfrom the original on May 22, 2013.Retrieved23 January2012.
  36. ^"Clay County Mine Honored for Reforestation Efforts".The State Journal.2009-08-26. Archived fromthe originalon 2012-07-12.Retrieved23 January2012.
  37. ^Huber, Tim (2008-09-22)."UMW plans stoppage over NRA filming".USA Today.Archived fromthe originalon 2018-08-11.Retrieved2010-04-30.
  38. ^Greenhouse, Steven (2008-10-02)."Mine Workers Protest Anti-Obama Ad".The New York Times.Archivedfrom the original on 2008-10-05.Retrieved2010-04-30.
  39. ^"Coal Mining".Open Secrets.Retrieved23 March2020.
  40. ^Litvak, Anya (25 March 2011)."CONSOL lobbying wins and losses".Pittsburgh Business Times.Retrieved2019-04-27.
  41. ^Reynolds, Dan (9 April 2007)."CONSOL, Wild Things in naming rights deal".Pittsburgh Business Times.Retrieved2 July2012.
  42. ^Price, Karen (16 December 2008)."Pens assign naming rights to arena".Pittsburgh Tribune-Review.Archived fromthe originalon 2009-07-09.Retrieved16 December2008.
  43. ^"CONSOL Energy Acquires Naming Rights to New Pittsburgh Arena"(Press release). Pittsburgh Penguins. 2008-12-15. Archived fromthe originalon 2008-12-17.Retrieved2008-12-15.
  44. ^Simonich, Milan (December 16, 2008)."Consol wins naming rights for arena".Pittsburgh Post-Gazette.

Further reading

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  • Brugger,Maryland: A New Guide to the Old Line State,Johns Hopkins University 1999,ISBN0-8018-5980-8
  • Albert L. Feldstein,"Feldstein's Historic Coal Mining and Railroads of Allegany County, Maryland",Publisher Albert L. Feldstein, 2000,ISBN0-9701605-0-X(This book consists of 135 historicAllegany Countycoal 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 toConsol Energy.
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HAER−Historic American Engineering Record images of Consolidation Coal Company Mine No. 11, links
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