CONSOL Energy, Inc. history, profile and corporate video
CONSOL Energy, Inc. produces coal and natural gas for global energy and raw material markets, which include the electric power generation industry and the steelmaking industry. The company operates its business through two principal business divisions: Coal and Gas. The Coal division’s principal activities are mining, preparation and marketing of steam coal, sold primarily to power generators and metallurgical coal, sold to metal and coke producers. The Coal division includes four reportable segments: Thermal, Low Volatile Metallurgical, High Volatile Metallurgical and Other Coal. The Thermal aggregated segment includes the following mines: Bailey, Blacksville #2, Enlow Fork, Fola Complex, Loveridge, McElroy, Miller Creek Complex, Robinson Run and Shoemaker. The Low Volatile Metallurgical aggregated segment includes the Buchanan Mine and the Amonate Complex. The High Volatile Metallurgical aggregated segment includes: Bailey, Blacksville #2, Enlow Fork, Fola Complex, Loveridge and Robinson Run coal sales. The Other Coal segment includes purchased coal activities, idled mine activities, as well as various other activities assigned to the coal segment but not allocated to each individual mine. The principal activity of the Gas division is to produce pipeline quality methane gas for sale primarily to gas wholesalers. The Gas division includes four reportable segments which include Coalbed Methane, Marcellus, Shallow Oil & Gas and Other Gas. The Other Gas segment includes its purchased gas activities as well as various other activities assigned to the gas division but not allocated to each individual well type. CONSOL Energy’s all other segment includes terminal services, river and dock services, industrial supply services and other business activities. The company was founded in 1860 and is headquartered in Canonsburg, PA.“
“CONSOL Energy History
Consolidation Coal Company (1860–1991)
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.
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.
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. By the mid-1970s, Consolidation Coal Company operated 56 mines and employed nearly 20,000 miners. 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.
Consol Energy (1991-present)
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. 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. 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. Consol also acquired Rochester & Pittsburgh Coal Company in 1998.
In 1999, Consol underwent a public offering (NYSE: CNX) 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. In 2001, Consol acquired Conoco Inc.’s coalbed methane gas production assets in southwestern Virginia.
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. On June 28, 2006,Consol Energy entered the S&P 500 replacingKnight-Ridder. 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.
In 2010 Consol was also named by Forbes magazine as one of the “100 Most Trustworthy Companies.” in 2011, Consol entered into two separate joint venture agreements to expedite its natural gas production. The first, an agreement with Noble Energy, Inc. will jointly develop the company’s 663,350 Marcellus Shale acres in Pennsylvania and West Virginia.The second joint agreement, with Hess Corporation, will jointly explore and develop Consol’s nearly 200,000 Utica Shale acres in Ohio. Consol also began an expansion of its Baltimore Terminal in 2011 to increase capacity from 14 million to 16 millions tons to increase its revenue from sales of its metallurgical coal.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “GK Visual“