CNX » Topics » Coal Contracting Activity

This excerpt taken from the CNX 8-K filed Oct 23, 2008.

Coal Contracting Activity

During the quarter, the company booked approximately 3.1 million tons of sales for delivery in 2009, bringing the total tons committed and priced to 58.0 million tons, or approximately 80 percent of the midpoint of production guidance.

“Recent deals for high-btu, Eastern steam coal and metallurgical coal for 2009 delivery continue to reflect a robust pricing environment,” Harvey said. “During the quarter we settled at a weighted average price of more than $100 per ton for steam coal. We also contracted metallurgical coal for prices in a range of $285 to $310 per short ton at the mine for 2009 delivery.”

At quarter end, CONSOL had between 9.5 and 13.5 million tons of coal un-priced for 2009, based on January 2008 production guidance for 2009, of which approximately 4.3 million tons is metallurgical grade coal. The metallurgical grade coal available for sale was reduced by approximately 550,000 tons of Northern Appalachian steam coal that was previously targeted for sale as a cross-over metallurgical product.

This excerpt taken from the CNX 8-K filed Jul 31, 2008.

Coal Contracting Activity

The company booked approximately 10 million tons of sales for delivery in 2009 during the quarter just ended. Approximately 65 percent of those sales were new contracts or existing contracts where price was reopened to market. The remainder of the tons primarily was in existing contracts that reopened for re-pricing but contained provisions that capped the amount of the price increase. Although the new price was higher than last year, the price was below the current market price.

“Pricing of our Pittsburgh 8 steam coal was in excess of $100 per ton with the exception of some very high sulfur product which we sold early in the period at a somewhat lower price,” Harvey said. “Central App steam coal volumes were sold at about $95 per ton and metallurgical coal sales were in the range of $235—$245 per short ton, though the volumes were much smaller than the steam coal volumes. We also booked more than a million tons of coal from Emery at prices over $50 – the highest price for Utah coal in a long time.”

CONSOL has between 12.5—16.5 million tons of coal un-priced for 2009, of which nearly 5 million tons is low-volatile and high-volatile metallurgical grade coal, and has between 40.0—44.0 million tons of coal that is un-priced for 2010, with approximately 6 million tons of metallurgical grade coal.

EXCERPTS ON THIS PAGE:

8-K
Oct 23, 2008
8-K
Jul 31, 2008
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