Jul 20, 2015 1 min read

Consol Energy Inc. said Monday it expects to report a second-quarter loss from operations, primarily because of lower commodity prices.

Southpointe-based Consol, which is scheduled to report its second-quarter financial performance July 28, said in a news release it expects to achieve previous quarter total production guidance for both the oil and gas exploration and production and coal divisions.

Separate from the operating loss, the company said it expects to record a significant impairment charge because of the reduction in the carrying value of its conventional shallow oil and natural gas assets, largely resulting from a continuation of depressed NYMEX forward prices.

Consol said the impairment charge is a noncash item that will not affect its reserves, Marcellus and Utica Shale segments, or net asset value. Also, the impairment will lower depreciation, depletion and amortization moving forward.

Finally, in the second-quarter earning’s release and call, CONSOL expects to discuss its plan to generate free cash flow over the next 18-months, beginning in the second half of 2015, while maintaining annual gas production guidance at 30 percent growth for 2015 and 20 percent for 2016.