CNX Gas Corporation (NYSE:CXG) reported this morning that it is producing 6.5 million cubic feet of natural gas production from a well in the Marcellus Shale. The well represents CNX’s highest daily production rate of any well in the company’s history.
CNX owns a 100% interest in the well and 100% of the net revenue. Theproduced gas will probably be priced at a premium to NYMEX pricesbecause of its proximity to large consumers in the northeast.
The company also raised its production guidance by 1 million cubicfeet/day, to 75 billion cubic feet. CNX’s share price does not reflectthe news. It’s down just over 1% in mid-day trading. Until commodityenergy prices rise, no news from producers is good enough.
December 15, 2008