Careers at CONSOL Energy
CONSOL Energy’s mission is to power the nation with affordable, abundant, reliable domestic energy.
CONSOL Energy is an integrated energy company. The firm operates two reportable business segments:
- Exploration & Production (E&P) – Explores for, operates, and develops natural gas primarily in Appalachia (Pennsylvania, West Virginia, Ohio, Virginia, and Tennessee).
- Coal Mining – Focuses on the extraction and preparation of coal, also in the Appalachian Basin.
In 1860 several small mining companies in western Maryland decided to merge their operations. The result was Consolidation Coal Company, or CONSOL for short. In 1864 it was formally incorporated, and over the next few decades it contributed significantly to coal production in the region, which grew to one million short tons in 1865 and reached a high of six million short tons in 1907.
By 1927 CONSOL was the largest producer of bituminous coal in the eastern U.S. In 1945 it merged with Pittsburgh Coal Company and moved its headquarters to western Pennsylvania. In 1966 it was acquired by Continental Oil (Conoco). By the 1970s CONSOL maintained 56 mines and employed 19,000 miners. In 1981 it became a subsidiary of DuPont when the firm acquired Conoco.
In 1991 DuPont sold some of CONSOL’s interests to form a joint venture with Rheinbraun called CONSOL Energy. In 1998 DuPont sold most of its stake in CONSOL, leaving Rheinbraun with a 94% interest. In 1999, CONSOL filed an initial public offering to pay off some of the debt it garnered from DuPont’s buy-out. In the decade that followed it embraced diversification, largely into natural gas.
Benefits at CONSOL Energy
Business model of CONSOL Energy
CONSOL has a niche market business model, with a specialized customer segment. The company targets its offerings at electric generators and steelmakers.
CONSOL offers two primary value propositions: innovation and brand/status.
The company embraces innovation in its everyday processes. Its energy coal operations utilize longwall mining systems in underground mines. These systems enable increased production by providing continuous mining machines that enhance access for miners and equipment.
The company has established a strong brand due to its success. It is one of the largest independent natural gas exploration, development, and production companies in the world. As of December 2015, it had 5.6 trillion cubic feet equivalent of proved natural gas reserves and almost 13,000 net producing wells. In 2015 alone, it presided over an average production of 900,430 Mcfe per day, an increase of 39% over 2014. It is a member of the Standard & Poor's Midcap 400 Index.
Lastly, it has won a number of honors, including recognition as Operator of the Year by the Virginia Department of Mines and Minerals and the Energy-Virginia Oil and Gas Association in 2016.
CONSOL’s main channel is its direct sales team. The company promotes its offering through its website and social media pages.
CONSOL’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees.
CONSOL’s business model entails exploring, developing, and producing its energy products for customers.
CONSOL’s key partners are the suppliers that provide it with the equipment and materials it needs to conduct its operations. The company is also a member of two strategic joint ventures:
- CONSOL has a joint venture in the Marcellus Shale that requires Noble Energy to pay a part of its qualifying drilling and completion costs in certain situations
- CONSOL has a joint venture in the Utica Shale with a subsidiary of Hess Corporation
CONSOL’s main resources are its physical resources, the most important being its 5.6 trillion cubic feet equivalent of proved natural gas reserves (3.7 trillion developed, 1.9 trillion undeveloped). It also operates the largest private research and development facility in the U.S. dedicated to coal and energy utilization and production.
Moreover, it has important human resources in the form of miners and transportation specialists who negotiate freight and equipment agreements with transportation suppliers, including railroads, barge lines, terminal operators, and trucking companies.
CONSOL has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of coal sold, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed expenses.
CONSOL has two revenue streams: revenues generated from sales of its products (energy and equipment) to its customers and from sales of various services (e.g., land services, water services, and coal terminal services). Sales typically occur through the signing of contracts.
info: Nicholas J. DeIuliis earned a Bachelor's degree in Chemical Engineering at Pennsylvania State University and an MBA and JD at Duquesne University. He previously held several positions at CONSOL, including Chief Operating Officer and SVP of Strategic Planning.
info: David Khani earned an MBA at the University of Rochester. He previously served as Vice President of Finance at CONSOL, as Director of Research at FBR Capital Markets, and as the Managing Director of FBR’s Energy and Natural Resources Group
info: Jimmy Brock earned a degree in Geological Engineering at Eastern Kentucky University. He previously held several leadership roles at CONSOL, including SVP of Northern Appalachia Operations and Vice President of Northern West Virginia Operations.
info: Timothy C. Dugan earned a B.S. in Chemical Engineering at the University of Pittsburgh. He previously served as Vice President of Chesapeake Energy's Appalachia South Business Unit and worked at Cabot Oil and Gas Corporation.
Jobs at CONSOL Energy
602.000+ job opportunitiesStart here!