Market Overview

CONSOL Energy Bolsters Water Division to Market Resources and Capabilities; Acquires an Equity Interest in Epiphany Solar Water Systems

CONSOL Energy Inc. (NYSE: CNX), the leading diversified fuel producer headquartered in the Eastern U.S., today announced that it is taking steps to formalize its current water operations into a vertically integrated Water Division that will market the company's extensive water resources as well as its water treatment and management expertise.

"Given our extensive water assets and successful water management experience, we believe we have a valuable service to offer to the natural gas industry's growing need for water resources. Our fresh water and acid mine drainage (AMD) sources are strategically located in the fairway of the Marcellus Shale and can serve as a reliable source of water supply for gas producers whose operations are constrained because of water withdrawal restrictions during certain dry periods," commented Nicholas J. DeIuliis, president of CONSOL Energy. "CONSOL Energy treats over 36 billion gallons of water per year. We are currently testing use of this water in our own drilling and well operations and are negotiating AMD off-take agreements with several leading gas operators who see the value of a reliable water supply."

CONSOL Energy is also completing construction of a second state-of-the-art Reverse Osmosis Zero Liquid Discharge water treatment plant in northern West Virginia. This facility will serve as a water source for the company and possibly as a water source for third parties. In addition, the company is exploring the potential of the facility to treat Marcellus Shale flowback water.

CONSOL Energy also announced that it acquired a minority equity interest in Epiphany Solar Water Systems, a privately-held company founded in New Castle, PA in 2009 that has invented the world's first concentrated solar powered water purification system. Under the agreement, CONSOL Energy has made an initial investment of $500,000 and one of its Marcellus gas well locations in Greene County will serve as the site to pilot test this solar powered water purification system.

Posted-In: News M&A

 

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