There has been a little nasty war going on between coal and natural gas for dominance in America’s energy pie. The hydraulic fracking boom has reduced natural gas prices, so utilities have favored the fuel type when it comes to electricity generation. However, coal has once again begun to regain ground as it is now cheap enough to replace some natural gas use.
This back-and-forth is enough to make your portfolio spin. But none of it matters to CONSOL Energy (CNX).
That’s because the firm produces both coal and natural gas. CONSOL’s coal operations span both thermal coal for power generation and metallurgical coal for use in the production of steel, while it produces natural gas in the Marcellus and Utica shales. That makes it a prime way to play the future of energy production here in the U.S.
Perhaps more importantly, CNX’s energy operations are some of the most cost-effective. That focus on efficiency and cost could be why BP Capital expanded its position in the firm by 213%. Investors might want to follow suit as CONSOL continues to be beaten down by the general hate for coal, despite its natural gas assets.