CNX Gas 3rd-quarter profit plunges 47 percent

PITTSBURGH (AP) — Natural gas producer CNX Gas Corp. said third-quarter earnings fell 47 percent, hurt by prolonged weakness in natural gas prices and slumping demand.

Despite rebounding crude oil prices and signs of an economic recovery, natural gas prices have remained at record lows as domestic natural gas storage levels have swelled and as the recession sapped demand for electricity and heat.

CNX's average price realized for gas was $6.25 per 1,000 cubic feet for the quarter, compared with $9.73 per 1,000 cubic feet in the same period last year.

Earnings for the three months ended Sept. 30 fell to $35.5 million, or 23 cents per share, compared with $67.4 million, or 45 cents per share, during the same period last year.

Analysts polled by Thomson Reuters estimated a profit of 27 cents per share, on average. Analysts typically exclude one-time items.

Revenue dropped 24 percent to $165.7 million from $216.9 million in the prior-year period. Analysts forecast an average revenue of $157 million.

In afternoon trading, shares of CNX Gas slid $1.80, or 5.1 percent, to $33.48.