Gas and coal producer Consol Energy cuts spending as oil prices fall; shares fall

IndustriesAssociated Press

Consol Energy is trimming the amount of money it spends on buying and developing land for oil production, joining other energy companies that are reducing spending due to falling oil prices.

The natural gas and coal producer said Friday that it lowered its capital spending budget to $920 million, down $80 million from its previously announced budget of $1 billion. Consol also said it plans to reduce its operational costs, but didn't say by how much.

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Shares of Consol Energy Inc., based in Canonsburg, Pa., fell $1.34, or 4.8 percent, to $26.27 in afternoon trading.

Several energy companies, including Chevron Corp. and Exxon Mobil Corp., have trimmed their spending after oil prices plunged. Oil prices have fallen as production in the U.S. increased, outweighing demand.