TORONTO (miningweekly.com) – US fossil fuels producer Consol Energy’s NYSE-listed stock on Tuesday climbed with as much as $2.23 apiece after the company reported that it had swung to a first-quarter profit, as sales growth in its gas exploration and production (E&P) and oil divisions outpaced that of coal.

Consol Energy last year sold five Appalachian coal mines to Murray Energy in a transformative deal worth $3.5-billion – one  of the biggest transactions in recent years in the coal sector – as the company was repositioning itself to take advantage of the booming US shale gas industry.

The company had previously indicated that it expected to ramp up its gas output in 2014, and indeed, during the first quarter ended March 31, the gas and oil division sales grew by 59%, while coal sales declined 2% in the period.

Consol reported a net profit of $116-million, or $0.50 a share, compared with a loss of $1.8-million, or $0.01 a share in the same quarter a year earlier.

Revenue climbed 15% to $969.2-million, and costs fell 1% to $839-million.

Wall Street analysts on average expected adjusted earnings of $0.19 a share on revenue of $890-million.

The E&P division grew output by 23% to 48.4 billion cubic feet equivalent (Bcfe) in the quarter. Within this growth, higher-margin Marcellus shale output rose 94% to 20.7 Bcfe. As a result of the Marcellus growth, rising gas prices, and rising liquids output, all-in unit margins increased 145% to $1.89/Mcfe from $0.77/Mcfe in the year-earlier quarter.

Coal output in the quarter consisted of 1.1-million tons of low-volatility coal, 500 000 t of high-volatility coal and 6.5-million tons of thermal coal, for a total of 8.1-million tons. Of the thermal coal production, six-million tons were from Northern Appalachia and 500 000 t were from Central Appalachia.

Consol said that it expects to see strong coal and gas demand and increased pricing through 2014 and into 2015.

Last month, Consol announced that president Nicholas DeIuliis would assume the position of CEO following current CEO Brett Harvey’s appointment as executive chairperson.

These changes would become effective immediately after the company’s annual shareholder meeting on May 7.

During Harvey’s 15-year stint as the company’s headman, he had transformed the 150-year-old company by significantly expanding its coal business and by acquiring an E&P business, through which the company intends to reduce its exposure to the soft coal market.

On Tuesday afternoon, Consol’s stock traded up 4.70% or $1.97, at $43.92 apiece.