CONSOL Energy Inc. (NYSE: CNX) reported third-quarter 2014 results before markets opened Tuesday. The coal miner posted adjusted diluted earnings per share (EPS) of $0.09 on revenues of $884.62 million. In the same period a year ago, the company reported an EPS loss of $0.23 on revenues of $803.35 million. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.19 and $889.06 million in revenues.

Arch Coal Inc. (NYSE: ACI) also reported its third-quarter results before markets opened. The coal miner posted an adjusted diluted EPS loss of $0.45 on revenues of $742.2 million. In the same period a year ago, the company reported an EPS loss of $0.38 on revenues of $791.3 million. The consensus estimates for the third quarter had called for an EPS loss of $0.41 and $719.33 million in revenues.

Since none of that represents a solid win for either company, let’s look at what the two companies expect for the fourth quarter and the full year. CONSOL expects natural gas production of 235 billion to 240 billion cubic feet equivalent in 2014 and further expects that total to grow by 30% in each of the next two years. The company also expects volumes and prices to improve slightly for its low-volatility coal this year and remain unchanged for next year. Thermal coal guidance remains unchanged. In the third quarter, CONSOL’s average margin on low-vol coal dropped by more than half and per-ton margin on thermal coal dropped by almost 30%.

Arch expects its previous full-year estimates of 124 million to 130 million tons of thermal coal sales and 6.3 million to 6.9 million tons of metallurgical coal sales to be met. Cash costs in its Appalachian mines are expected to average more than the price the company receives for a ton of thermal coal, although the region’s met coal price more than makes up the difference. Margins in the third quarter dropped from $7.00 a ton in the prior quarter to $2.35 a ton.

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Arch Coal’s CEO said:

[O]ur western thermal operations improved cash margins per ton versus the second quarter due to increased shipment levels, higher price realizations and continued strong cost control. … Looking ahead, we expect our western thermal operations, particularly in the Powder River Basin, to benefit from incrementally improving rail service in the fourth quarter of 2014 and in 2015.

CONSOL’s CEO added:

Our ability to contract in a soft market [for coal] confirms what we previously highlighted: electricity generators value the characteristics of CONSOL’s thermal coal, which is among the highest heat content of any U.S. thermal coal. CONSOL is also positioned to benefit from its proximity to customers, history of reliability, and its strong financial metrics. Over time, we have targeted “must run” base load generation, and this strategy has further enhanced the value of our premium thermal coal.

Arch Coal’s stock traded up more than 6% in the premarket session, at $1.90 in a 52-week range of $1.35 to $5.37. The revenue beat is likely responsible for the optimism. Thomson Reuters had a consensus analyst price target of around $2.90 before the report.

CONSOL shares were inactive in premarket trading, having closed down 1.3% on Monday at $34.23, in a 52-week range of $31.64 to $48.30. Thomson Reuters had a consensus analyst price target of around $5.10 before the report.

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