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Monday, Oct 28
Consol Energy sells West Virginia assets in $3.5B deal
- Consol Energy (CNX) agrees to sell its Consolidation Coal Company subsidiary, which contains all five of its longwall coal mines in West Virginia, to a subsidiary of Murray Energy in a deal valued at $3.5B, which CNX calls a "transformative step" in advancing its E&P growth strategy.
- The mines being sold produced a combined 28.5M tons of thermal coal in 2012; CNX's river and dock operations, including a fleet of 21 towboats and 600 barges, are part of the transaction.
- CNX cuts its dividend in half to an annual rate of $0.25/share, which it says reflects the increased emphasis on growth.
- Says the deal will de-lever $2.4B in balance sheet liabilities, and expects to record ~$1.3B of pre-tax gain in Q4.
- CNX -1.9% premarket.