Value Pickings • 13 Comments
Wed, Nov. 16, 8:41 AM
- Cone Midstream Partners (NYSE:CNNX) agrees to acquire an additional 25% interest in Cone Midstream DevCo's pipeline systems, known as Anchor Systems, from joint owners Consol Energy (NYSE:CNX) and Noble Energy (NYSE:NBL) for $248M in cash and stock.
- Cone, an MLP formed by CNX, will own the entire group of assets after paying both CNX and NBL $70M in cash and 2.6M units.
- The assets include 125 miles of pipelines with 650M cf/day of capacity in the Marcellus Shale.
- CNNX expects the deal's anticipated increase in distributable cash flow will raise its future cash distribution coverage and enhance the ability to continue to grow quarterly cash distributions over time.
Mon, Oct. 3, 3:09 PM
- CNX Coal Resources (CNXC +4.8%) agrees to acquire an additional 5% interest in the Pennsylvania Mining Complex from Consol Energy (CNX +1.3%) for $88.8M, bringing its total ownership stake to 25%.
- The companies say the deal moves CNX a step closer to its goal of fully separating the coal and gas businesses, while strengthening CNXC's balance sheet and liquidity position.
- CNXC says it funded the deal with a combination of available borrowings under its credit facility and the issuance of convertible preferred units.
Oct. 28, 2013, 2:29 PM
- Investors' negative initial reaction to news that Consol Energy (CNX +0.9%) will sell five Appalachian coal mines for $3.5B to focus on natural gas turned positive as a consensus forms that the decision was a “positive for streamlining the company."
- “We’ll look at everything," CEO Brett Harvey said on a call with analysts but implied that a more radical break-up of the group was more likely to come after it realizes its ambitions for increasing gas production.
- CNX is selling ~28% of its coal EBITDA with the transaction, and the remaining coal has "optionality," allowing CNX to seek the highest margin; it is retaining the premium Buchanan mine, with 5M tons of production capacity, and the Western Allegheny joint venture, which is ramping to 1M tons of production capacity.
Oct. 28, 2013, 8:15 AM
- 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.
Oct. 18, 2013, 2:41 PM
- Consol Energy (CNX +0.6%) would be valued at as much as $50/share, 32% higher than yesterday's close, if it follows through on splitting its coal and natural gas businesses, Deutsche Bank and Raymond James say.
- Antero Resources (AR), a shale gas producer with similar acreage and reserve quality to CNX, made a strong trading debut last week, indicating there may be unrealized value in Consol, Brean Capital's Lucas Pipes says.
- CNX "holds tremendous long-term value, a substantial amount of which is locked up within" the gas business, RJ says; CNX could wait for production volumes and commodity prices to improve until each business is self-reliant, or it could immediately spin off the gas portion, leaving the debt with the coal company which generates enough cash flow to support it.
Dec. 6, 2012, 9:18 AM
Investors seem to take seriously the latest takeover chatter surrounding Walter Energy (WLT), sending shares +7.5% premarket as vague rumors circulate that bidders could emerge. BHP Billiton (BHP) is said to be interested again; Glencore (GLCNF.PK) could be another candidate; Anglo American has been mentioned in the past. Other coal names are up: ANR +1.9%, CNX +1.6%, ACI +1.3%, BTU +0.8%.| Dec. 6, 2012, 9:18 AM | 5 Comments