CONSOL Energy Inc (NYSE:CNX) has managed to take some of the transformative steps with the help of which they can increase and advance the E&P Growth of the company.
In order to advance the E&P Growth of the company, CONSOL Energy Inc has entered into an agreement to sell their Consolidation Coal Company (CCC) subsidiary which contains five of all the long wall coal mines in West Virginia to a subsidiary of Murray Energy Corporation belonging to Murray Energy for $3.5 billion.
J. Brett Harvey, the Chairman and CEO of CONSOL Energy Inc commented on the decision, “Though this decision would help in advancing and increasing the E&P Growth of the company, the same of these five mines has been a very tough and difficult decision taken by the team of CONSOL Energy Inc. The employees present in these mines are present in one of the safest and most productive mines anywhere in the world.”
The Consolidation Coal Company mines which are being sold in the transaction include Shoe Maker Mine, Mc Elroy Mine, Blacks Ville No. 2 Mine, Loveridge Mine and Robinson Run Mine. When combining the complete productivity of these mines, they have managed to produce 28.5 million tons of thermal coal in the year 2012. Murray Energy is acquiring approximately 1.1 billion tons of Pittsburg No. 8 Seam Reserves.
Apart from this, the River and Dock Operations belonging to CONSOL Energy Inc is also included in the transaction. In the year 2012, fleet of 21 tow boats and 600 barges transported around 19.3 million tons of coal and other commodities.
The aggregate value to be received in the transaction is $3.5 billion. The consideration includes $850 million in cash and the future payments expected is near to $184 million in value.