CNX Resources Spins off CONSOL Energy.
CNX Resources Corp. (CNX), formerly named CONSOL Energy Inc., announced on November 29 that it has completed the spinoff of CONSOL Energy Inc., formerly named CONSOL Mining Corp. (CEIX), creating two publicly traded companies--a natural gas exploration and production company and a coal company.
"Our objective was to once again to transform a 150-year-old institution, which owns and operates the best natural gas and coal assets in the world," said Nick Deluliis, president and CEO, CNX Resources. "We have accomplished that goal and, in doing so, positioned two new companies to dedicate singular focus to their individual industries and market segments."
Under the terms of the separation, on November 28, the company's stockholders received a distribution of one share of common stock of the newly named CONSOL Energy for every eight shares of the company's common stock held as of the close of business on the record date of November 15. No fractional shares of CONSOL Energy were issued and stockholders received cash in lieu of fractional shares. The company's stockholders retained their shares of company common stock, but as a result of the name change, these shares now represent shares of CNX Resources Corp.
In connection with the distribution, the company changed its name from CONSOL Energy Inc. to CNX Resources Corp. and retained its ticker symbol CNX on the New York Stock Exchange (NYSE). At the same time, the newly formed CONSOL Mining Corp. changed its name to CONSOL Energy Inc. and its common stock begins trading today on the NYSE under the ticker symbol CEIX.
"The coal assets that are the foundation of our company today are well-capitalized and have a well-documented history of generating strong free cash flow," said CEO of CONSOL Energy Jimmy Brock. "We look forward to now allocating capital to further develop this globally known platform that stands apart within the industry in terms of safety, margins and productivity."
Brock added that CONSOL has a strong balance sheet and liquidity that complements its asset base.
"Investor expectations are re-emerging and the timing of our spin ties very nicely to prior upcycles that should create value for all of our stakeholders," Brock said.
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|Publication:||Coal Age (1996)|
|Date:||Dec 1, 2017|
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