A Pittsburgh-based CONSOL Energy Inc. (NYSE: CNX) – one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin – announced the selling of its 49% interest in the Western Allegheny Energy (WAE) joint venture to Rosebud Mining Company. The WAE transaction included the conveyance of 63 million tons of coal reserves. This transaction closed on September 30, 2015.
Separately, CONSOL Energy sold 6.7 million tons of lignite reserves located in South Texas to a private entity. This transaction closed on October 6, 2015.
Aggregate transaction-related proceeds of $101 million include: $95 million in cash, $2 million in the assumption of liabilities, and $4 million of advance minimum royalties paid under the terms of leases.
CONSOL Energy expected a $6 million EBITDA contribution in 2016 related to the assets sold in the transactions. CONSOL Energy intends to use the proceeds from these transactions to reduce debt.
Article continues below this message
Have your opinion heard with Shale Gas International
We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.
If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.
If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com