CANONSBURG, Pa., Nov. 29, 2017 /PRNewswire/ -- CONSOL Energy Inc.
(NYSE: CEIX) (CONSOL), formerly named CONSOL Mining Corporation,
today announced that it has completed the separation from its
former parent company CNX Resources Corporation (NYSE: CNX),
formerly named CONSOL Energy Inc., and has begun operating as an
independent, publicly-traded company listed on the New York Stock
Exchange under the symbol "CEIX". CONSOL is a low-cost producer of
high-Btu thermal and crossover metallurgical coals from its
Pennsylvania Mining Complex in the Northern Appalachian Basin, and
it also owns and operates a major coal export terminal located in
the Port of Baltimore. The company
is well positioned to capitalize on the ongoing recovery in the
coal markets, and its coal assets and management team have a
demonstrated capability of generating strong free cash flow
throughout all parts of the commodity cycle.
"This is a monumental event in the history of a 150-plus year
old company. I am very excited about what the future has in store
for CONSOL and about being able to lead a team of extremely
talented people. 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.
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. We are committed to
strong financial discipline and will be rate-of-return-driven as we
evaluate future growth and capital return opportunities. I also
want to take this opportunity to thank our advisors, banking
partners and investors who provided us with the necessary support
to make this spin-off possible. We are coming out with a strong
balance sheet and liquidity that complements our 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" said Jimmy
Brock, Chief Executive Officer of CONSOL Energy
Inc.
Capitalization
As of November 28, 2017, CONSOL
has total debt of approximately $918
million after taking into account the various financings
entered into as part of the spin-off, unrestricted cash and cash
equivalents of approximately $142
million and total liquidity of approximately $354 million, after accounting for $88 million in outstanding letters of credit. We
also anticipate entering into an accounts receivables
securitization facility by the end of 2017 that is anticipated to
provide us with additional liquidity of approximately $50 million. Based on the when-issued share price
at the close of business on November 28,
2017, and approximately 28
million shares outstanding, the current equity market
capitalization of CEIX is approximately $600 million. CEIX is expected to be added
to the S&P Small Cap 600 GICS Coal & Consumable Fuels
Sub-Industry Index.
Completion of the Spin-off
Under the terms of the separation and distribution agreement, on
November 28, 2017, the CNX Resources
Corporation stockholders received a distribution of one share of
common stock of the newly named CONSOL Energy for every 8 shares of
the CNX Resources Corporation's common stock held as of the close
of business on the record date of November
15, 2017. No fractional shares of CONSOL Energy were
issued, and stockholders will receive cash in lieu of fractional
shares.
In connection with the distribution, the former parent changed
its name from CONSOL Energy Inc. to CNX Resources Corporation and
retained its ticker symbol "CNX" on the New York Stock
Exchange. At the same time, the newly formed CONSOL Mining
Corporation changed its name to CONSOL Energy Inc., and its common
stock begins trading today on the New York Stock Exchange under the
ticker symbol "CEIX".
In addition, the former parent transferred all of its ownership
interest in CNX Coal Resources LP to CONSOL Energy Inc. as part of
the separation. As a result, CNX Coal Resources LP changed
its name to CONSOL Coal Resources LP and changed its ticker to
"CCR".
About CONSOL Energy Inc.
CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg-based producer and exporter of
high-Btu bituminous thermal and crossover metallurgical coal.
It owns and operates some of the most productive longwall
mining operations in the Northern Appalachian Basin. Our flagship
operation is the Pennsylvania Mining Complex, which has the
capacity to produce approximately 28.5 million tons of coal per
year and is comprised of 3 large-scale underground mines: Bailey,
Enlow Fork, and Harvey. The company also owns and operates the
CONSOL Marine Terminal, which is located in the port of
Baltimore and has a throughput
capacity of approximately 15 million tons per year. In
addition to the ~767 million reserve tons associated with the
Pennsylvania Mining Complex, the company also controls
approximately 1.6 billion tons of greenfield thermal and
metallurgical coal reserves located in the major coal-producing
basins of the eastern United
States. Additional information regarding CONSOL Energy may
be found at www.consolenergy.com.
Contacts:
Investor:
Mitesh Thakkar, (724) 485-3133
miteshthakkar@consolenergy.com
Media:
Zach Smith, (724) 485-4017
zacherysmith@consolenergy.com
Cautionary Statements:
Various statements in this release, including those that express
a belief, expectation or intention, may be considered
forward-looking statements (as defined in Section 21E of the
Securities Exchange Act of 1934, as amended) that involve risks and
uncertainties that could cause actual results to differ materially
from projected results. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. The forward-looking statements may include
projections and estimates concerning the timing and success of
specific projects and our future production, revenues, income and
capital spending. When we use the words "believe," "intend,"
"expect," "may," "should," "anticipate," "could," "estimate,"
"plan," "predict," "project," or their negatives, or other similar
expressions, the statements which include those words are usually
forward-looking statements. When we describe strategy that involves
risks or uncertainties, we are making forward-looking
statements. The forward-looking statements in this press
release, if any, speak only as of the date of this press release;
we disclaim any obligation to update these statements. We have
based these forward-looking statements on our current expectations
and assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. Please see the Registration Statement on Form
10 (as amended) declared effective by Securities and Exchange
Committee on November 3, 2017 for a
further discussion of some of the risks and uncertainties relating
to CONSOL Energy's operations, business and results.
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SOURCE CONSOL Energy Inc.