Consol to sell 5 mines for at least $850M in cash
PITTSBURGH (AP) — Consol Energy Inc. is selling a group of five coal mines in West Virginia to Murray Energy Corp. for at least $850 million in cash.
Consol says the sale of its Consolidation Coal Co. subsidiary furthers its exploration and production growth strategy. The five mines produced 28.5 million tons of thermal coal in 2012.
The deal includes $850 million in cash at closing, along with future payments expected to total nearly $184 million. Murray also will acquire $2.4 billion in Consol debt.
Consol expects to record a pre-tax gain of $1.3 billion on its fourth-quarter results, assuming the deal closes by Dec. 31.
Consol will keep its coal mining operations in Pennsylvania, along with its flagship Buchanan Mine in southwestern Virginia and a mining complex in southern West Virginia.
Its shares fell almost 4 percent in premarket trading.
For more details, see Tuesday’s Observer-Reporter.