CNX making $357 million acquisition
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Southpointe-based CNX Resources Corp. announced Monday it is acquiring all outstanding common shares of CNX Midstream Partners LP, in exchange for about $357 million in CNX common stock.
That deal is expected to close during the fourth quarter.
The company said in a news release: “We expect the combined entity to be an even stronger company, with a lower cost of capital and increased investable free cash flow, and we believe the transaction provides significant value for CNX and CNXM stakeholders, creating a best-in-class (exploration and production) company.
“CNX continues to be nimble and pursue opportunities to position ourselves for what lies ahead and create value through what is a chaotic energy market. . . . We saw an opportunity with an asset that we knew very well and moved on it.”
Among benefits the company anticipates receiving from the transaction:
- Lower costs and materially expanded margins, solidifying CNX as the lowest cost producer in Appalachian Basin;
- Increased operational and financial flexibility to optimize cash flow allocation;
- Enhanced free cash-flow generation providing value to now a single class of equity holders.