Consol moves step closer to separating coal and gas assets
Consol Energy has filed a registration statement with the U.S. Securities and Exchange Commission that provides additional information about its previously announced plan to separate its coal and natural gas companies.
In December, the Southpointe-based energy company said it was looking to partition its coal and natural gas operations in 2017.
According to a news release Tuesday, Consol said it will separate the company into a coal company and a natural gas exploration and production company.
It said the spinoff would provide current shareholders ownership in two focused companies, each positioned to capitalize on distinct opportunities for future growth and profitability.
The initial Form 10, which was filed by Consol Mining Corp., a subsidiary of the company that will hold the coal business at the time of the spinoff, includes detailed information about the coal business, including historical financial information.
The coal business will be composed of Pennsylvania Mining Complex – Bailey Mine, Enlow Fork Mine and the Harvey Mine and the related coal prep plant; Consol’s ownership interest in CNX Coal Resources, a publicly traded master limited partnership that owns a 25 percent interest in Pennsylvania Mining Complex; the coal export terminal at the Port of Baltimore; undeveloped coal reserves in the Appalachian and Illinois basins; and other related coal assets and liabilities.
According to the filing, Jimmy Brock, who currently is chief executive officer of the coal business, will continue in that role, and Katharine Fredriksen, who formerly was senior vice president for diversified business units and environmental affairs of Consol Energy, is now president of the coal business.
Effective Aug. 2, David Khani, who is chief financial officer of Consol Energy, will serve as CFO of the coal business, and Don Rush, a current vice president of Consol Energy, will become executive vice president and CFO of Consol.
After the separation, Nick DeIuliis, who is CEO of Consol Energy, will serve as president and CEO of the gas E&P business, and Rush will serve as CFO of the E&P business.
“Today’s filing represents a significant step towards completing the company’s separation, with both entities being well capitalized and free cash flow generating,” said DeIuliis. “This strategic separation will enable both businesses to focus on their inherent strengths and unlock value for their shareholders.”