Consol Energy Inc. hopes to fully separate its oil and gas business from its historic coal mining side by the end of the year, the Cecil-based company announced Tuesday.
Consol filed a registration statement to spin off a public company that will be in charge of the Bailey, Enlow Fork, and Harvey mines in southwestern Pennsylvania, a coal preparation plant, the Baltimore coal export terminal, and undeveloped reserves in Appalachia and the Illinois basin, as well as other assets and liabilities.
The new firm will also take over Consol Energy’s 25 percent interest in CNX Coal Resources LP, an earlier spinout that holds a 25 percent interest in the southwestern Pennsylvania mine complex.
The remaining oil and gas business will be given a new name, while the mining company will trade under Consol Energy Inc.
Shareholders of the current Consol will get common stock in the new coal company.
“The spin-off would provide current shareholders ownership in two leading and focused companies, each positioned to capitalize on distinct opportunities for future growth and profitability,” the company said in a statement Tuesday morning.
The separation has been years in the making and the company believes it will provide more clarity and, therefore, drive up the value of both the gas and the coal sides of the house.
Consol’s stock price shot up almost 6 percent on news of the split on Tuesday. CNX Coal was up about 1 percent at closing.
The coal side of the business, which will be spun out, had 1,661 employees at the end of last year.
Anya Litvak: firstname.lastname@example.org or 412-263-1455.