Consol Energy Inc. (NYSE: CNX) filed regulatory forms July 11 to break the company into separate coal and gas businesses—effectively stating, “It’s not you. It’s us.”
Consol management says the companies need to go their own way to continue to grow. Together, Consol has been on the rocks–split between coal mining and tapping into reserves of natural gas.
Following a spinoff of its mining and other coal assets into Consol Mining Corp. (CoalCo), Consol management sees the independent companies more focused on understanding each business in the capital and investor markets and creating a stronger, more focused investor base.
The company plans to sell between $400 million and $600 million of mostly non-EBITDA generating assets—minus the roughly $108 million that closed by the first-quarter of 2017.