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Consol launches IPO of CNX Coal partnership

Consol Energy Inc. launched the initial offering of stock in a spin-off that will run its Pennsylvania coal mines, and possibly other operations.

The Cecil-based coal and natural gas company said in a U.S. Securities Exchange Commission filing that it would sell up to 11.5 million shares in CNX Coal Resources at a price of $19 to $21 per share. Consol will retain an interest of between 49.5 percent and 55.8 percent of the partnership, depending on whether underwriters of the offer exercise an option to buy more shares.

Consol in March formed the spin-off as a master limited partnership, which provides certain tax benefits for energy companies while allowing them to seek separate investment in assets. CNX Coal Resources will include Consol's three coal mines in Greene and Washington counties — Bailey, Enlow Fork and Harvey — and could later assume Consol's Buchanan metallurgical coal mine in Virginia, its Baltimore export terminal and natural gas gathering pipeline system in Virginia, Kentucky and West Virginia.

source: http://triblive.com