CONSOL Energy Inc. said efforts to sell its coal mining master limited partnership “did not produce compelling results” so the company will focus 100% on preparing a spinoff transaction to be ready before 2017 ends.
CONSOL, which is increasingly focused on its natural gas exploration and production operations, launched a process that would separate the Pennsylvania mining complex, operated by CNX Coal Resources LP, and other coal assets from CONSOL.
DeIuliis said CONSOL received multiple bids for the company’s coal business. He divided the interested buyers into two types: strategic buyers who were willing to buy but unable to pay fair value and financial buyers who were able to buy, but unwilling to pay because they had become accustomed to distressed coal assets at lower valuations. He added that several potential peers had a “credibility deficit” with their equity owners in the wake of recent market struggles.
DeIuliis said CONSOL would still consider any last-minute bids for the coal segment as it works on figuring out the best timing for the coal spinoff.