Coal spinoff could be a takeover target

Article Excerpt

On November 28, 2017, the old Consol Energy Inc. split into two, separately traded, public companies. While one firm mines coal, the other produces natural gas. Under the terms for the spinoff, Consol shareholders received one share of the coal company (which kept the Consol Energy name) for every eight shares they held in the old Consol Energy. The remaining company now operates as CNX Resources. CNX RESOURCES $15 (New York symbol CNX; Resources sector; Shares outstanding: 230.1 million; Market cap: $3.4 billion; Takeover Target Rating: Medium; No dividends; TSINetwork Rating: Extra Risk; www.cnx.com) is a natural gas producer operating in the Appalachian region of the eastern U.S. The company holds natural gas assets consisting of over four million acres of land, with almost 13,000 producing wells and over 6.3 trillion cubic feet of natural gas reserves. That includes 4.5 trillion from the Marcellus and Utica shale basins. Those high-quality shale holdings should let CNX continue to report rising production and reserves…