CONSOL Energy receives $101M from sale of assets

CONSOL Energy Inc. (NYSE: CNX) has closed two separate asset sale transactions.

The company sold its 49% interest in the Western Allegheny Energy (WAE) joint venture to Rosebud Mining Co. The WAE transaction included the conveyance of 63 million tons of coal reserves. This transaction closed on September 30, 2015.

Separately, CONSOL Energy sold 6.7 million tons of lignite reserves located in South Texas to a private entity. This transaction closed on Oct. 6.

Aggregate transaction-related proceeds of $101 million include: $95 million in cash, $2 million in the assumption of liabilities, and $4 million of advance minimum royalties paid under the terms of leases.

CONSOL Energy expected a $6 million EBITDA contribution in 2016 related to the assets sold in the transactions. The company intends to use the proceeds from these transactions to reduce debt.

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