The first is its 49% interest in the Western Allegheny Energy (WAE) joint venture in Pennsylvania, which closed September 30. The deal, which included the conveyance of 63 million tons of reserves, was made with fellow Pennsylvania-based producer Rosebud Mining Co.
CONSOL also divested 6.7 million tons of lignite reserves in Texas. The identity of the buyer was not disclosed. That transaction closed October 6.
Of the $101 million aggregate proceeds, $95 million was in cash. Another $2 million came from the assumption of liabilities, and a total of $4 million stemmed from advance minimum royalties paid under the terms of leases.
Company officials expect to use the funds to reduce debt.
CONSOL, once the nation’s longwall leader, has been gradually removing coal from its asset sheet in favor of natural gas. Focused on Appalachian unconventionals, it is now one of the largest independent natural gas exploration, development and production companies.
