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LONDON, UK / ACCESSWIRE / November 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for CONSOL Energy Inc. (NYSE: CNX) ("CONSOL"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=CNX. The Company announced on October 31, 2017, that its Board of Directors has given the final approval for the previously announced separation of CONSOL into two publicly-traded Companies, i.e. a coal Company (CoalCo or SpinCo) and a natural gas exploration and production (E&P) Company (GasCo or RemainCo). For immediate access to our complimentary reports, including today's coverage, register for free now at:

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In this regard, CONSOL has committed a pro rata distribution of all outstanding shares of CONSOL Mining Corp. (CoalCo)'s common stock to CONSOL's stockholders. Separately, the Company has also declared an increase in its share repurchase program to $450 million.

Terms and Conditions for the Separation

Exchange Ratio

  • On November 28, 2017, which is the expected distribution date, CONSOL's stockholders will get one share of common stock of CoalCo for every eight shares of CONSOL common stock held as on the close of business on the record date of November 15, 2017.
  • However, CONSOL would not issue any fractional shares of CoalCo. Instead, the stockholders will get cash in exchange of the fractional shares.
  • The distribution of CoalCo's common stock would conclude the separation of the coal business from CONSOL. Post separation, CoalCo will operate as an independent, publicly traded Company without any ownership interest of CONSOL. CoalCo will own, operate, and develop all of CONSOL's coal assets, including its interest in the Pennsylvania Mining Complex, the Baltimore Marine Terminal, and nearly one billion tons of greenfield coal reserves.
  • Also, CoalCo will own 100% of the general partner of CONSOL Coal Resources LP (i.e. a 1.7% general partner interest), as well as all of the incentive distribution rights and the common and subordinated interests in CNX Coal Resources LP, which is currently owned by CONSOL.

Names and Stock Symbols of Post-Separation Companies

  • As a result of the separation, CONSOL will change its name to CNX Resources Corp. However, it will retain its ticker symbol CNX on the New York Stock Exchange (NYSE). The stockholders of CONSOL will retain their shares but due to the name change, these shares would represent shares of CNX Resources Corp. after separation.
  • On the other hand, CoalCo will change its name to CONSOL Energy Inc., and its common stock will trade on the NYSE under the ticker symbol CEIX.
  • Besides, CNX Coal Resources LP will change its name to CONSOL Coal Resources LP. Its common stock will continue to be listed on the NYSE but due to the name change, its NYSE ticker symbol would change to CCR from CNXC.

Two Markets for CONSOL's Common Stock till Completion of Separation

  • From November 14, 2017, to the distribution date, CONSOL's common stock would trade on two markets: (i) the ?regular-way market' and (ii) the ?ex-distribution market'.
  • The shares that trade in the ?regular way market' will be entitled to shares of CoalCo's common stock distributed pursuant to the distribution. On the other hand, shares that trade in the ?ex-distribution market' will trade under the symbol CNX WI, without any entitlement to shares of CoalCo's common stock distributed pursuant to the distribution.
  • It is expected that the ?when-issued' trading of CoalCo's common stock would commence on or around November 14, 2017, under the symbol CEIX WI. It will continue until the distribution date, while the ?regular way' trading of CoalCo's common stock is expected to begin on November 29, 2017.
  • An important thing to note here is that CONSOL's stockholders who sell their shares of CONSOL's common stock in the ?regular-way' market before November 29, 2017, will also be selling their entitlement to receive shares of CoalCo's common stock in the distribution.

Distribution of CoalCo's Common Stock

  • The distribution of stock dividend of CoalCo's common stock is subject to the satisfaction or waiver of several conditions described in CoalCo's Registration Statement on Form 10 (as amended), including the condition of the Securities and Exchange Commission (SEC) declaring the Form 10 effective.
  • It is also to be noted that no action is required by CONSOL's stockholders to receive shares of CoalCo's common stock. CONSOL intends to mail a notice of Internet availability of the information statement to all stockholders entitled to receive the distribution of shares of CoalCo's common stock by November 03, 2017.
  • This information statement is basically an exhibit to CoalCo's Registration Statement on Form 10. It explains the risks of owning CoalCo's common stock and other details related to the separation and distribution.

An Increase in the Share Repurchase Program

  • On September 05, 2017, CONSOL's Board of Directors had approved a one-year share repurchase program of up to $200 million. Out of this, common stock worth around $81 million had already been repurchased at an average price of $16.00 per share as on October 30, 2017.
  • The Board of Directors announced an increase in the aggregate amount of the repurchase plan to $450 million on October 30, 2017.

Last Close Stock Review

On Wednesday, November 01, 2017, the stock closed the trading session at $16.57, climbing 2.73% from its previous closing price of $16.13. A total volume of 5.60 million shares have exchanged hands, which was higher than the 3-month average volume of 3.29 million shares. CONSOL Energy's stock price advanced 10.84% in the last three months and 11.36% in the past six months. The stock has a dividend yield of 0.24%. At Wednesday's closing price, the stock's net capitalization stands at $3.81 billion.

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