The largest US coal production company in terms of market value, Consol Energy Inc., reported an increase of its share values. This was the biggest jump in more than two monhts after it said it continued to review its structure. It also said the company is exploring 'all options' to unlock value for its shareholders.
Consol shares jumped 2.9% to USD37.86 per share at late afternoon trading. Earlier in the day, the share increase reached 6.6%, its largest intraday value increase since July 25 of this year.
One of the options being explored by the Canonsburg, PA based company is selling off coal mines or other assets where bids are bing made. It said last July that it was reviewing its current corporate structure in order to boost share values. Other means include sale of infrastrucure as well as other lower quality gas assets or even restructuring the firm to become a master limited partnership as well as spinning off its coal business.
According to definition, master limited partnership pay out cash to unitholders, avoiding corporate taxes to be imposed on the partnership. A number of energy related firms are set up as master limited partnerships because the current tax code limits the structure of the company to natural resources related ventures.
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