Consol Selling 5 Coal Mines, River Transport Business in $3.5B Deal

Pittsburgh Tribune-Review
28 October 2013
By Stephanie Strasburg

The Blacksville No. 2 Mine is one of the five Consol coal mines in northern West Virginia confirmed to be sold to Ohio mining competitor Murray Energy Inc., in a deal announced Monday that includes $850 million in cash. The company will keep five mines to help supply overseas demand and use the capital it is freeing up to reinvest in exploration and production of shale gas.

Key events

1860: Several western Maryland coal operators form Consolidation Coal Co. But the company's operation is delayed for four years by the Civil War. The company was headquartered in Cumberland, Md., until 1945.
1945: Consolidated merges with Pittsburgh Coal Co. and moves its headquarters to Western Pennsylvania.
1966: Continental Oil Co., or Conoco, buys Consolidated Coal Co.
1980: CONSOL starts extracting and selling coal bed methane gas to improve safety conditions in its underground mines.
1981: DuPont buys Conoco and sells some of its coal mining interests in Pennsylvania to a subsidiary of German energy company RWE A.G.
1984: The company opens the Bailey Mine in Greene County, which is the largest underground mining complex in the world.
1991: DuPont and RWE form CONSOL Energy as a joint venture.
1999: CONSOL Energy goes public.
2000: CONSOL starts buying gas reserves.
2005: CONSOL creates CNX Gas Corp. and puts its gas assets into the company.
2006: CONSOL acquires Mon River Towing and becomes the largest river operator on the Monongahela River, with 18 tow boats and more than 650 barges.
2010: CONSOL buys Dominion Resource's exploration and production business for$3.5 billion, becoming one of the largest natural gas producers in the Appalachian Basin and one of the largest developers of Marcellus shale.

Consol Energy Inc.
employees: 8,893
reserves: 4.5 billion tons
annual coal production: 56.5 million tons
Murray Energy Corp.
employees: 3,300
reserves: 859 million tons
annual coal production: 30.1 million tons