CONSOL Energy Inc. (NYSE: CEIX) (CONSOL), today announced that its Board of Directors has authorized adoption of a program to repurchase, from time to time, our outstanding shares of common stock or 11.00% Senior Secured Notes due 2025, in an aggregate amount of up to $50 million through the period ending June 30, 2019. The CONSOL common stock and the notes may be purchased on the open market, through negotiated purchases or otherwise. The repurchase plan will be subject to limitations under the company's debt covenant package and under the tax matters agreement entered into in connection with CONSOL's separation from CNX Resources Corporation into an independently traded coal company. Any repurchases will be at CONSOL's discretion subject to general market conditions and other considerations, and CONSOL has no obligation to repurchase any of its common stock or notes under the program.
In conjunction with the announced repurchase plan, CONSOL reiterates its commitment to deleveraging its balance sheet. The management team firmly believes that reducing the outstanding indebtedness will improve the overall risk profile and cost of capital for the company, which in turn will create significant value for all our stakeholders.
"Our board has now granted us the ability to use some of the free cash flow that we hope to generate in the coming quarters to drive the most value for our stockholders. We are committed to strong financial discipline and expect to be rate-of-return-driven as we evaluate future growth and capital return opportunities. The repurchase plan will be one of the several tools at our disposal and will be balanced against other opportunity sets, which we have been cultivating internally post-separation," said David Khani, Executive Vice President and Chief Financial Officer of CONSOL Energy Inc.
About CONSOL Energy Inc.
CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg-based producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal. It owns and operates some of the most productive longwall mining operations in the Northern Appalachian Basin. Our flagship operation is the Pennsylvania Mining Complex, which has the capacity to produce approximately 28.5 million tons of coal per year and is comprised of 3 large-scale underground mines: Bailey, Enlow Fork, and Harvey. The company also owns and operates the CONSOL Marine Terminal, which is located in the port of Baltimore and has a throughput capacity of approximately 15 million tons per year. In addition to the ~767 million reserve tons associated with the Pennsylvania Mining Complex, the company also controls approximately 1.6 billion tons of greenfield thermal and metallurgical coal reserves located in the major coal-producing basins of the eastern United States. Additional information regarding CONSOL Energy may be found at www.consolenergy.com.
