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Murray Energy Buys Five Consol Mines

Transaction package amounts to $3.5 billion in cash and debt

October 29, 2013

Consol Energy Inc. announced Monday it is selling all five of its Consolidation Coal Co....

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(71)

wonderwhy

Oct-30-13 7:51 AM

daWraith

Oct-28-13 5:09 PM Agree | Disagree

Blunderlie "NO duwhop. I do NOT sell to coal mines. I service their vendors. " "Oh, and I will add, Murray is also slow pay."

Uuuuh if you DON'T SELL to MURRAY, then how do you KNOW they are slow pay??

Hearsay????

What a putz!

SLAM! Meep Meep!

Because some of their vendors quit doing business with him because he is slow pay. No brainer.....meep meep...........

0 Agrees | 0 Disagrees | Report Abuse »

NRALifer59

Oct-30-13 6:08 AM

*******finance.yahoo****/video/consol-ceo-3-5-billion-141600297.html

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Ragnar

Oct-29-13 6:56 PM

From CNX's SEC filing dated 10/29/13, total company liquidity as of 9/30/13 was $2.3 billion. Sounds impressive, right? Well, of this $2.3 billion, just $21.1 million was in cash. The remaining $2.279 billion is available through a bank facility, with a maximum borrowing ability of $2.5 billion.

Not only is CSX cash starved, it has apparently exhausted nearly 92% of its' available credit.

Sounds like a cash crunch to me.

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Ragnar

Oct-29-13 6:52 PM

Harvey is not a good CEO. You can discuss subjective items all you like. I prefer to focus on objective measures of performance. Such as:

Sales-5-year growth rate: CNX: 5.72% Industry: 31.17%

Earnings Per share-5-year growth rate: CNX: negative 7.37% Industry: + 7.6%

Pre-Tax Margin, 5-year avg: CNX: 12.6% Industry: 22.5%

ROI-5 year avg: CNX: 10.1% Industry: 11.2%

Over CNX's last 20 Quarters, the company has had a net change in cash of negative $66.58 million.

Free cash flow was negative $847 million for 2012. This is a cash starved company.

Of course, Harvey is not cash starved. He owns just over 330,000 shares in various trusts & 401ks and another 391,000 directly. He was paid $3.86 million in cash and bonuses only last year. He has been CEO for more than 16 years and CNX's total return in that period? 16%.

You would better rates on CDs or T-Bills!

1 Agrees | 0 Disagrees | Report Abuse »

WVEXPAT

Oct-29-13 6:10 PM

@wonder,

"More places to have fake coal dust on the workers' faces for political stunts."

"Black- My comment is true. It made national news."

I'd be very interested in reading the article. Care to point out which national publication discussed fake coal dust on miners faces as a stunt??

You'll have to be pretty specific as Google really didn't come up w/ anything.

Thanks!

1 Agrees | 2 Disagrees | Report Abuse »

Blackrock

Oct-29-13 10:00 AM

Harvey presided over the debacle, regardless of Bakers conduct. He was responsible for instituting the 24/7 production schedule, not Baker. And because of that work schedule, the company couldn't meet payroll. If you were there, and I have no reason to believe you were not, you are misinformed. The CEO is in charge and is held responsible. Very unlike our dear president Obama. Ha. Harvey is not who you think he is. My opinion. Obviously, your opinion differs.

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caltransplant

Oct-29-13 9:57 AM

CHEROKEEIGNORANT, someone needs to unplug your computer! Have you thought about going back to school in order to attain some level of literacy?

2 Agrees | 0 Disagrees | Report Abuse »

caltransplant

Oct-29-13 9:49 AM

Gee, Ohiodem, maybe it's because THERE'S NO FREAKING WAR ON COAL!!!!!

2 Agrees | 1 Disagrees | Report Abuse »

Coalman

Oct-29-13 8:58 AM

Blackrock , other then calling Pete Lilly Bill, my comments are true, because Beleive me I Know, I was there while it was happening and KNOW for a fact what took place..I will agree about Baker and his playboy life style, he was terrible and he did harm Mr. Harvey in many ways while taking advantage of their friendship from years before. I agree on coal price rise and hard working people, but he was in charge at the time and YES, he gets the credit...as far as poor management , he got rid of Playboy Baker by whatever means himself or someone on the board telling him, either way Baker was gone..You are correct, Baker should have never been hired at any position...

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Blackrock

Oct-29-13 8:45 AM

So, Coalman, it was not Harvey who rescued the company, it was a combination of a upturn in coal prices and primarily the hard working efforts of the people at the mine sites themselves, not someone sitting in a corporate office. So be careful when you throw the "stupid" word around.

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Blackrock

Oct-29-13 8:38 AM

Coalman, you are very wrong. In the early 2000s, when Harvey was CEO along with his sidekick COO Dan Baker, they instituted a 24/7 production policy with no scheduled maintenance downtime. They about ran Consol into the ground and production was down drastically. It was during this time that Consol was forced to borrow money to make payroll. Harvey presided over that debacle and nearly lost his job. He survived by sacrificing his good friend Baker and hired Lilley as a concession to the Board of Directors. Also notice how he jettisoned Lilley at an opportune time. And it was Pete Lilley, not Bill. He was a good man but when it became apparent that he was a threat to Harvey, he was ushered out.

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Blackrock

Oct-29-13 8:28 AM

Hoopie, who has consistently thrown union coal miners under the bus in his leftist zeal to support the EPA and Obama, is now concerned about his union "brothers". What a hoot but quite telling.

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Coalman

Oct-29-13 8:27 AM

Some of these comments are interesting and a few are down-right Stupid. Mr. Harvey has not "Poorly Managed" this company . Matter of fact, several years ago not long after Mr. Harvey became CEO, Consol was on the verge of not being able to even make payroll. Brett Harvey and Bill Lilly turned Consol around and made it a profitable company again and by doing so, set the standard for the coal industry.

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acousticportal

Oct-29-13 8:24 AM

The "War on Coal" must appear attractive to someone.

4 Agrees | 1 Disagrees | Report Abuse »

Blackrock

Oct-29-13 7:58 AM

Consol "unloaded" because they were in a desperate cash starved position. Nothing more, nothing less. Coal will remain strong, either here or overseas or both. And, yes, there were several bidders, but Murray offered up the most cash and that's what Consol wanted desperately.

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Blackrock

Oct-29-13 7:54 AM

Yep, you're right Hoopie, $850 isn't a cash rich transaction. Yep.

1 Agrees | 2 Disagrees | Report Abuse »

Blackrock

Oct-29-13 7:53 AM

NRA, you are correct. The long term future of the UMWA is bleak. It has not been able to organize and new mines because the nonunion mines pay more and provide better benefits than union mines. And you also do not have the union sucking money out of your paycheck. But there are many, including leftists like Hoopie and Rocky, who are predicting death, doom and gloom, see "underhanded carnage". Isn't going to happen.

1 Agrees | 3 Disagrees | Report Abuse »

idliketoknow

Oct-29-13 7:48 AM

Atoddh, you're foolish to think Murray was the only potential buyer who made an offer...

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atoddh

Oct-29-13 7:24 AM

black/hoopie: Don't you figure this is a leverage buyout with debt against the assets purchased. Murray how has a huge debt and legacy liability. If(when) the power plants close or convert to gas he has a problem. Consol was fortunate to find someone to unload them on. Murray is gambling with some lenders money.

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NRALifer59

Oct-29-13 6:53 AM

I don't think anyone said Murray would break the union, it's been shrinking since the 1980s. For the record I was a member of two different UMWA locals in the 70s/early 80s. The UMWA hasn't been able to organize a single mine around here since the middle 1970s, some examples: Consol's Bailey & Enlow Fork mines which have been open for over 20 years, Murray's Century mine which has been operating since 2001 and now Alliance Coal's Tunnel Ridge mine. Rosebud Mining has also opened up several small non-union underground mines in the area, recently. The UMWA hasn't managed to organize a single one.

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RockEReputation

Oct-29-13 6:42 AM

"I would love to be in the negotiations when the current contract expires"... why, you adore upperhanded carnage?

"it is a fallacy that Murray will break the union"

Murray fought to become non-signatory to BCOA agreements due to a meager 500ish UMWA members at #6

...now "welcomes" another 3800 UMWA members into his fold?...as well, $2.4 Billion in pension responsibility?...and what?...will say a prayer in 2016 for Hillary's and the UMWA's continued success?

3 Agrees | 1 Disagrees | Report Abuse »

wvhoopie

Oct-29-13 6:22 AM

Blackrock, I never said that it wasn't a cash transaction, but hey, we're used to righties just making stuff up! More than two thirds of this sale is paper debt. Pension liabilities can be crushing to a company's bottom line. Reminds me of Peabody Coal....

3 Agrees | 2 Disagrees | Report Abuse »

Blackrock

Oct-29-13 6:21 AM

"Coal is a goner". Ha, how many times have I heard that over the years. And Atoddh, with your business sense, I wish I could invest in Murray Energy. How's that country music will save the Ohio Valley idea working for you?

3 Agrees | 3 Disagrees | Report Abuse »

Blackrock

Oct-29-13 6:18 AM

NRALifer is correct. I would love to be in the negotiations when the current contract expires. But it is a fallacy that Murray will break the union. If he could do so, #6 would have been nonunion a long time ago. However, workplace rules will change. Murray does hate the UMWA, however, Murray loves money even more.

4 Agrees | 3 Disagrees | Report Abuse »

Blackrock

Oct-29-13 6:15 AM

Hoopie, "This isn't a cash transaction". You've said a lot of foolish things, Hoopie, this is one of them. $850 million, Hoopie? Not a cash transaction?

1 Agrees | 4 Disagrees | Report Abuse »

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