Shares of Consol Energy Inc., the largest U.S. coal producer by market value, rose the most in more than two months after the company said it’s continuing to review its structure and is considering “all options” to unlock value.
Consol gained 2.9 percent to $37.86 at 3:05 p.m. Thursday It earlier climbed as much as 6.6 percent, the biggest intraday increase since July 25.
The Canonsburg, Pennsylvania-based company commented Friday in a statement. Consol may sell coal mines or other assets and four or five parties are bidding, industry newsletter Coal & Energy Price Report said Thursday, without saying where it got the information.
Consol produces coal from reserves in Pennsylvania, West Virginia, Virginia and Utah, and natural gas from the Marcellus and other shale deposits. It first said in July it was looking at its corporate structure to boost the share price.
The options Consol is looking at include the sale of infrastructure and lower-quality gas assets, a possible restructuring as a master limited partnership, and separating the coal businesses, David Gagliano, an analyst at Barclays Plc in New York, said in a Sept. 13 note.
Master limited partnerships are structured to pay cash to unitholders, shielding the partnership from corporate taxes. Many MLPs are energy-related because tax code limits the structure primarily to natural-resources businesses.
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