CONSOL Energy Inc. Reports Operating Results (10-Q/A)
Consol Energy Inc. has a market cap of $7.97 billion; its shares were traded at around $35.3 with a P/E ratio of 13.8 and P/S ratio of 1.7. The dividend yield of Consol Energy Inc. stocks is 1.1%. Consol Energy Inc. had an annual average earning growth of 30.3% over the past 10 years. GuruFocus rated Consol Energy Inc. the business predictability rank of 3-star.CNX is in the portfolios of David Williams of Columbia Value and Restructuring Fund, Arnold Schneider of Schneider Capital Management, George Soros of Soros Fund Management LLC, T Boone Pickens of BP Capital, Ronald Muhlenkamp of Muhlenkamp Fund, Steven Cohen of SAC Capital Advisors, Pioneer Investments, Stanley Druckenmiller of Duquesne Capital Management, LLC, John Keeley of Keeley Fund Management, Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors, Bruce Kovner of Caxton Associates.
Highlight of Business Operations: CONSOL Energy reported net income attributable to CONSOL Energy shareholders of $100.3 million, or $0.54 per diluted share, for the three months ended March 31, 2010. Net income attributable to CONSOL Energy shareholders was $195.8 million, or $1.08 per diluted share, for the three months ended March 31, 2009. See Results of Operations below for a detailed explanation of the variance incurred in the period-to-period comparison.
On April 23, 2010, CONSOL Energy amended the accounts receivable securitization facility to allow the Company to receive, on a revolving basis, up to $200,000. Previously, the facility provided up to $165,000 of short-term funding or letters of credit. The trade accounts receivable facility supports sales, on a continuous basis to financial institutions, of eligible trade accounts receivable. The facility was expanded to meet the future cash needs of the Company.
On April 28, 2010, CONSOL Energy commenced a tender offer to acquire all of the shares of CNX Gas common stock that it does not currently own at a cash price of $38.25 per share. CONSOL Energy currently owns approximately 83.3% of the approximately 151 million shares of CNX Gas common stock outstanding. CONSOL Energys offer is subject to a number of conditions, including the condition, which cannot be waived, that there is tendered into the offer at least a majority of the outstanding CNX Gas shares not currently held by CONSOL Energy. Following the purchase by CONSOL Energy of shares of CNX Gas in the offer, CONSOL Energy intends to merge CNX Gas into a wholly owned subsidiary of CONSOL Energy, with CNX Gas surviving the merger as a wholly owned subsidiary of CONSOL Energy. As a result of the merger, each outstanding CNX Gas share will be converted into the right to receive $38.25. CONSOL Energy anticipates financing the acquisition of CNX Gas shares by means of internally generated funds, borrowings under its credit facilities and/or proceeds from its recently closed offering of common stock. Previously, on March 21, 2010, CONSOL Energy announced that it had entered into an agreement with T. Rowe Price Associates, Inc., on behalf of its investment advisory clients owning approximately 9.5 million shares of CNX Gas common stock, or approximately 37% of the shares of CNX Gas that CONSOL Energy does not currently own. Under the agreement, CONSOL Energy agreed, subject to certain conditions, to commence this tender offer and T. Rowe Price agreed to tender these shares of CNX Gas common stock subject to the rights of certain clients with respect to those shares which are discretionary account shares.
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