CNX Coal Resources LP (NYSE/CNXC) will hold its initial public offering (IPO) on Thursday, June 25th. Here is what you need to know about the upcoming IPO. (Source: Securities and Exchanges Commission, June 15, 2015.)
Who is CNX Coal Resources?
CNX Coal Resources LP is a master limited partnership (MLP) recently formed by CONSOL Energy Inc. (NYSE/CNX). The company’s initial assets include a 20% interest and operational control over CONSOL Energy’s mining complex in Pennsylvania. The mining complex contains three underground mines and the surrounding infrastructure needed to produce thermal coal. Its main market consists of electric utilities in the eastern United States.
What is a Master Limited Partnership (MLP)?
An MLP is a limited partnership that can be publicly traded on an exchange. MLPs combine the tax benefits of a limited partnership with the liquidity of a publicly-traded security. It issues investment units that are just like common stocks.
For an MLP, there is no tax at the company level. Taxes of an MLP are passed on to its unitholders. Not all businesses can qualify as MLPs. To qualify, the partnership must have at least 90% of its income in commodities, natural resources, or real estate.
What is CNX Coal Resources’ Revenue?
In 2014, CNX Coal Resources had revenue of $334.5 million, and net income of $83.9 million. In the first three months of 2015, revenue came in at $77.6 million, with $64.3 million in net income.
What is CNX Coal Resources’ IPO Price?
CNX Coal Resources plans to float its units at a price between $19.00 and $21.00 per unit.
What is CNX Coal Resources’ Stock Symbol?
CNX Coal Resources plans to list its units on the New York Stock Exchange (NYSE) under the ticker symbol “CNXC.”
How Much Money will CNX Coal Resources’ IPO Raise?
CNX Coal Resources plans to issue 10 million units. At unit prices between $19.00 and $21.00 apiece, the IPO would raise $200 million at midpoint.
How Would CNX Coal Resources Use the Money?
According to the Securities and Exchanges Commission (SEC) filing, CNX Coal Resources would distribute all of the net proceeds from the IPO to CONSOL Energy.
What is CNX Coal Resources’ IPO Date?
The IPO date is set to be Thursday June 25th, 2015.