Consol Energy puts coal unit IPO on hold

July 28 (Reuters) - Coal and natural gas producer Consol
Energy Inc CNX.N said it was delaying a planned initial public
offering of a unit holding steel-making coal assets due to weak
prices.
The company, which has been looking to lower its exposure to
weak coal prices, also reported a much bigger quarterly loss,
hurt by an $829 million impairment charge on its oil and gas
assets. ID:nPn11Y0ht
Consol said it was now looking at partnering with a third
party to grow its met coal unit before taking it public.
Consol took a unit holding power-generating coal assets
public in April as part of a broader strategy to shift its focus
to natural gas production.
A second coal unit holding metallurgical, or steel-making
coal, assets was supposed to go public in the fourth quarter,
but Consol said on Tuesday it was putting the IPO "on hold".
Prices for metallurgical coal have slumped due to week
Chinese demand, while thermal coal prices have been hit as power
producers shift to cheaper and cleaner natural gas.
Consol's shift to natural gas production has not been
successful because of a steep decline in prices for the fuel
amid a supply glut.
Southeastern Asset Management Inc, Consol's largest
shareholder, said in a filing on July 20 that it plans to meet
the company and others to discuss a possible "monetization" of
the gas unit, including a spinoff or a sale.
Consol's net loss widened to $603.3 million, or $2.64 per
share, in the second quarter ended June 30, from $24.9 million,
or 11 cents per share, a year earlier.
Excluding items, Consol reported a loss of 37 cents per
share.
The company's revenue dropped nearly 31 percent to $648.9
million.
Up to Monday's close, Consol's stock had fallen nearly 49
percent this year, compared with a 57 percent drop in the
broader Dow Jones U.S. Coal index .DJUSCL .