NEW YORK (TheStreet) -- Consol Energy (CNX) - Get Report stock is rising 8.42% to $8.50 in afternoon trading on Monday after announcing that it will sell coal assets and suspend its quarterly dividend of 1 cent per share as commodity prices have plunged.
Consol Energy has agreed to sell its Buchanan mine and other coal assets to a private-equity group in a $420 million transaction.
The deal is expected to close during the first quarter, at which point the company will suspend its quarterly dividend.
The proceeds from the deal will be put toward debt reduction. Consol Energy's long-term debt totaled roughly $2.79 billion as of December 31, Reuters reports.
In January, Consol Energy reduced its production and capital spending forecast, she pointed out. At the time, the company had $970 million in assets to cover $1.9 billion in short-term liabilities.
Consol Energy is an integrated energy company with divisions in oil and gas exploration and production as well as coal mining.
Separately, TheStreet Ratings team rates the stock as a "sell with a ratings score of D.
Consol Energy's weaknesses include its disappointing return on equity, generally disappointing historical performance in the stock itself, generally high debt management risk, poor profit margins and feeble growth in its earnings per share.
You can view the full analysis from the report here: CNX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.