CNX Resources Corp. to acquire CNX Midstream Partners LP
Wednesday, July 29, 2020
On Monday, CNX Resources Corp. announced it is acquiring all outstanding common shares of CNX Midstream Partners LP, at a cost of about $357 million in CNX common stock, according to the Observer-Reporter.
The company expects the deal to close in the fourth quarter.
“We expect the combined entity to be an even stronger company, with a lower cost of capital and increased investable free cash flow, and we believe the transaction provides significant value for CNX and CNXM stakeholders, creating a best-in-class company,” the company said in a news release.
Learn more: Observer-Reporter > CNX making $357 million acquisition
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.