CANONSBURG, Pa., April 24, 2020 /PRNewswire/ -- The Board of
Directors of CONSOL Coal Resources GP LLC, the general partner of
CONSOL Coal Resources LP (NYSE: CCR), today announced a temporary
suspension of quarterly cash distributions to all unitholders due
to the ongoing uncertainty in the commodity markets driven by
COVID-19 pandemic-related demand decline.
"We are living in very uncertain times and the depth and breadth
of demand decline is very unpredictable at this moment," said
Jimmy Brock, Chief Executive Office
of CONSOL Coal Resources GP, LLC. "Accordingly, we feel it is
prudent to conserve cash, boost liquidity and reduce our
outstanding debt. The management team has undertaken several
actions at operational and corporate levels over the last few
months as we seek to manage our balance sheet and liquidity. As we
gain better visibility on customer demand during the next quarter,
the Board of Directors will determine an appropriate level for cash
distributions."
This press release is intended to be a qualified notice to
nominees as provided for under Treasury Regulation Section
1.1446-4(b). Brokers and nominees should treat one hundred percent
(100.0%) of CONSOL Coal Resources LP's distributions to non-U.S.
investors as being attributed to income that is effectively
connected with a United States trade or business.
Accordingly, CONSOL Coal Resources LP's distributions to non-U.S.
investors are subject to federal income tax withholding at the
highest applicable effective tax rate. Nominees, and not CONSOL
Coal Resources LP, are treated as withholding agents responsible
for withholding on the distributions received by them on behalf of
foreign investors.
About CONSOL Coal Resources LP
CONSOL Coal Resources (NYSE:CCR) is a master limited partnership
formed in 2015 to manage and further develop all of CONSOL Energy
Inc.'s (NYSE: CEIX) active coal operations in Pennsylvania. CCR's assets include a 25%
undivided interest in, and operational control over, the
Pennsylvania Mining Complex, which consists of three underground
mines - Bailey, Enlow Fork and Harvey - and related infrastructure.
For its ownership interest, CCR has an effective annual production
capacity of 7.1 million tons of high-Btu North Appalachian thermal
and crossover metallurgical coal. More information is available on
our website www.ccrlp.com.
Cautionary Statements
Certain statements in this press release, including with respect
to the expected suspension and potential subsequent reinstatement
of the quarterly cash distributions, the amount of quarterly cash
distributions and our financial condition and liquidity, are
"forward-looking statements" (as defined in Section 21E of the
Securities Exchange Act of 1934, as amended). With the exception of
historical matters, the matters discussed in this press release are
forward-looking statements that involve risks, assumptions and
uncertainties that could cause actual results to differ materially
from projected results. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. When we use the words "anticipate," "believe,"
"could," "continue," "estimate," "expect," "intend," "may," "plan,"
"predict," "project," "should," "will," or their negatives, or
other similar expressions, the statements which include those words
are usually forward-looking statements. When we describe strategy
that involves risks or uncertainties, we are making forward-looking
statements. We have based these forward-looking statements on our
current expectations and assumptions about future events. While our
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. Specific risks, contingencies and
uncertainties are discussed in more detail in our filings with the
Securities and Exchange Commission. The forward-looking statements
in this press release speak only as of the date of this press
release and CCR disclaims any intention or obligation to update
publicly any forward-looking statements, whether in response to new
information, future events, or otherwise, except as required by
applicable law.
Contacts:
Investor:
Mitesh Thakkar, (724) 416-8335
miteshthakkar@consolenergy.com
Media:
Zach Smith, (724) 416-8291
zacherysmith@consolenergy.com
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SOURCE CONSOL Coal Resources LP