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US Coal companies merge: Murray Energy acquires controlling interest in Foresight Energy GP LLC for $1.395B

Murray Energy and Foresight Reserves, LP (the current owner of Foresight Energy GP) have entered a definitive agreement for a transaction through which Murray Energy will acquire a controlling interest in Foresight Energy LP and FEGP to create a US coal mining company controlling more than nine (9) billion tons of coal reserves with approximately 87.5 million tons of combined production last year, according to the companies’ respective annual reports.

(Murray with ~65 million, Foresight with 22.5 million. As a point of comparison, Peabody Energy, the world’s largest coal company, with operations in the US and Australia, produced 227.2 million tons, about 83% of that (189 million tons) in the US.)

Christopher Cline, the founder of Foresight Energy, will remain a significant investor in Foresight Energy, maintaining a twenty-two and five tenths percent (22.5%) equity interest in FEGP and an approximately thirty-five percent (35%) interest in FELP and will be actively involved as a member of the Board of Directors of that Company.

Murray Energy Corporation and its subsidiary companies currently operate 13 active coal mines, consisting of 13 underground longwall mining systems and 46 continuous mining units in Ohio, Illinois, Kentucky, Utah, and West Virginia.

Foresight has three fully developed longwalls in place and has the ability to add up to six additional longwall systems without increasing its base.

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