A Big Corporate Overhaul at CNX Resources Corp Leads to a 13% Drop in November

A Big Corporate Overhaul at CNX Resources Corp Leads to a 13% Drop in November

The shares CNX Resources Corp. (NYSE: CNX) fell a massive 13% in November. And the vast majority of the drop occurred all at once on Nov. 29, when the stock fell from around $16 a share to $13.75 at the open of trading. This was definitely a news-driven move, but the market expected it and there was no negative information behind it. In fact, it was good news in many ways.

This is a bit confusing, so take a deep breath and read slowly.

Up until Nov. 29, CNX Resources Corp. was known as CONSOL Energy. For more than 100 years, CONSOL Energy was a coal miner. But over the past decade or so it had started to shift its focus toward natural gas. As part of that process, it created a master limited partnership called CNX Coal Resources LP. CONSOL was effectively selling its coal assets little by little to the partnership. The ultimate goal appeared to be to create two entities, one focused on coal and the other on natural gas.   

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Source: Fool.com