Tomahawk, WI 12/10/2013 (BasicsMedia) – Alpha Natural Resources, Inc. (NYSE:ANR), a leading coal producer in the United States, announced yesterday that it has entered into an agreement with Rice Energy according to which it will exchange its 50% interest in Alpha Shale Resources Joint Venture for $100 million in cash and $200 million of Rice common stock in planned IPO (Initial Public Offering) of Rice Energy, for a total consideration of about $300 million. In the year 2010, Rice Energy and Alpha Natural Resources entered into the 50-50 joint venture to develop a portion of Marcellus natural gas holdings of Alpha in Greene Pennsylvania.

Words of Alpha’s Chairman and CEO

Kevin Crutchfield, the Chairman and Chief Executive Officer of Alpha Natural Resources, Inc. (NYSE:ANR), commented that the company is very pleased with the value created by their joint venture with Rice Energy in a very short period of time. He said that the company believes that this achievement shows the operational excellence of the Rice Energy team and the quality of the Marcellus area.

Kevin also said that the company has committed about $30 million in cash and approximately 7,500 acres to Alpha Shale, and he believes that an excellent return on their investment will be provided to Alpha because of this transaction. He said that the company will add a significant amount of cash to their balance sheet upon the completion of IPO of Rice Energy. Along with it, it will also maintain a good ownership position in the growth opportunities provided by the Rice Energy platform.

Details Of Transaction

As it was mentioned above, Alpha Natural Resources, Inc. (NYSE:ANR) will exchange its 50% interest in Alpha Shale Resources JV for $300 million of consideration. Along with this, Alpha will be entitled to appoint Kevin Crutchfield, the CEO of Alpha, to the Board of Directors of Rice Energy in connection with the IPO of Rice Energy. The transaction will close concurrent to the closing of Rice Energy IPO.

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