The acquisition includes approximately 1,300 existing conventional gas wells, pipeline infrastructure and related equipment located adjacent to the company’s existing underground mining and coal bed methane business in Tuscaloosa County.
Joe Leonard, interim CEO of Walter Energy, said: “We see this as a strategic acquisition related to growing our premium coking coal operation.
“While this acquisition more than doubles our annual coal bed methane production and is expected to be a stable generator of earnings and cash flows into the future, it is more important to us because it helps ensure that future coal production areas will be properly degasified, thereby improving the safety and operational efficiency of our existing and future underground coking coal production.”
Walter Energy is a US-based producer and exporter of premium hard coking coal for the global steel industry and also produces steam coal and industrial coal, metallurgical coke and coal bed methane gas.
