Alpha Natural Resources is cashing out of a joint venture and seeing an excellent return on the investment.
The coal company is exchanging its 50% interest in Alpha Shale Resources for $300-million. $200 million will be in the form common stock of Rice Energy at the company's initial public offering. Alpha is getting the other $100-million in cash.
This comes from a joint venture Alpha and Rice Energy entered into in 2010 to develop a portion of Alpha's Marcellus natural gas holdings in Greene County, Pennsylvania.