May 17, 2016 - Alpha Natural Resources, Inc. (ANRZQ) today announced that Vantage Energy Appalachia II, LLC was named the successful bidder for certain oil and natural gas assets (collectively the "PLR Assets") in Southwest Pennsylvania owned by its subsidiary, Pennsylvania Land Resources, LLC.  Vantage's winning cash bid of $339.5 million far exceeded the previously announced stalking horse bid of $200 million for those same assets. 

"While we were not surprised with the interest the PLR Assets generated from operators in the region, the strategic sale of these assets will only help to maximize the value of the estate for the benefit of all stakeholders," said Alpha's Chairman and CEOKevin Crutchfield.  "We continue to forge ahead toward the final phase of our restructuring."

On February 8, 2016, Alpha filed a motion with the Bankruptcy Court requesting approval of procedures to govern a marketing and sale process for Alpha's core assets.  These procedures were designed to implement a fair and competitive process for all qualified parties to bid for the Debtors' coal and natural gas assets.  On March 11, 2016, the Court entered the Bidding Procedures Order approving the bidding and sales process.

Under the Bidding Procedures Order, interested potential purchasers were required to submit "Qualified Bids" for any of the Debtors' assets by May 9, 2016.  On April 12, 2016, Rice Energy Inc. announced that its affiliate, Rice Drilling B, LLC, had entered into a stalking horse asset purchase agreement with Pennsylvania Land Resources to acquire the PLR Assets, subject to higher and better offers from competing, qualified bidders. 

On May 16, 2016, the Debtors conducted an auction among five qualified bidders for the sale of the PLR Assets.  At the conclusion of the auction, the $339.5 million cash bid submitted by Vantage Energy Appalachia II, LLC was designated as the Successful Bid.  The Debtors also designated a bid with a cash purchase price of $335 million as the Next Best Bid.  U.S. Bankruptcy Court approval is required before the agreed-upon acquisition by Vantage Energy can close.  A hearing on this matter is currently scheduled for May 26, 2016.  Alpha was advised on this transaction by Jackson Kelly as corporate counsel,Jones Day as restructuring counsel‎, and Rothschild Inc. as Investment Banker. 

Alpha and certain of its wholly-owned subsidiaries filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code on August 3, 2015.  More information about Alpha's bankruptcy process and legal filings made with the Court to date can be found at www.kccllc.net/alpharestructuring.

About Alpha Natural Resources

Alpha Natural Resources is one of the largest and most regionally diversified coal suppliers in the United States.  With affiliate mining operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming, Alpha supplies metallurgical coal to the steel industry and thermal coal to generate power to customers on five continents.  Alpha is committed to being a leader in mine safety with our Running Right safety process, and an environmental steward in the communities where its affiliates operate.  For more information, visit Alpha's website.