Phillips sells coal interests for $191 million

Phillips Petroleum has sold its coal interests in three separate transactions. Total cash from the transactions is $191 million, representing a $48 million after-tax gain.

Phillips sold its 50 percent interest in the Walnut Creek Mining Company joint venture in Texas to Kiewit Construction Company, headquartered in Omaha, Nebraska. Phillips sold its 50 percent interest in the Dry Fork coal assets in Wyoming to Western Fuels-Wyoming, located in Denver.

The balance of the company’s coal interests, located in Texas, Louisiana and Mississippi, were sold to The North American Coal Corporation, headquartered in Dallas.

Portions of these transactions are expected to add approximately $18 million in net income to Phillips’ third-quarter earnings, and an estimated $30 million in the fourth quarter.

Cash proceeds from these transactions and other cash flows received in the third quarter helped reduce debt to $7.9 billion by the end of the quarter. The company will use the proceeds of the fourth-quarter transaction to pay down debt and for other corporate purposes.

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