CNX Resources Corp. agreed to buy out its midstream affiliate, creating the “lowest-cost Appalachia producer,” the Pittsburgh-based E&P company said July 27.

Under a merger agreement, CNX Resources will purchase the remaining public stake, comprising about 42.1 million outstanding common units, of CNX Midstream Partners LP. Total consideration for the all-stock transaction, which is valued at roughly $357 million, is about $8.47 for each outstanding CNX Midstream unit.

The exchange ratio of 0.88 CNX shares per CNX Midstream unit represents a 15% premium to the 30-day average exchange ratio or a 28% premium to close on July 24, according to analysts with Tudor, Pickering, Holt & Co. (TPH).

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