Arch Resources and Consol Energy are combining to form a single coal producer valued at more than $5 billion, the companies announced Wednesday, the latest consolidation in a deal-happy energy sector.

Arch shareholders will get 1.326 shares of Consol common stock for each share of Arch they own. Consol shareholders will own about 55% of the new company -- to be called Core Natural Resources -- and Arch shareholders will own about 45%.

Cole Natural Resources will be based in Canonsburg, Pa., just southwest of Pittsburgh, which is the current headquarters of Consol Energy. Arch is based in St. Louis.

Consol Energy CEO and chairman will be the company's executive chairman and Arch CEO Paul Lang will be its chief executive.

If approved by shareholders and regulators, the deal is expected to close in the first quarter of 2025.

Shares of Arch rose 5.9% Wednesday, while shares of Consol rose 7.9%.

The use of coal in the United States has fallen almost every year since 2005 as energy plants switch over to natural gas. The U.S. consumed about 426 million short tons of coal last year. Annual coal use in 2005 was more than a billion short tons. That has led to mine closures and job cuts across the sector.

Coal companies that have survived need to lower costs and that can be achieved both through new technology, and mergers like the one announced by Consol and Arch Wednesday.

Arch and Consol said that Core Natural Resources will benefit from between $110 million and $140 million of annual cost and operational synergies within 18 months of the deal's closing.

Arch had revenue of $3.1 billion in 2023, while Consol brought in $2.5 billion in that same year.

"Our assets are highly complementary, resulting in increased diversification across coal types, end uses, and geographies," said Brock of Consol Energy.

There has been a surge in big energy takeovers this year, though mostly in the oil and gas sector.

The oil and gas sector thrived in the wake of Russia's invasion of Ukraine in 2022, and while oil prices have slipped, there has been a surge in mergers between energy companies flush with cash in recent years.

In May, ConocoPhillips said it was buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion. That came just weeks after Exxon closed its $60 billion acquisition of Pioneer Natural Resources. In July of last year, Exxon announced that it would pay $4.9 billion for oil and gas producer Denbury Resources.

Chevron's proposed $53 billion acquisition of Hess is still waiting for regulatory review.