Consol Seeks To Acquire Remaining Interest In Appalachian E&P CNX

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
363MM
Description

Acquired remaining 17% WI in subsidiary with interests in PA, WV, VA.

Coal producer Consol Energy Inc., Pittsburgh, (NYSE: CNX) has completed the acquisition of its E&P subsidiary CNX Gas Corp. (NYSE: CXG) for approximately $363 million, expanding the company's gas footprint in Appalachia.

The acquired assets include primarily coalbed-methane interests in the Appalachian and Illinois basins in Pennsylvania, West Virginia and Virginia. CNX Gas had 1.9 trillion cubic feet equivalent of net proved reserves as of year-end 2009.

Consol will pay $38.25 in cash per CNX share for approximately 9.5 million shares, representing a 24% premium based on the closing price of CNX Gas on March 19, and a 46% premium based on the closing price of CNX Gas on March 12, the last trading day before Consol announced it was purchasing the Appalachian E&P business of Richmond, Virginia-based Dominion Resources Inc. (NYSE: D) for roughly $3.5 billion in cash.

Consol is funding the acquisition with cash on hand, debt and equity offerings. CNX Gas common stock will no longer trade on the New York Stock Exchange.