Analysts view gas buy as a positive for Consol

摘要

Consol Energy is making a wise bet by expanding its natural gas operations with the acquisition of Dominion Resources’s gas holdings, Wall Street analysts said last week. Consol said March 15 that its planned purchase of Dominion’s Appalachian oil and natural gas production for $3.475 billion will make it the leading gas producer in the Appalachian basin and the third-largest holder of acreage within the Marcellus Shale. FBR Capital Markets analysts, in a March 16 investors’ note, said they came to the conclusion “that management is making a reasonable bet on long-term natural gas prices.” FBR gave Consol an “outperform” price target of $67, but noted “all growth assets are, by definition, dilutive on a oneto two-year view.”