Consol Energy’ acquisition of Dominion Resources’ Appalachian business for $3.5 billion in 2010 is proving to be a real boon for the company. Consol first announced a $3.5 billion JV with Noble Energy in the Marcellus Shale and more recently announced a $593 million JV with Hess in the Utica Shale. The company has not released what it has invested since acquiring the Dominion assets, but I can do simple math. That’s over $4.0 billion from outside parties to buy a percentage of the companies oil & gas assets.
Eighteen months ago, Consol Energy Inc. bought Dominion Resources Inc.’s Appalachian natural gas properties for $3.5 billion, giving the coal producer a big position in the Marcellus Shale natural gas field.
At the time, Wall Street disapproved. Consol’s shares fell more than 9 percent.
Consol looks clever now.
The Canonsburg, Pa., company announced Wednesday it would receive $593 million from Hess Corp. for a joint venture to explore and develop Consol’s 200,000 acres of Utica Shale in Ohio, much of it acquired from Dominion.
The Hess deal comes a month after Consol signed a $3.4 billion joint venture with Noble Energy Inc. of Houston to develop about 663,500 acres of Marcellus Shale leases in West Virginia and Pennsylvania, much of it former Dominion property.
Read the full news article at philly.com