Consol Energy Inc., a coal and natural gas producer, agreed to buy Dominion Resources Inc.'s natural gas and oil exploration and production business for $3.48 billion to expand Marcellus Shale reserves, Bloomberg News reported today.
The sale includes rights to 491,000 acres in West Virginia and Pennsylvania, which will increase Consol's gas reserves by 50 percent to 3 trillion cubic feet from 1.9 trillion, the Pittsburgh-based company said this morning in a statement.
Consol is expanding into direct natural gas production after years of developing coal-bed methane from its mining properties. With the Dominion acquisition, Consol gets 9,000 producing wells that are expected to produce 41 billion cubic feet of natural-gas equivalent this year.
Upon completion of the transaction, Consol's natural gas business will account for about 35 percent of total revenue.
-- Bloomberg News
Email
Facebook
Google
Twitter
Favorites
More
Advertisement