$24 billion (market cap) energy company Dominion Resources (D) is up 26 cents, or 0.7%, at $39.95, after the company this morning announced it will sell its oil and gas exploration and production business in Appalachia to $9 billion (market cap) natural gas developer Consol Energy (CNX) for $3.48 billion in cash, with a right to continue to explore in the Marcellus Shale natural gas formation in West Virginia.
Dominion will use the after-tax proceeds of $2.2 billion to $2.4 billion to offset equity needs for this year and next, pay its utility customers in Virginia in a settlement over rates, and to buy back shares, the company said.
Shares of Consol, meanwhile, are down $4.66, or 9%, at $49.65. Consol said the deal will “substantially increase its natural gas reserves and production capacity.” The company is the second-largest holder of coal reserves among U.S. publicly traded companies, it said.
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