CONSOL Energy Inc. (NYSE: CNX) announced this morning that it sold a fifty-percent JV interest in nearly 200,000 Ohio Utica Shale acres to Hess Corporation (NYSE: HES) for $593 million. This equates to $6,000 per acre (without a discount applied). The purchase price includes an up front payment of $59 million and $534 million in a “drilling carry” whereby HESS pays for half of CNX's share of investment.
Is this transaction value unique to the acreage or do you believe it is representative of pricing on future Utica transactions?
Thursday, September 8, 2011
CNX Deal Bellweather for Future Utica Valuations?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment