Citi Has Buy On CONSOL Energy

Citi Investment Research is out with a research report on CONSOL Energy CNX and it has a Buy rating and a $57 price target on shares. In a note to clients, Citi Investment Research writes, "This JV is a positive for CNX shareholders as it allows the company to monetize assets without impacting their gas production target. Recall that CNX originally purchased Dominion's E&P assets for roughly $3.5 bln in 2Q10, which included 41 Bcf of conventional annual production with 1.0 Tcf of proved reserves, 491k Marcellus acres, 470k Utica acres and 300k Huron acres. We estimate that the NPV of this JV is roughly $2.4 bln but there are other assets from the Dominion deal that can be monetized and CNX is still targeting 350 Bcf net to the company in 2015." Shares of CNX gained 17 cents yesterday to close at $42.59.