Jefferies Reaffirms Buy Rating on Consol Energy

Jefferies reaffirms its Buy Rating on Consol Energy CNX following a visit to one of CNX's Marcellus Shale operations in Pennsylvania. Jefferies writes, Marcellus Shale continues to draw interest from the US and international oil and gas producers. Companies such as Exxon Mobil, Shell, Reliance and Chevron. Consol's vast land and mineral footprint as well as its extreme local knowledge surrounding Western PA, Northern WV and Eastern Ohio could prove valuable as management unlocks its rich asset base. We believe management has an ability to add over 100 wells in the basin during 2011 at reasonable costs and efficiency." Their price target of $55/share reflects 7x EV/EBITDA multiple on their 2012 forecasted EBITDA of $2.2 billion and 12.5x 2012 EPS.; in line with historical valuation. CNX closed Tuesday at $39.87.