Consol Energy Acquires MCN Energy Group Properties for $169 Million

Strategic Insights -

Consol Energy Inc. has made a significant move in the natural gas production market by acquiring certain properties from MCN Energy Group Inc. for $169 million in cash. This acquisition makes Consol the largest gas producer in Virginia, with a combined natural gas production of 90 million cubic feet per day (mmcfd). The properties acquired include Buchanan Production Company, MCNIC Oakwood Gathering Inc., and a 50 percent interest in Cardinal States Gathering Company.

Key Takeaways:

  • Consol Energy Inc. will purchase Buchanan Production Company, MCNIC Oakwood Gathering Inc., and a 50 percent interest in Cardinal States Gathering Company from MCN Energy Group Inc. for $169 million in cash.
  • The acquisition includes approximately 90 million cubic feet per day (mmcfd) of natural gas production, making Consol the largest gas producer in Virginia.
  • Buchanan Production Co. produces more than 70 mmcfd of pipeline-quality methane gas from over 350 wells, holding an estimated 276 billion cubic feet of proved coalbed methane gas reserves.
  • Oakwood Gathering owns 145 miles of gathering lines and transports gas to Cardinal States Gathering Co.
  • Cardinal States Gathering Co. operates two pipelines with a total length of 80 miles, transporting gas to the Columbia Transmission System.
  • Consol Energy, Inc. is the largest producer of coal east of the Mississippi River.

Statistics:

  • The acquisition price of $169 million in cash.
  • Combined natural gas production of 90 million cubic feet per day (mmcfd).
  • Buchanan Production Co. produces more than 70 mmcfd of pipeline-quality methane gas.
  • Estimated 276 billion cubic feet of proved coalbed methane gas reserves held by Buchanan Production Co.
  • 145 miles of gathering lines owned by Oakwood Gathering.
  • 80 miles of pipelines operated by Cardinal States Gathering Co.
  • Consol Energy, Inc. has a 25 percent stake in Cardinal States Gathering Co.

Sources:

  • "Consol Energy Inc. Acquires MCN Energy Group Properties for $169 Million" (King Publishing Group, 2000)