Mergers & Acquisitions Deal Analysis - Consol Energy to Acquire Remaining Shares of CNX Gas by GlobalData

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									             Mergers & Acquisitions Deal Analysis - Consol Energy to
                     Acquire Remaining Shares of CNX Gas
       Reference Code: GDGE0113M&A                                                                                                     Publication Date: MAY 2010

                                                                                                  2         Consol Energy to Acquire Remaining
       1         Table of Contents                                                                          Shares of CNX Gas
       1  Table of Contents ...............................................................1
        1.1   List of Tables ...............................................................1     2.1       Deal Overview
        1.2   List of Figures..............................................................1
       2 Consol Energy to Acquire Remaining Shares of CNX Gas 1                                       Table 1: Deal Overview
        2.1   Deal Overview .............................................................1            Deal Type                                    Asset Transactions
        2.2   Deal in Brief.................................................................1
        2.3   CNX Gas’ Legacy........................................................1                Deal Sub Type                             Minority Acquisition
        2.4   Consol Energy is Acquiring the Remaining Assets of                                      Deal Status                                         Announced
        CNX Gas in order to strengthen its natural gas operations ....2
        2.5   CNX Gas’ Assets Overview.........................................2                      Announced Date                                   Mar 19, 2010
        2.6   Sources of Finance .....................................................3               Source: GlobalData
        2.7   Consol Energy is Acquiring CNX Gas at a Discount as
        Compared to Other Recent US transactions..........................3
        2.8   Deal Financials............................................................5
        2.9   Detailed Target Information .........................................5              2.2       Deal in Brief
        2.10     Key Financials ........................................................5
        2.11     Share Price Information ..........................................5              Consol Energy, Inc. (Consol Energy) entered into an agreement
        2.12     Company Valuation multiples .................................5                   to commence a tender offer for the acquisition of all the shares
        2.13     Production and Reserves Information ....................6                        of CNX Gas Corporation (CNX Gas), at a price of $38.25 per
        2.14     Transaction Implied Values ....................................6                 share in cash. T. Rowe Price Associates, Inc., an investment
        2.15     Transaction Implied Values ....................................6                 banking firm, has agreed to tender its shares of CNX Gas’
        2.16     Detailed Acquirer Information .................................6
                                                                                                  common stock that its investment advisory clients own into the
       3 Appendix ............................................................................7
        3.1   About Energy eTrack...................................................7             offer.
        3.2   Methodology................................................................7         The tender offer price of $38.25 per share represents a 24%
        3.3   Contact Us ..................................................................8
                                                                                                  premium on the closing price of $30.80 on March 19, 2010, and
        3.4   Disclaimer ...................................................................8
                                                                                                  a 46% premium based upon the closing price of $26.23 on
       1.1      List of Tables                                                                    March 12, 2010. Consol Energy currently owns around 83.3%
                                                                                                  of the approximately 151 million shares of CNX Gas common
       Table 1: Deal Overview .............................................................1
                                                                                                  stock outstanding.
       Table 2:The US, E&P Assets Transaction and Acquisition
                Details, December 2009- March 2010.........................4                      Consol Energy plans to finance the acquisition of CNX Gas’
       Table 3: Financials of the Deal, 2010 ........................................5            shares by means of a combination of internally generated
       Table 4: Target Information .......................................................5
                                                                                                  funds, borrowings under its credit facilities and/or offerings of
       Table 5: Target’s Financial Information, 2010............................5
       Table 6: Target’s Share Price Information, 2010 .......................5                   securities. Consol Energy's intended offer would be made
       Table 7 Target’s Valuation Multiples Information, 2010 .............5                      directly to CNX Gas stockholders and would be subject to
       Table 8: Target’s Production and Reserves Information, 2010..6                             certain customary terms and conditions that must be satisfied or
       Table 9:Transaction Implied Values, 2010........................
								
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