BMO Capital Markets Reiterates Perform, Target of $45 on CONSOL Energy
BMO Capital Markets maintains its Market Perform rating and $45 target price on CONSOL Energy (NYSE: CNX) as fourth quarter guidance is raised on Marcellus Shale success.
BMO says, “CONSOL announced that its Gas Division attained production of 500MMcf/d on a gross basis (before royalty and JV volumes are deducted) as a result of continued progress in its Marcellus Shale program. The company raised Q4/11 production guidance from 36-38Bcf to 38-40/Bcf, above BMO Research's estimate of 37Bcf. BMO does not expect the improvement to materially impact NPV or Q4/11 EPS. However, the production growth is an indication that CONSOL's JV with Noble Energy has realized improvements in productivity, offsetting the reduction in CONSOL's share of Marcellus Shale production volumes.”
CNX closed at $40.80 per share on Tuesday.
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