A Play On The Marcellus Shale
February 16, 2010 10:30 AM
Earlier this morning Anadarko (NYSE: APC) announced a JV with Mitsui & co for $1.4 billion to buy a minority stake in the Marcellus Shale. To read more about this transaction click here. The transaction provides great opportunities for other companies that operate in the Marcellus Shale to possibly cash in on their property.
Chesapeake Energy (NYSE: CHK) is the largest driller in the Marcellus Shale. The company did sell a 32.5% interest in the shale back in late 2008 to StatoilHydro (NYSE: STO). CHK does have opportunities in the four other large shale’s that they operate within the United States.
Other plays on the excitement from the Marcellus Shale include: Exco Resources (NYSE: XCO), EOG Resources (NYSE: EOG), Equitable Resources (NYSE: EQT), Range Resource (NYSE: RRC), CNX Gas (NYSE: CXG), and Cabot Oil & Gas (NYSE: COG). Any of the stocks mentioned could end up creating joint ventures to cash in on the land that they own, or could be bought outright like XTO Energy (NYSE: XTO) was by Exxon Mobile (NYSE: XOM).
