Consol , which produces coal and natural gas, said the purchase would bolster its proved reserves of gas by more than 50 percent to about 3 trillion cubic feet and double its potential reserves to about 41 trillion cubic feet.
Consol plans to raise about $4 billion through debt and equity to finance the purchase and development of the property.
Under the deal, Consol will acquire 1.46 million oil and gas acres from Dominion along with more than 9,000 wells that are expected to produce more than 41 billion cubic feet equivalent in 2010.
The deal is expected to close on April 30, and is expected to account for as much as 35 percent of Consol ’s total revenue.
Consol’s shares fell 5.7 percent in premarket trade, while Dominion’s shares rose 2 percent.
Consol was advised by Bank of America Merrill Lynch and the law firms Wachtell, Lipton, Rosen & Katz and Akin Gump Strauss Hauer & Feld; Bank of America andPNC Financial Services Group are providing financing as well. Stifel, Nicolausadvised Consol’s board.