In the past few months several energy companies have expanded their holdings of natural gas resources. Exxon Mobil, for instance, bought natural gas company XTO Energy in December for $41 billion, while Total SA of France and BP PLC of Britain have purchased rights to gas fields in Texas. Earlier this week, a private company anonymously shelled out $320 million for Petrohawk Energy Corp.’s rights to gas fields in Louisiana.

 

Monday brought news of Consol Energy’s $3.48-billion purchase of Dominion Resources’ (D) natural gas and oil exploration and production business. As part of the deal, the Pittsburgh-based coal and natural gas producer will acquire 1.46 million oil and gas acres and 9,000 wells that are forecasted to generate 41 billion cubic feet of gas equivalent this year. With the purchase, Consol becomes one of the largest participants in the Marcellus shale formation.

 

Dominion, which is part of our Income Portfolio, wanted to focus more on areas of its business that offer regulated rates of return.