BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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CNX Gas (CXG)

It's only natural that amid a strained energy market, CNX Gas should see its profits soar. But as consumers demand ever more energy -- including cleaner forms like natural gas -- the Pittsburgh oil and gas provider is doubling its capital expenditures over the next three years to expand its vast reserves well into Pennsylvania. CNX Gas has seen 58.5% average annual growth in profits since 2002, which it attributes to its low-cost structure. Its 6.5 billion reserves across mostly the Appalachian Basin contain some of the gassiest coal in the Western hemisphere and generated $613 million in revenue last year. A decade without major accidents has also kept costs low. After a spinoff from Console Energy in June, 2005, CNX Gas's shares have risen 36% since March of this year.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

4,298.7

Sales*
($ Millions)

655.2

Sales Growth
(3-yr. avg. annual)

61.9 %

Profits*
($ Millions)

121.5

Profit Growth
(3-yr. avg. annual)

58.5 %

Return on Inv. Capital (3-yr.)

11.5 %

Share Price
12-Mo. Hi/Lo

31/20

Share Price
As of 4/28/06

29

Return on Equity

16.3 %

P/E Ratio

36

No. of Employees

134

Industry Integrated Oil & Gas
CURRENT
MARKET INFO

CXG >

COMPANY WEB SITE >
Location South Park, Pa.
Phone 412 854-6719
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

CNX Gas engages in the exploration, development, and production of natural gas in the Appalachian Basin of the U.S. The company also develops coal-bed methane (CBM). It holds rights associated with CBM for 4.5 billion tons of proved coal reserves in northern Appalachia, central Appalachia, the Illinois Basin, and other western basins. As of Dec. 31, 2005, the company had the development rights to approximately 704,000 net CBM acres throughout the Appalachian Basin. In addition to its CBM operations, the company participates in two joint ventures that involve in conventional development opportunities on approximately 399,000 gross acres throughout the Appalachian Basin. As of Dec. 31, 2005, the company had 1,130.4 billion cubic feet equivalent of net proved reserves. As of the above date, it operated 1,862 net wells, 952 miles of gathering lines, and various compression stations. CNX Gas markets its gas to third party gas marketers and various other counterparties. The company's production partners include Columbia Natural Resources, LLC; New River Energy, LLC; Kelly Oil and Gas, Inc.; Excelsior Exploration Corporation; KWR Ventures, LLC; and Ceja. It also owns a 50% interest in an 88-megawatt, gas-fired electric generating facility in Virginia near its gas production facilities, through a joint venture with Allegheny Energy Supply. The company is based in South Park, Penn. CNX Gas is a subsidiary of CONSOL Energy, Inc.


Data provided by Capital IQ
 
Nicholas J. DeIuliis

Nicholas J. DeIuliis, 37

Chief Executive Officer, President and Director


Total Compensation*

$ 1,381,803

Total Options Value*

$ 1,337,035

* Fiscal Year 2005

DEGREES HELD
Duquesne University - JD, Duquesne University - Master's Degree, Pennsylvania State University - University Park - Bachelor's Degree


Executive Bio

Nicholas DeIuliis has been employed at CNX Gas in the positions of CEO, president, and director since August, 2005. He was previously employed at CONSOL Energy as the senior vice-president, strategic planning.


Management Team

Key Executives

Nicholas J. DeIuliis; Ronald E. Smith; Gary J. Bench; Stephen W. Johnson

Board Directors

J. Brett Harvey; James E. Altmeyer; Raj K. Gupta; Nicholas J. DeIuliis; Philip W. Baxter; John R. Pipski; William J. Lyons


Executive Data provided by Capital IQ