Raymond James Starts CNX Gas at Strong Buy

Says the Appalachian coal producer CNX's recent spin-off is a unique pure-play on the growing coalbed methane market

Raymond James started covering CNX Gas (CXG ) with a strong buy, explaining that the Appalachian coal producer CNX's recent spin-off is a unique pure-play on coalbed methane (CBM.)

Analyst Wayne Andrews thinks coalbed methane is one of fastest growing segments of the North American natural gas market. He says CNX's undeveloped CBM acreage alone contains about 2,400 drilling locations, and conventional gas acreage adds another 6,400. He says the company's drilling success rates over the past 3 years have averaged virtually 100%, helping lead to moderate costs. He has a $31 stock price target, but given the company's above-average growth prospects, he believes upside to the target is likely.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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