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Chevron Acquires Atlas Energy for $4.3 Billion


Last week Atlas Energy cancelled their third quarter 2010 conference call due to an announcement made the same day that they were bought by the global player Chevron Corporation.  The price for the deal is valued at $4.3 billion which includes all of Atlas Energy’s current outstanding dept.  Atlas Energy shareholders received $43.34 per share which is a 37% premium to the closing price on November 8th, the day before the deal was announced.  Shareholders will get $38.25 per share cash and receive a pro-rata share of the distribution of over 41 million units of Atlas Pipeline Holding, L.P (AHD).  Prior to the Chevron deal, Atlas Holding agreed to acquire approximately 175 Bcfe of natural gas reserves from Atlas Energy, certain other energy assets, and revenues from investment management business owned by Atlas Energy for considerations of $250 million paid to Atlas Energy.

According to Atlas Energy’s latest presentation at the DUG East Conference 6 days before the acquisition announcement the Company holds over 630,000 gross acres in prospective Marcellus Shale with approximately 320,000 in a JV with Reliance Industries.   The below is a slide from that same presentation supplying a quick profile of Atlas Energy and their positions around the US.


To learn more visit the Atlas Energy folder in the Unconventional Updates in DI’s DNA.

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