Chevron is set to acquire Atlas Energy

Chevron Corporation and Atlas Energy, Inc. have announced that Chevron would acquire Atlas Energy for cash of US$ 3.2 billion and assumed pro forma net debt of approximately US$ 1.1 billion. The acquisition will provide Chevron with an attractive natural gas resource position primarily located in southwestern Pennsylvania's Marcellus Shale. The acquisition is subject to certain Atlas Energy restructuring transactions, approval by Atlas Energy shareholders and regulatory clearance.

Atlas Energy assets

When the transaction closes, Chevron will gain Atlas Energy's estimated 9 trillion ft³ of natural gas resource, which includes approximately 850 billion ft³ of proved natural gas reserves with approximately 80 million ft3 of daily natural gas production. The assets in the Appalachian basin consist of 486 000 net acres of Marcellus Shale; 623 000 net acres of Utica Shale; and a 49% interest in Laurel Mountain Midstream, LLC, a joint venture which owns over 1000 miles of intrastate and natural gas gathering lines servicing the Marcellus. Assets in Michigan include Antrim producing assets and 100 000 net acres of Collingwood/Utica Shale.

Marcellus joint venture

In April 2010, Atlas Energy entered a joint venture to develop its Marcellus assets with a wholly owned affiliate of Reliance Industries Limited. Under the agreement, Chevron will assume Atlas Energy's role as operator with 60% participation in the Marcellus joint venture, under the original agreement terms between Atlas Energy and Reliance. Reliance will continue to fund 75% of the operator's drilling costs, up to US$ 1.4 billion.

Read the article online at: https://www.oilfieldtechnology.com/exploration/11112010/chevron_is_set_to_acquire_atlas_energy/