Sources: Chevron, Atlas
Chevron Corp. (NYSE:CVX) announced that its $4.3 billion acquisition of Atlas Energy has been completed following approval by Atlas stockholders.
"We look forward to welcoming the highly talented employees from Atlas Energy into the Chevron family," said Vice Chairman George Kirkland. "The assets provide Chevron with a solid position in the prolific Marcellus Shale, located in Southwestern Pennsylvania, and complement our global position in developing unconventional gas resources."
On November 8, 2010, Atlas Energy entered into a definitive agreement to be acquired by Chevron in a transaction valuing Atlas Energy at $4.3 billion. Upon closing, Atlas Energy shareholders will receive $38.25 in cash for each outstanding share owned upon the effective time of closing, and will also receive a pro-rata share of a distribution of over 41 million common limited partnership units of Atlas Pipeline Holdings, L.P. (NYSE:AHD).
Chevron is gaining Atlas Energy's estimated nine trillion cubic feet of natural gas resource, which includes approximately 850 billion cubic feet of proved natural gas reserves with approximately 80 million cubic feet 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 percent interest in Laurel Mountain Midstream, LLC, a joint venture which owns over 1,000 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.