Chevron Buying Atlas Energy for $3.2 Billion
November 9, 2010
The Associated Press reports, Chevron will buy natural gas producer Atlas Energy Inc. with both cash and stock. Including debt of about $1.1 billion, the deal is worth $4.3 billion. Atlas is a big player in the Marcellus shale of Western Pennsylvania and elsewhere. The deal also includes natural gas assets in the Utica shale area. Chevron expects to gain 850 billion cubic feet of proven natural gas reserves that can produce 80 million cubic feet of natural gas per day. It also will take a 49 percent stake in Laurel Mountain Midstream LLC, a company that owns natural gas gathering lines in the Marcellus region. Atlas said that it plans to sell its controlling interest in Atlas Pipeline Holdings before the Chevron deal is completed.