Chevron Acquiring Atlas Energy For $4.3 Billion

December 2010 Vol. 237 No. 12

Chevron will acquire Atlas Energy for cash of $3.2 billion and assumed pro forma net debt of $1.1 billion in a deal that will provide Chevron with an attractive natural gas resource position primarily located in southwestern Pennsylvania’s Marcellus Shale.

“The Atlas Energy assets further advance Chevron’s global shale gas position, complementing the company’s recent entrance into shale gas opportunities in Poland, Romania and Canada,” said George L. Kirkland, Chevron Vice Chairman.

“We are acquiring a company that has one of the premier acreage positions in the prolific Marcellus. The high quality resource, competitive cost structure in the Marcellus, strong growth potential of the asset base and its proximity to premier natural gas markets make this targeted acquisition a compelling investment.”

Chevron will gain Atlas Energy’s estimated 9 Tcf of natural gas resource, which includes 850 Bcf of proved natural gas reserves with 80 MMcf/d of 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 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.

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