Chevron in $4.3 billion deal for shale firm

By Aaron Smith, staff writer


NEW YORK (CNNMoney.com) -- Chevron Corp., aiming to expand its holdings in the Marcellus Shale natural gas region of Pennsylvania, said Tuesday it will acquire Atlas Energy Inc. for $4.3 billion.

The deal includes a cash purchase of $3.2 billion and the acquisition of $1.1 billion worth of Atlas' debt, said Chevron.

Chevron vice chairman George Kirkland said the acquisition will provide his company with a foothold in the Marcellus region.

"We are acquiring a company that has one of the premier acreage positions in the prolific Marcellus," said Kirkland, in a press release.

Atlas' shares are being valued at $43.34 per share, said Chevron, a 37% premium from its Monday closing price.

"All of our shareholders should benefit from this sale and upon its completion, Atlas will have achieved a return of well over 800% since its initial public offering less than 6-1/2 years ago," said Edward Cohen, chief executive of Atlas Energy, in a press release.

Chevron's (CVX, Fortune 500) share price slipped slightly in pre-market trading. Atlas' (ATLS) share price soared by more than one-third.

Companies specializing in natural gas production rose in pre-market trading, on speculation that the Chevon-Atlas merger means good news for the sector.

Range Resources (RRC) rose more than 5% about one hour before the opening bell. Cabot Oil & Gas (COG) and Southwestern Energy (SWN) were both up more than 4%.Chesapeak Energy Corp. (CHK, Fortune 500) gained about 2%. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,197.14 -219.71 -1.26%
Nasdaq 4,641.33 -42.08 -0.90%
S&P 500 1,997.71 -23.54 -1.16%
Treasuries 1.68 -0.08 -4.34%
Data as of 3:51pm ET
Company Price Change % Change
Bank of America Corp... 15.24 -0.19 -1.20%
Apple Inc 117.57 -1.33 -1.12%
Microsoft Corp 40.61 -1.40 -3.34%
AT&T Inc 33.07 0.11 0.33%
Facebook Inc 76.15 -1.85 -2.37%
Data as of 3:35pm ET

Sections

Super Bowl ads are getting more expensive every year. But are companies wasting money? In the social media era, tweets and viral videos can also get a company noticed. More

The Federal Trade Commission accuses two companies with failing to disclose the onerous terms of no-cost loans made using a borrower's car title as collateral. More

Here's where Seahawks and Patriots fans eat, shop, and play, according to data from ad tech startup PlaceIQ. More

Wix is advertising in the Super Bowl -- but it's just the latest tech unknown to make its debut there. More

401(k) balances reached a record high last year, thanks to a soaring stock market and larger contributions from workers participating in the savings plans, according to Fidelity. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.