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

Search for Jobs

Index Last Change % Change
Dow 18,232.02 -53.72 -0.29%
Nasdaq 5,089.36 -1.43 -0.03%
S&P 500 2,126.06 -4.76 -0.22%
Treasuries 2.22 0.03 1.37%
Data as of 9:24pm ET
Company Price Change % Change
Bank of America Corp... 16.75 0.02 0.12%
Apple Inc 132.54 1.15 0.88%
Hewlett-Packard Co 34.76 0.93 2.75%
AT&T Inc 34.71 -0.36 -1.03%
Microsoft Corp 46.90 -0.52 -1.10%
Data as of 4:01pm ET
Sponsors

Sections

The record airbag recall and the GM ignition switch recalls has resulted in a huge percentage of cars on the road today having been recalled. More

The True Cost, a new documentary, chronicles the evils of the clothing industry and asks us to stop buying so much cheap stuff More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More