Chevron in $4.3 billion deal for shale firm

By Aaron Smith, staff writer

NEW YORK ( -- 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

Index Last Change % Change
Dow 24,946.51 72.85 0.29%
Nasdaq 7,481.99 0.25 0.00%
S&P 500 2,752.01 4.68 0.17%
Treasuries 2.85 0.02 0.78%
Data as of 10:19pm ET
Company Price Change % Change
Chesapeake Energy Co... 3.06 0.04 1.32%
General Electric Co 14.31 -0.05 -0.35%
Bank of America Corp... 32.17 0.07 0.22%
Ford Motor Co 11.15 0.08 0.72%
Micron Technology In... 60.58 1.74 2.96%
Data as of Mar 16


The European Union has published a long list of American products that it could target if President Donald Trump moves forward with new tariffs on steel and aluminum. More

"It's like competing in an Olympic race wearing lead shoes," Elon Musk, referring to trade rules with China, tweeted to President Donald Trump. More

Good news for procrastinators: You get two extra days to file your federal income taxes. April 15 falls on a weekend and April 16 is a public holiday in the District of Columbia. More