The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
Chevron to Acquire Atlas
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WILLIAM FEATHERSTON, UBS Securities LLC
(11/12/2010)
"Chevron has agreed to acquire Atlas Energy for $3.2 billion in cash and the assumption of $1.1 billion in debt; ATLS shareholders will also receive distribution of 41 million AHD units worth $5.09/share. Chevron is acquiring 850 Bcfe of proved reserves, 80 MMcfe of production and 486,000 net acres in the SW Marcellus Shale, midstream infrastructure and acreage in the Utica (623,000) and Collingwood (100,000) shales. Chevron has $11 billion in cash to easily fund the deal. We had realized Chevron's interest in doing a small acquisition but are surprised by this transaction given Chevron's bearish view on U.S. natural gas. Having said that, it appears to be acquiring a rapidly growing asset for a fairly inexpensive price. Applying a moderate value for the proved reserves, production and non-Marcellus acreage, it appears Chevron is acquiring Atlas' core SW Marcellus position (270,000 acres) for just ~$5,200/acre." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
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