Chevron to buy Atlas, gain Marcellus foothold

By OGJ editors
HOUSTON, Nov. 9
-- Chevron Corp. has agreed to acquire Atlas Energy, a Pittsburgh independent producer with a major land position in the Marcellus shale gas play, for $3.2 billion cash plus assumption of debt of $1.1 billion.

Chevron will acquire a gas resource estimated at 9 tcf, including 850 bcf of proved reserves, and about 80 MMcfd of production.

Atlas Energy’s Appalachian basin assets include 486,000 net acres in the Marcellus shale, 623,000 net acres in the Utica shale, and a 49% interest in Laurel Mountain Midstream LLC, which owns more than 1,000 miles of intrastate gas pipeline and gathering lines in the Marcellus play.

Atlas Energy also has production from the Antrim shale in Michigan and 100,000 net acres in the Collingwood-Utica shale.

Chevron will become operator of the Marcellus joint venture Atlas Energy formed in April with an affiliate of Reliance Industries Ltd., Mumbai, and will assume the acquired company’s 60% share of the venture. Reliance will still fund 75% of the operator’s drilling costs up to $1.4 billion (OGJ Online, Apr. 21, 2010).

Before completion of the deal, Atlas Energy will distribute units of Atlas Pipeline Holdings LP to shareholders and acquire a 49% interest in Laurel Mountain Midstream from the pipeline partnership for $403 million. It will sell all investment partnerships, 175 bcf of gas reserves, and certain other assets to Atlas Pipeline Holdings for $30 million in cash and $220 million in new units in the pipeline partnership.

Related Articles

Chevron unit farms into Mauritania offshore blocks

02/04/2015 Chevron Mauritania Exploration Ltd., a wholly owned subsidiary of Chevron Corp., has agreed to acquire 30% nonoperated working interest in Blocks C...

The ANWR blitz

02/02/2015 Deception begins with a 58-sec video on the White House web site in which President Barack Obama says he'll ask Congress to make the whole Arctic N...

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

Chevron, BP, ConocoPhillips join to explore, appraise Gulf of Mexico leases

01/28/2015 Chevron Corp. subsidiary Chevron USA Inc., BP PLC unit BP Exploration & Production Inc., and ConocoPhillips Co. have pledged to work together t...

Gazprom Neft reviews progress on refinery modernization efforts

01/19/2015 The second phase of JSC Gazprom Neft's program to modernize and upgrade its Russian refineries to improve processing capacities, oil conversion rat...

Chevron makes oil discovery in deepwater gulf Anchor prospect

01/06/2015 Chevron Corp. reported a discovery of oil pay in multiple Lower Tertiary Wilcox sands in its Anchor prospect’s Green Canyon Block 807 Well No. 2, d...

Chevron, ONGC Videsh among firms awarded permits by New Zealand

12/22/2014 New Zealand's government has awarded six onshore permits across the Taranaki, West Coast, and East Coast basins, and nine offshore permits across t...

Canada Briefs

12/12/2014

Chevron, ONGC among companies awarded 15 exploration permits by New Zealand

12/09/2014 New Zealand’s government has awarded six onshore permits across the Taranaki, West Coast, and East Coast basins, and nine offshore permits across t...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected