MOON TOWNSHIP, Pa. - Atlas Energy, Inc. (AHD) announced on Nov. 9 that it has entered into a definitive agreement to be acquired by Chevron Corp. in a transaction valuing Atlas Energy at $4.3 billion, including Atlas Energy's currently outstanding debt.
In the transaction, Atlas Energy shareholders will receive consideration valued at $43.34 per share in total, a 37 percent premium to Atlas Energy's closing share price on Nov. 8.
Atlas Energy shareholders will receive $38.25 in cash for each outstanding share, and will also receive a pro-rata share of a distribution of over 41 million units of Atlas Pipeline Holdings, L.P.
Based on AHD's most recent closing price on Nov. 8, these units have a value of $5.09 per Atlas Energy share.
Closing of the transaction is subject to approval by Atlas Energy's shareholders, other customary closing conditions and the completion of the following transactions:
Atlas Energy and AHD have agreed that, prior to the Chevron - Atlas Energy merger and the distribution of AHD units to the Atlas Energy stockholders, AHD will acquire from Atlas Energy approximately 175 Bcfe of natural gas reserves, certain other energy assets and fee revenues from the investment management business owned by Atlas Energy, for consideration payable to Atlas Energy of $250 million, comprised of $220 million in newly issued AHD units and $30 million in cash.