Chevron acquiring Atlas Energy for $4.3 Billion

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.

Korean Fund, KKR complete buy of Chevron stake in Colonial

ALPHARETTA, Ga. - National Pension Service, South Korea's biggest state fund, has bought Chevron Corp.’s stake in Colonial Pipeline Co. in partnership with Kohlberg Kravis Roberts & Co. (KKR & Co. LP) to diversify its investment portfolio.

The South Korean fund has purchased a 23.44 percent stake in the operator of the largest refined petroleum products pipeline linking U.S. Gulf Coast refiners and East Coast markets, National Pension said in an e- mailed statement on Oct. 12, without disclosing the transaction value.

The purchase makes the consortium the second biggest shareholder in Colonial only after U.S.-based Koch Industries Inc.

"The investment is part of our efforts to diversify globally to ensure stable long-term returns, and it would be an important opportunity to expand investments in energy-related assets," according to the statement.

National Pension was picked as a preferred bidder to acquire the stake for about $890 million, the Korea Economic Daily said on Aug. 23, citing an unidentified official at the fund.

The fund supplied most of the capital for the purchase, said two people familiar with the deal.

KKR will manage the asset on behalf of the South Korean fund, the people said.

Chevron settles Texas pipeline lawsuit filed in 2002

LUFKIN, Texas - Nearly 200 Angelina County property owners and a major oil company have reached a settlement in a property damage and wrongful death lawsuit filed six years ago over alleged complications caused by a 70-year-old
leaky pipeline running through Lufkin.
"We've settled the case," said Kirk Mathis, an attorney for Chandler Law
Offices, which filed the suit.
Property owners alleged in 2002 that Chevron Pipeline Company failed to fix a crude oil pipeline that allegedly leaked for years, causing property damage and in some cases severe health complications for residents, including a rare form of leukemia. Mathis said a large majority of the owners who filed suit had alleged property damages. Only a few had made allegations of health complications or even death as a result of the pipeline, he said.
The amount Chevron paid out to each owner is not being publicly disclosed, nor are any details about the suit, which are part of a confidentiality agreement signed by all parties involved in the settlement.
While the agreement with Chevron was reached at the end of last year, Mathis said he is in the process of drafting up a court motion to have the case formally dismissed.
Chevron Pipeline Company spokesman Mickey Driver said he could not comment on the settlement agreement. Chevron Pipeline, a wholly owned subsidiary of Chevron Corp., is headquartered in Houston.