Atlas Energy Acquires Natural Gas Production for $733 Million; Commences Offering; Shares Jump 7%

By Staff,

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Atlas Energy ( ATLS ) said Monday that it will acquire 466 Bcf of natural gas proved reserves in the Raton Basin in New Mexico and Black Warrior in Alabama Basin from EP Energy E&P Company, L.P., a wholly owned subsidiary of EP Energy LLC, for $733 million.

The transaction will have an effective date of May 1, 2013, and is expected to be immediately accretive to distributable cash flow.

Following the acquisition, ATLS issued full-year 2014 distribution guidance of at least $2.60 per unit. This represents approximately a 27% increase compared to the current annualized distribution of $2.04 or $0.51 per unit paid for first quarter 2013.

Separately, the company commenced an underwritten public offering of 12.25 million common units representing limited partner interests. The underwriters have been granted a 30-day option to purchase up to an additional 1.84 million common units.

ATLS shares are up 6.92% to $51.32, within a 52-week range of $27.83 - $53.60.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: ATLS

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