Chevron Acquires Atlas Energy for $4.3 Billion (CVX)


Shutterstock photo

Integrated oil giant Chevron Corporation ( CVX ) on Tuesday announced it has acquired natural gas and oil producer Atlas Energy ( ATLS ) for around $4.3 billion.

In pursuant to the agreement, current Atlas shareholders will receive total compensation of $43.34 per share, which represents a 37% premium to the stock's Monday closing price of $31.72. Each shareholder will receive $38.25 in cash plus a pro-rata share of a distribution of over 41 million units of Atlas Pipeline Holdings, L.P. ( AHD ).

Atlas CEO Edward E. Cohen commented, "All of our shareholders should benefit from this sale and upon its completion, Atlas will have achieved a return of well over 800% since its initial public offering less than 6 1/2 years ago. All of our employees and shareholders should know that, through Chevron's acquisition of Atlas Energy, we will be bringing into the Marcellus Shale one of the world's largest corporations, an energy company second to none in its skills and dedication to excellence. This augurs well for customers and suppliers, our joint venture partners, those of our employees who will be continuing with Chevron, the local communities in which we have been active - and our nation, for all of whom Chevron's involvement in development of this resource will be of enormous benefit."

Chevron shares fell 60 cents, or -0.7%, in premarket trading Tuesday.

The Bottom Line
We have been recommending shares of Chevron ( CVX ) since Oct.8, 2009, when the stock was trading at $70.51. The company has a 3.40% dividend yield, based on last night's closing stock price of $84.80.

Chevron Corporation ( CVX ) is a "Recommended" dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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

Created by

This article appears in: Investing , Stocks
More Headlines for: ATLS , CVX

More from

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by