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Chevron eyes Atlas deal
By Matt Daily |
November 11, 2010, Thursday
|
Print Edition
Print Edition
CHEVRON Corp plans to buy United States natural gas producer Atlas Energy for US$3.2 billion, becoming one of the last big oil companies to jump into the Marcellus shale field.
The field in western Pennsylvania and neighboring states, one of the largest US natural gas finds in decades, has attracted a crush of industry heavyweights betting that the fuel will become a key global energy source in the coming decades.
Chevron's move into the Marcellus follows acquisitions by Exxon Mobil and Royal Dutch Shell earlier this year, and joint venture deals there by Total, BP Plc and Statoil.
"(Chevron) doesn't have much of a US presence in shale, and I think it's an important place to be," said Argus Research analyst Phil Weiss. "The price looks reasonable."
Analysts estimated the deal valued the Marcellus acreage at about US$9,000 an acre, below the peak that some of the best properties fetched earlier this year above US$14,000.
A steep fall recently in natural gas prices, largely due to rising output from Marcellus and other shale fields, has caused energy firms to slow their natural gas drilling programs and focus on oil and other liquids output.
The field in western Pennsylvania and neighboring states, one of the largest US natural gas finds in decades, has attracted a crush of industry heavyweights betting that the fuel will become a key global energy source in the coming decades.
Chevron's move into the Marcellus follows acquisitions by Exxon Mobil and Royal Dutch Shell earlier this year, and joint venture deals there by Total, BP Plc and Statoil.
"(Chevron) doesn't have much of a US presence in shale, and I think it's an important place to be," said Argus Research analyst Phil Weiss. "The price looks reasonable."
Analysts estimated the deal valued the Marcellus acreage at about US$9,000 an acre, below the peak that some of the best properties fetched earlier this year above US$14,000.
A steep fall recently in natural gas prices, largely due to rising output from Marcellus and other shale fields, has caused energy firms to slow their natural gas drilling programs and focus on oil and other liquids output.
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