Chevron Corp. agreed to buy Atlas Energy for $4.3 billion giving it access to the Marcellus Shale formation. Including assumed debt, the deal is worth approximately $0.47/mcf as Chevron estimated that Atlas has 9 tcf of net natural gas resource.
This deal demonstrates the positive long term view of natural gas that the large oil companies have. Together with firming natural gas prices, we see believe there is long term potential in natural gas companies.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment