Chevron Buys US Shale Assets, Will Leverage for Europe

Chevron, the second-largest US oil group by revenue, will acquire Atlas Energy in a $4.3bn deal that will give it a foothold in Pennsylvania’s Marcellus shale gas formation and help it compete with rival Exxon.

“We are acquiring a company that has one of the premier acreage positions in the prolific Marcellus,” said George Kirkland, Chevron’s vice-chairman.

“The high-quality resource, competitive cost structure in the Marcellus, strong growth potential of the asset base and its proximity to premier natural gas markets make this targeted acquisition a compelling investment for Chevron.”

“The Atlas Energy assets further advance Chevron’s global shale gas position, complementing the company’s recent entrance into shale gas opportunities in Poland, Romania and Canada,” said Kirkland.

Chevron has also expressed an interest in exploring for shale gas in Bulgaria.

Source: Natural Gas for America