Atlas Energy Resources, LLC announced today that it has completed its acquisition of DTE Gas & Oil Company ("DGO"), formerly a wholly owned subsidiary of DTE Energy Company (NYSE:DTE - News). The total consideration paid by Atlas Energy, including initial adjustments for capital expenditures and working capital, was approximately $1.258 billion, subject to final post-closing adjustments.
DGO owns interests in approximately 2,150 natural gas wells producing from the Antrim Shale, located in Michigan's northern lower peninsula. The Antrim Shale is a mature play characterized by long-lived reserves and predictable production rates. Schlumberger Data Consulting has engineered 613 Bcfe (billion cubic feet of natural gas equivalents) of proved reserves on DGO's approximately 228,000 net developed acres and 66,000 net undeveloped acres. Dick Redmond, Jr., President of DGO, has joined Atlas Energy as President of the Company's new Michigan business unit.
Funds for the DGO acquisition came from: 1) a private placement to institutional investors in the amount of $600 million, representing 24 million common and Class D units having a weighted average price of $25.00 per unit; and 2) a new $850 million senior secured revolving credit facility with an initial borrowing base of $850 million, most of which will fund the remaining balance of the purchase price.
UBS Investment Bank acted as financial advisor and private placement agent to Atlas Energy. JPMorgan Chase Bank, N.A. acted as lead arranger and book runner for the Company's new revolving credit facility.
Atlas Energy Resources, LLC is an energy company focused on the development and production of natural gas and, to a lesser extent, oil principally in the Appalachian Basin. Atlas Energy sponsors and manages tax advantaged investment partnerships, in which it co-invests, to finance the exploitation and development of its acreage. For more information, please visit our website at www.atlasenergyresources.com, or contact Investor Relations at bbegley@atlasamerica.com.
Atlas America, Inc. (NasdaqGS:ATLS - News) after this transaction owns a 47.4% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC (NYSE:ATN - News), and an 83% limited partner interest in Atlas Pipeline Holdings, L.P. (NYSE:AHD - News), a limited partnership which owns the general partner interest in Atlas Pipeline Partners, L.P. (NYSE:APL - News), all the incentive distribution rights and 1.6 million common units of APL. For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at bbegley@atlasamerica.com.
Certain matters discussed within this press release are forward-looking statements. Although Atlas Energy Resources, LLC believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, inability of the Company to successfully integrate DGO's operations, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in Atlas Energy's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.
Contact:
Contact:
Brian Begley
Investor Relations
1845 Walnut Street
Philadelphia, PA 19103
(215) 832-4123
(215) 561-5692 (facsimile)
Source: Atlas Energy Resources, LLC
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