dfan14a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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Preliminary Proxy Statement |
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
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Definitive Proxy Statement |
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Soliciting Material Pursuant to §240.14a-12 |
Atlas Energy, Inc.
(Name of Registrant as Specified In Its Charter)
Chevron Corporation
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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NEWS RELEASE
FOR IMMEDIATE RELEASE
Chevron Announces Agreement to Acquire Atlas Energy
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Acquisition gives Chevron high quality natural gas position in the Marcellus Shale |
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Chevron becomes 60 percent operator of a joint venture with Reliance Industries |
SAN RAMON, Calif., November 9, 2010 Chevron Corporation (NYSE: CVX) and Atlas Energy, Inc.
(NASDAQ: ATLS) announced today that Chevron would acquire Atlas Energy for cash of $3.2 billion and
assumed pro forma net debt of approximately $1.1 billion. The acquisition will provide Chevron with an
attractive natural gas resource position primarily located in southwestern Pennsylvanias Marcellus
Shale. The acquisition is subject to certain Atlas Energy restructuring transactions, approval by
Atlas Energy shareholders and regulatory clearance.
This
acquisition is the right opportunity for Chevron, said George L. Kirkland, Chevron Vice
Chairman. We are acquiring a company that has one of the premier acreage positions in the
prolific Marcellus. 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.
Kirkland also commented: The Atlas Energy assets further advance Chevrons global shale gas
position, complementing the companys recent entrance into shale gas opportunities in Poland,
Romania and Canada.
Gary Luquette, Chevron North America Exploration and Production President said, Atlas Energy
brings to us a highly skilled team with strong operating experience and established land management
capabilities. This knowledge, together with Chevrons technical expertise and global experience
with large scale project developments, will create strong organizational synergies.
Atlas Energy Assets
When
the transaction closes, Chevron will gain Atlas Energys
estimated nine trillion cubic feet
of natural gas resource, which includes approximately 850 billion cubic feet of proved natural gas
reserves with approximately 80 million cubic feet of daily natural gas production. The assets in
the Appalachian basin consist of 486,000 net acres of Marcellus Shale; 623,000 net acres of Utica
Shale; and a 49 percent interest in Laurel Mountain Midstream, LLC, a joint venture which owns over
1,000 miles of intrastate and natural gas gathering lines servicing the Marcellus. Assets in
Michigan include Antrim producing assets and 100,000 net acres of Collingwood/Utica Shale.
Marcellus Joint Venture
In April 2010, Atlas Energy entered a joint venture to develop its Marcellus assets with
a wholly owned affiliate of Reliance Industries Limited. Under the agreement, Chevron will assume Atlas Energys role
as operator with 60 percent participation in the Marcellus joint venture, under the original
agreement terms between Atlas Energy and Reliance. Reliance will continue to fund 75 percent of
the operators drilling costs, up to $1.4 billion.
Terms of Acquisition
Under the terms of the agreement, Atlas Energy shareholders will receive $38.25 in cash for
each share of Atlas Energy stock and a pro-rata distribution of over 41 million units of Atlas
Pipeline Holdings, L.P. (NYSE: AHD) following certain restructuring transactions to be completed
immediately prior to the merger closing. Based on AHDs most recent closing price on November 8,
these units will have a value of $5.09 per Atlas Energy share. In the restructuring transactions,
Atlas Energy will:
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Acquire a 49 percent interest in Laurel Mountain Midstream, LLC from Atlas Pipeline Partners, L.P. (NYSE:
APL) for a cash consideration of $403 million; |
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Sell all interests in existing investment partnerships, 175 billion cubic feet of proved
natural gas reserves, and certain other energy assets to AHD for a consideration of $250
million, comprised of $30 million in cash and $220 million in newly issued AHD units. |
Goldman,
Sachs & Co. is acting as financial advisor to Chevron. Skadden Arps Slate Meagher
Flom LLP is acting as legal advisor to Chevron. Jefferies & Co. Inc. and Deutsche Bank Securities
Inc. are acting as financial advisor to Atlas Energy. Wachtell Lipton Rosen Katz is acting as
legal advisor to Atlas Energy.
Chevron will briefly address the acquisition at the upcoming Bank of America / Merrill Lynch
2010 Global Energy Conference on November 11th. The event will be webcast.
About Chevron
Chevron is one of the worlds leading integrated energy companies, with subsidiaries that
conduct business worldwide. The companys success is driven by the ingenuity and commitment of its
employees and their application of the most innovative technologies in the world. Chevron is
involved in virtually every facet of the energy industry. The company explores for, produces and
transports crude oil and natural gas; refines, markets and distributes transportation fuels and
other energy products; manufactures and sells petrochemical products; generates power and produces
geothermal energy; provides energy efficiency solutions; and develops the energy resources of the
future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is
available at http://www.chevron.com.
About Atlas Energy
Atlas Energy, Inc. is one of the largest independent natural gas producers in the Appalachia
and Michigan Basins and a leading developer in the Marcellus Shale in Pennsylvania.
# # #
Contact:
Lloyd Avram +1 925-842-3422 avrl@chevron.com
Additional Information about the Acquisition
This communication may be deemed to be a solicitation of proxies in respect of the proposed
acquisition of Atlas Energy by Chevron. In connection with the proposed acquisition, Atlas Energy
will file a proxy statement with the SEC and intends to file other relevant materials with the SEC
as well. Investors and security holders of Atlas Energy are urged to read the proxy statement and
other relevant materials filed with the SEC when they become available because they will contain
important information about the proposed acquisition and related matters. The final proxy
statement will be mailed to Atlas Energy stockholders. Investors and stockholders may obtain a
free copy of the proxy statement when it becomes available, and other documents filed by Atlas
Energy, at the SECs Web site, www.sec.gov. These documents (when they are available) can also be
obtained by investors and stockholders free of charge from Atlas Energy upon written request to
Atlas Energy, Attention: Investors Relations; Atlas Energy, Inc., 1845 Walnut Street, Suite 1000,
Philadelphia, PA 19103; InvestorRelations@atlasenergy.com, or by calling 1-877-280-2857.
This communication is not a solicitation of a proxy from any security holder of Atlas Energy;
however, Chevron, Atlas Energy and certain of their respective directors and executive officers,
under SEC rules, may be deemed to be participants in the solicitation of proxies from stockholders
of Atlas Energy in connection with the proposed acquisition. Information about Chevrons directors
and executive officers may be found in its 2009 Annual Report on Form 10-K filed with the SEC on
February 25, 2010, and definitive proxy statement relating to its 2010 Annual Meeting of
Stockholders filed with the SEC on April 15, 2010. Information about Atlas Energys directors and
executive officers may be found in its 2009 Annual Report on Form 10-K filed with the SEC on
February 26, 2010, and definitive proxy statement relating to its 2010 Annual Meeting of
Stockholders filed with the SEC on April 13, 2010. Additional information regarding the interests
of such potential participants in the solicitation of proxies in connection with the merger will be
included in the proxy statement and other relevant materials filed with the SEC when they become
available.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995
Except for the historical and factual information contained herein, the matters set forth in this
press release, including statements as to the expected benefits of the acquisition such as
synergies, competitive cost structure, growth potential, market profile and financial strength,
and the competitive capabilities of the combined company, and other statements identified by words
such as estimates, expects, projects, plans, adds, and similar expressions are
forward-looking statements within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially, including required approvals by
Atlas Energy shareholders and regulatory agencies, the possibility that the anticipated benefits
from the acquisition cannot be fully realized, the possibility that costs or difficulties related
to the integration of Atlas Energy operations into Chevron will be greater than expected, the
impact of competition and other risk factors relating to our industry as detailed from time to time
in each of Chevrons and Atlas Energys reports filed with the SEC. You should not place undue
reliance on these forward-looking statements, which speak only as of the date of this press
release. Unless legally required, Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information, future events or otherwise.