Atlas Energy is an gas exploration and production company formed in a 2009 merger between Atlas America and Atlas Energy Resources. Atlas Energy is based onshore and extracts natural gas from its two main fields in Appalachia and in Michigan, with 1,008.745 billion CFE (Billion cubic feet equivalent) of natural gas in proved reserves. The Appalachia region consists of reserves in New York, Pennsylvania, West Virginia, Tennessee, and Kentucky. The company is mostly exposed to natural gas, 99% of its proved reserves, and has little oil reserves, 1% of its reserves. Atlas Energy primarily sells its natural gas to energy wholesalers such as Hess and DTE Energy Company, and the rest to local distributors, gas marketers, and other large energy users. Rising gas and oil prices have increased the profit margins and the value of the territories Atlas Energy owns. The growing demand for energy from China, India, and other emerging markets have further elevated the price.
Natural gas is often viewed as cleaner and more environmentally friendly then coal, and 3 large investment banks have announced that they will be unlikely to finance a coal powered electricity plant. Atlas encounters almost uniquely natural gas, and this switch in dependence will likely lead to future increases in the value of the hydrocarbon.
On November 9, 2010 Chevron openly discussed its offer to acquire Atlas Energy for $3.2 billion in cash while also taking on $1.1 billion in debt (the total price was 37% more than the company's market value).
Atlas Energy emerged from the merger between Atlas America and it former subsidiary Atlas Energy Resources, which the company now wholly owns The company owns two main sites: