Reliance to pay US$1.7 billion for a stake in Atlas Energy's Marcellus acreage
Continuing the trend of international companies buying into US shale gas assets, India-based Reliance has announced the acquisition of a 40% stake in Atlas' Marcellus acreage. The consideration is US$1.7 billion, US$340 million to be paid as cash at closing and the balance as a carry of Atlas' drilling costs over the next five to seven years. Our base case valuation of the acquired interests (excluding the cost carry) is US$1.45 billion. This equates to an Implied Long-term Oil ...