Atlas Energy to Acquire DTE's Antrim Shale Gas E&P Properties

Atlas Energy Resources, a limited liability company that produces natural gas primarily in the Appalachian Basin, will purchase DTE Energy's Antrim Shale gas exploration and production properties for $1.23 billion in cash. The properties are in the northern part of Michigan's lower peninsula. Atlas forecasts that it will distribute $2.20-2.40 per common unit in 2008 and plans to increase its distribution coverage ratio from 1.1x to 1.2x. At $2.30, this would amount to a 34% premium over Atlas's current distribution rate of $0.43 per quarter, or $1.72 annualized. Atlas will finance the transaction by selling $600 million in shares in a private placement. DTE's board has authorized up to a $1.55 billion common share buyback, up from $700 million. DTE is expecting after-tax proceeds of $1.25-1.55 billion by the end of the year. The deal is expected to close at the end of June. DTE will hold a conference call to discuss the asset sale at 8:30 Monday morning.

Sources: Press release, EarthTimes.org, MarketWatch, MSNmoney
Commentary: The Top Dividend Paying ETFs and Stocks • Ten Highest Yielding Electric Utility Stocks • Atlas America and Other Long Picks in the Oil & Gas Sector
Stocks/ETFs to watch: Atlas Energy Resources, LLC (ATN), DTE Energy Co. (DTE). Competitors: CMS Energy Corp. (CMS), Integrys Energy Group, Inc. (TEG), Wisconsin Energy Corp. (WEC), EOG Resources, Inc. (EOG), Equitable Resources Inc. (EQT), Penn Virginia Corp. (PVA). ETFs: WisdomTree Dividend Top 100 (DTN), Rydex S&P 500 Pure Value (RPV), iShares Dow Jones Select Dividend Index (DVY)
Related: Atlas Energy Resources: IPAA Oil & Gas Investment Symposium Presentation Transcript

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