MERGER: Atlas Energy and Chevron

 Issue: How do I enter the transactions related to the merger of Atlas Energy with Chevron?

Cause: Chevron acquired Atlas Energy. As part of the merger agreement Atlas Energy spun off its holdings of Atlas Pipeline to its shareholders. Atlas Pipeline then changed its name to Atlas Energy, L.P. after the completion of the merger. Information about this transaction can be found through the new Atlas Energy web site at the following address:

http://phx.corporate-ir.net/phoenix.zhtml?c=197317&p=irol-sec&secCat01.1_rs=41&secCat01.1_rc=10

Choose the PRE14C form dated 12/17/2010

Resolution:

This action will need three entries in the accounting software.  The information below is based on the information available from the form PRE14C referenced above. .

The Spinoff Entry

Enter this transaction first.

Go to Transactions > Spinoff  or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this URL: http://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here is the information you need to complete the spinoff.

Date: 2/17/2011

Select Parent Security (or Parent Company) : Atlas Energy (ATLS)

Remaining Basis Percentage: 82.

Cash received:  See your broker statement for cash-in-lieu received

Spinoff  Security (or Symbol of New Company) : Atlas Pipeline (AHD)

Shares received : .525 x (#of ATLS shares owned)   (Remember to include fractional shares.)

For example, if you owned 100 ATLS shares, you should receive .525 x 100 = 52.5 AHD shares.

Price Per Share : 16.10 (opening price on 2/17/2011)

Save the transaction and the spinoff has been entered.

The Merger Entry

This merger is an acquisition and is treated as a sell transaction for Atlas Energy shareholders.

Go to Transactions > Sell  or Accounting > Securities > Sell depending on the version of the software being used.

Here is the information you need to complete the sale.

Date: 2/18/2011

Total Proceeds from sale: [38.25 x (ATLS shares owned)] – (fees charged).

Check your broker statement in case the details changed from the original prospectus.

Commissions are generally not charged on these transactions. Some brokers may charge a “reorganization fee”.

The Name Change

For Club Accounting 3 do the following:

Click Securities.  Double click on Atlas Pipeline.

Change Security Name to Atlas Energy L.P.

Ticker Symbol stayed the same as AHD.

Click OK button.

For Online Club Accounting do the following:

Click Securities.  Click the Update Security settings link.

Click Edit next to Atlas Pipeline.

Change Company Name to Atlas Energy L.P

 Symbol stayed the same at AHD

Click Submit button.