US-based Atlas Energy said that its E&P subsidiary Atlas Resource Partners (ARP) has signed an acquisition agreement worth about $733m, with EP Energy E&P Company, a wholly-owned subsidiary of EP Energy.

As part of the deal, Atlas Energy will acquire about 466 Bcf of natural gas proved reserves in the Raton basin in New Mexico and Black Warrior basin in Alabama.

The assets are currently flowing about 119 MMcfd of natural gas.

In addition, the company will acquire natural gas proved reserves in the Arkoma Basin from EP Energy for $67m.

The Arkoma assets includes 45 Bcf of natural gas reserves, which are generating about 13 MMcf/d of net production from about 550 wells.

The transaction will allow Atlas to provide distribution guidance of $2.50 to $2.80 per unit for full year 2014, compared to the annualised distribution of $1.24 or $0.31 per unit paid for first quarter 2013.