April 16 Atlas Pipeline Partners LP said
it would buy privately owned natural gas gathering and
processing company TEAK Midstream LLC for $1 billion in cash to
expand into the Eagle Ford shale field in South Texas.
Pipeline operators have been expanding presence in Bakken in
North Dakota and Eagle Ford shale fields as production from
these regions has increased substantially in the past few years.
Atlas Pipeline said in December it would buy Cardinal
Midstream LLC, a privately held natural gas gathering and
processing company present in Woodford shale field in Oklahoma.
The assets acquired by Atlas in Eagle Ford include a 200
million cubic feet per day (mmcfd) cryogenic processing plant
and a gas header pipeline with 750 mmcfd of throughput capacity,
Atlas Pipeline said on Tuesday.
The company said it would also acquire a 50 percent to 75
percent stake in joint venture agreements between TEAK and
TexStar Midstream Services LP.
Atlas said it would finance the deal through a $400 million
issuance of its preferred units and committed bank financing
from Citigroup and Wells Fargo.
Atlas Energy, a master limited partnership and the parent of
Atlas Pipeline, will invest $20 million in newly issued Atlas
Pipeline's preferred units as part of the financing.