By DEBBIE CAI
Atlas Pipeline Partners has agreed to acquire Teak Midstream for $1 billion in cash, giving the company an entry point into the liquids-rich Eagle Ford Shale in south Texas.
NGP Energy Capital Management put Teak up for sale in March. Teak has a long-term gathering-and-processing agreement with Comstock Resources and another undisclosed producer.
Atlas Pipeline CEO Eugene Dubay said Teak's assets are new, highly efficient and are located in the heart of one of the most prolific plays in North America. The assets being acquired include two cryogenic processing plants and 265 miles of high-pressure, rich gas-gathering lines.
The deal is expected to close in the second quarter.
Atlas Pipeline, which is the midstream subsidiary of Atlas Energy, expects to further expand the acquired Eagle Ford assets beyond 2014, including the potential to add a third processing facility and additional gathering pipelines, among other projects.
Atlas Pipeline owns and operates intrastate gas-gathering pipelines in Oklahoma, Arkansas and Texas as well as a 565-mile interstate gas pipeline.
Dow Jones Newswires