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
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