Atlas Pipeline Partners has completed an agreement to acquire TEAK Midstream, a privately owned company active in the massive Eagle Ford Shale oil and gas play in Texas. The price is $1 billion in cash.
Atlas will now own a company with a set of Eagle Ford midstream assets that includes a cryogenic processing plant, 265 miles of high-pressure rich gas gathering lines, and 275 miles of low-pressure lines. Atlas said in the press release announcing the acquisition that it will expand that asset base over the next few years. A second cryogenic processing plant is currently slated for delivery next month and should come onstream in early 2014.
Gaining control of TEAK Midstream will, by extension, also give Atlas a 50%-75% interest in a set of joint-venture agreements between its new unit and TexStar Midstream Services.
Atlas expects the deal to close during this quarter, pending approval from the relevant authorities and "customary closing conditions."
The article Atlas Pipeline Partners Nabs Eagle Ford Midstream Operator originally appeared on Fool.com.
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