May 7, 2013
Atlas Pipeline Partners, L.P.
("APL", "Atlas Pipeline", or the "Partnership")
announced today that the Partnership has closed on its previously announced purchase of TEAK Midstream, L.L.C. ("TEAK Midstream" or "TEAK"), a private midstream company. The effective date of the acquisition was
, 2013. Final cash consideration for TEAK totaled
, subject to working capital and other adjustments contemplated by the Purchase and Sale Agreement.
, Chief Executive Officer of the Partnership, commented, "As I mentioned in the initial announcement, we are very excited about this acquisition of TEAK Midstream. This is the right entry point into the Eagle Ford with the right infrastructure and with tremendous future growth potential. After successfully executing organic growth across all of our legacy systems, we look forward to doing the same with our new Eagle Ford assets."
Upon the closing of this transaction, the Partnership will own 100% of the following TEAK assets:
- 200 MMcfd of cryogenic processing capacity ("Silver Oak I");
- A second 200 MMcfd cryogenic processing facility to be in service in the first quarter of 2014 ("Silver Oak II");
- 265 miles of primarily 20" to 24" gathering and residue lines with 750 MMcfd of throughput capacity; and
- 275 miles of low pressure gathering lines
Additionally, the Partnership has acquired a 50%-75% interest in various joint venture agreements that currently exist between TEAK and TexStar Midstream Services, L.P. The Partnership will be the operator of the joint venture assets following the transaction, which include:
- 235 miles of pipeline, including rich gas gathering, header, and residue pipelines;
- 3 miles of NGL pipeline; and
- A Co-Gen facility, which will produce power for the Silver Oak complex as well as the ability to sell power to third-parties and back to the grid during peak season
The Silver Oak processing complex is expected to expand in early 2014 by installing a new 200 MMcfd facility, the Silver Oak II plant, and potentially expand further thereafter by adding an additional 200 MMcfd facility. Any expansions will be 100% owned and operated by Atlas Pipeline.