PHILADELPHIA, May 7, 2013 /PRNewswire/ -- Atlas Pipeline Partners, L.P. (NYSE: APL) ("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 April 1, 2013. Final cash consideration for TEAK totaled $1.0 billion, subject to working capital and other adjustments contemplated by the Purchase and Sale Agreement.
Eugene Dubay, 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
- 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