Atlas Pipeline Partners (NYSE: APL) 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."