Atlas Pipeline Partners LP has announcedit would be buying privately owned natural gas processor TEAK Midstream LLC for the price of US$1 billion in cash. The moves is designed to expand the participation and interests of Atlas in the booming Eagle Ford shale oil field located in South Texas.
The pipeline operators have also expanded its interests in Bakken in North Dakota and Eagle Ford shale fields as the production from these areas have increased significantly in the last few years.
Another expansion move is the purchase of Cardinal Midstream LLC, a privately held natural gas processing company that has a presence in the Woodford shale field in Oklahoma.
According to Atlas Pipeline, amongst the assets acquired in Eagle Ford is a 200 million cubic feet per day cryogenics processing facility and gas header pipeline with a 750 million cubic feet per day capacity.
The deal would be financed through a US$400 million preferred share issuances as well as bank financing coming from Wells Fargo and Citigroup.
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