Atlas Pipeline Partners LP to Buy TEAK Midstream for $1B

TEAK Midstream, L.L.C., a Natural Gas Partners-sponsored company, announced the company has signed a definitive agreement with a wholly owned subsidiary of Atlas Pipeline Partners, L.P.

whereby Atlas will acquire 100 percent of TEAK's equity interests for $1 billion in cash. The transaction is expected to close in May 2013 subject to certain regulatory approvals and customary closing conditions. TEAK's assets include an interest in 265 miles of primarily 20-to-24-inch diameter natural gas gathering and residue delivery pipelines and all of the adjoining Silver Oak 200 million cubic feet per day (MMcf/d) cryogenic gas processing plant in the heart of the liquids-rich Eagle Ford Shale oil and gas play in South Texas. In addition, Silver Oak II, a second 200 MMcf/d cryogenic gas processing plant, is expected to be delivered for installation in May 2013 and operational during the first quarter of 2014. TEAK's assets also include the 275-mile low-pressure Texana gathering system in South and East Texas, which the company acquired in July 2010. Evercore Partners acted as TEAK's financial adviser and Thompson & Knight LLP acted as TEAK's legal adviser for the transaction.