Atlas Pipeline Partners to buy Cardinal Midstream for $600 million
BY ROD WALTON World Staff Writer
Tuesday, December 04, 2012
12/04/12 at 4:09 AM
Atlas Pipeline Partners LP announced Monday it will buy Dallas-based Cardinal Midstream LLC, which includes several Oklahoma gas processing and transportation assets, for $600 million in cash.
Privately owned Cardinal Midstream has a 120 million cubic feet per day processing plant in the Arkoma Woodford Basin and 60 miles in gas gathering pipelines. The deal also includes cryogenic processing facilities in Atoka and Coalgate, and a 60 percent stake in the Centrahoma Processing LLC joint venture with MarkWest Energy Partners LP.
Atlas Pipeline Partners employs about 90 people in Tulsa and 250 throughout Oklahoma.
The acquisition is expected to close by the end of the month, said Atlas Pipeline Partners, which is controlled by Philadelphia-based Atlas Energy LP.
"We are very excited about the acquisition of Cardinal Midstream," Atlas Pipeline Partners CEO Eugene Dubay said in a statement. "The profile of assets fits very well with our core focus, which is gathering and processing in liquids-rich basins with increasing producer activity."
The Cardinal assets are close to Atlas' facilities in the Woodford Shale. The Arkoma portion of that shale formation, which is a new area for Altas, is rich in natural gas liquids.
All told, Atlas will increase its processing capacity in the region by 220 million cubic feet per day. The Centrahoma joint venture also will expand late next year with a new plant having a capacity of 120 million cubic feet per day.
The company also owns and operates nine gas processing plants and 9,700 miles of gathering pipeline in Oklahoma, Kansas, Texas and Tennessee.
Original Print Headline: $600M purchase to expand Atlas role
Rod Walton 918-581-8457