US Targa to acquire Atlas Pipeline, midstream assets for $7.7bn
Jessie Waldheim
13-Oct-2014
HOUSTON (ICIS)–Targa Resources has agreed to acquire Atlas Pipeline and Atlas Energy after the energy company spins off its non-midstream assets in a transaction expected to total $7.7bn, the companies announced on Monday.
Atlas Pipeline includes 17 natural gas processing facilities and about 11,200 miles (18,000 km) of gathering systems in Texas, Oklahoma and Kansas. Targa Resources will acquire the pipeline company for $5.8bn.
Atlas Energy will spin off its non-midstream assets, which includes about 11.5 million cubic feet (11.5 mcf)/day production of natural gas in the Arkoma basin in Oklahoma and Arkansas. Targa Resources will acquire the mid-stream assets for $1.9bn.
“The acquisitions will significantly and immediately increase our scale and geographic diversity, accelerating the growth of our premier North American midstream platform,” Targa Resources CEO Joe Bob Perkins said.
The acquisitions are dependent upon the spin-off of Atlas
Energy’s non mid-stream assets, on approval of shareholders
and other conditions. The transactions are expected to close
in the first quarter of 2015.
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