Atlas Pipeline Partners to Acquire Remaining 25% Stake in NOARK Pipeline
Atlas Pipeline Partners, L.P. has entered into an agreement to acquire a 25% interest in NOARK Pipeline System Limited Partnership ("NOARK"), previously owned by Southwestern Energy Company, bringing the Partnership's interest in NOARK to 100%. NOARK's assets, which are included within the Partnership's Mid-Continent operations, include a FERC regulated interstate pipeline and an unregulated natural gas gathering system. Total consideration to be paid for the 25% minority stake will be $65.5 million, net of approximately $3.5 million of working capital. Consummation of the acquisition is expected to occur in the next several days. The Partnership expects the acquisition of the remaining 25% NOARK interest to be accretive to distributable cash flow in a range of $0.05 to $0.15 per limited partner unit over the next 12 months.
NOARK, through its 100% ownership of Ozark Gas Transmission, L.L.C. ("OGT"), operates 565 miles of FERC regulated interstate pipeline, extending from eastern Oklahoma through central and northeastern Arkansas and into Missouri. OGT has throughput capacity of approximately 322,000 dth/d. In addition, NOARK, through its 100% ownership of Ozark Gas Gathering, L.L.C. ("OGG"), operates 365 miles of unregulated gathering pipeline in Oklahoma and Arkansas. OGG provides access to natural gas basins through approximately 400 receipt points that are then transported through OGT.
Edward E. Cohen, Chairman and CEO of the general partner of the Partnership, stated "Our purchase of the remaining interest in NOARK provides us with additional benefit of operations that are core to our business. This transaction clearly demonstrates the commitment to our strategy to grow our business through a well-positioned and consistent asset base."
Robert R. Firth, President of Atlas Pipeline Mid-Continent LLC, the subsidiary of the Partnership which operates NOARK, stated "We are encouraged that this acquisition provides additional fixed-fee revenues to the Partnership and increases the Partnership's proportion of assets yielding steady, FERC-regulated cash flows. The completion of this acquisition also allows us to more efficiently operate the NOARK system and concentrate on future potential expansion opportunities in the region. We believe that the NOARK system should continue to be a primary option for natural gas transmission from the Fayetteville Shale."
Atlas Pipeline Partners, L.P. is active in the transmission,
gathering and processing segments of the midstream natural gas
industry. In the Mid-Continent region of Oklahoma, Arkansas, northern
Texas and the Texas panhandle, the Partnership owns and operates
approximately 2,565 miles of intrastate gas gathering pipeline and a
565-mile interstate natural gas pipeline. The Partnership also
operates two gas processing plants and a treating facility in Velma,
Elk City and Prentiss, Oklahoma where natural gas liquids and
impurities are removed. In Appalachia, it owns and operates
approximately 1,500 miles of natural gas gathering pipelines in
western Pennsylvania, western New York and eastern Ohio.
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- Atlas Pipeline Partners to Acquire Remaining 25% Stake in NOARK Pipeline (May 02)