Under the agreement, Atlas will buy all the owned and/or operated assets from US-based Cardinal Midstream, including three cryogenic processing facilities with a total processing capacity of 220 million cubic feet per day (MMcfd), pipelines, and a gas treating business with 17 treating plants situated in many hydrocarbon basins.
Atlas Pipeline Partners chief executive officer Eugene Dubay said the assets to be acquired from Cardinal Midstream complement the company’s interest to gather and process in the liquids-rich basins.
"The Cardinal assets are close to our assets in the Woodford shale, about 50 miles from our Velma area of operations," Dubay added.
As a part of the acquisition, Atlas will own 100% of a 120 MMcfd cryogenic plant in the Arkoma Woodford basin; 106.2km of gathering pipelines; and a 28,500 horsepower compression capability, including a 42 MMcfd compression facility and a treating facility.
Apart from these assets, Atlas will also secure 60% interest in Centrahoma JV, a joint venture company of Cardinal and MarkWest.
Centrahoma JV owns two cryogenic plants and 24.1km natural gas liquids pipelines.
Subject to customary conditions, regulatory approvals, and purchase price adjustments, the acquisition is expected to be completed by the end of 2012.
Cardinal Midstream is a privately owned natural gas midstream company, whose wholly-owned subsidiary Cardinal Gas Treating owns a diverse fleet of amine treating plants and mechanical refrigeration processing plants.
