Atlas Closes On Purchase Of TEAK Midstream

Closed on the purchase of the private midstream company.

Atlas Pipeline Partners LP (NYSE: APL), the midstream subsidiary of Atlas Energy LP (NYSE: ATLS), has closed on its previously announced purchase of TEAK Midstream LLC, a private midstream company for $1 billion.

Based on the forecasted earnings and cash flow from the TEAK assets, Atlas Energy expects to receive an additional $25 million to $40 million of annual distributable cash flow as the acquired assets grow and mature in the future. This represents $0.45 to $0.75 per Atlas Energy common unit of additional distributable cash flow on an annualized basis.

The TEAK assets in the Eagle Ford shale include:

• 200 million cubic feet per day of cryogenic processing capacity (Silver Oak I);

• A second 200 million cubic feet per day cryogenic processing facility to be in service in 1Q 2014 (Silver Oak II);

• 265 miles of primarily 20 inch to 24 inch gathering and residue lines with 750 million cubic feet per day of throughput capacity; and

• 275 miles of low pressure gathering lines.

Atlas Pipeline Partners LP operates in the gathering and processing segments of the midstream natural gas industry. The company is headquartered in Pittsburgh.

Atlas Energy LP is an independent oil and gas company based in Pittsburgh. The effective date of the acquisition was April 1.