Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Atlas Pipeline Partners - APL - To Acquire Cardinal Midstream

Tuesday, December 4, 2012 10:17 AM
Atlas Pipeline Partners, L.P. (NYSE: APL) announced that the Partnership has executed a definitive agreement to acquire all equity interests representing all of the operating assets of Cardinal Midstream, LLC ("Cardinal"), a privately owned midstream operator, for $600 million in cash.  The transaction, which is expected to close by the end of 2012, is subject to certain regulatory approvals, customary closing conditions, and purchase price adjustments. Partnership to acquire all operating assets from Cardinal Midstream, LLC
  • Transaction is expected to be immediately accretive to DCF by 3% to 5% in 2013 and 8% to 10% in 2014
  • Atlas Pipeline increases 2013 EBITDA guidance by over 20% to $310 to $360 million
  • Provides new entry as the largest midstream processer in liquids-rich basin of Arkoma-Woodford
  • Majority of Cardinal Midstream's cash flows derived from fixed fee contracts
  • Acquisition includes 60% operated interest in Centrahoma JV with MarkWest Energy Partners
  • Owned and/or operated assets include 220 MMcfd of processing capacity and associated gathering lines as well as gas treating business
As a result of the transaction, the partnership is increasing EBITDA guidance for 2013 by over 20% from $250-300 million to $310-360 million.  The transaction is expected to be immediately accretive to distributable cash flow per unit by 3-5% in 2013 and 8-10% in 2014.  Expected EBITDA from the Cardinal assets is forecasted to be approximately $60 million in 2013, and approximately $70 million and $80 million in 2014 and 2015, respectively. The owned and/or operated assets will include three cryogenic processing plants totaling 220 MMcfd in processing capacity, 66 miles of associated gathering pipelines, and a gas treating business that includes 17 treating facilities located in numerous hydrocarbon basins.  Over 80% of Cardinal's current gross margin is derived from fixed fee contracts. About Atlas Pipeline Partners, L.P. - APL Atlas Pipeline Partners, L.P. (APL) is active in the gathering and processing segments of the midstream natural gas industry.  In Oklahoma, southern Kansas, northern and western Texas, and Tennessee, APL owns and operates nine active gas processing plants as well as approximately 9,700 miles of active intrastate gas gathering pipeline.  APL also has a 20% interest in West Texas LPG Pipeline Limited Partnership, which is operated by Chevron Corporation. About Atlas Energy, L.P. - ATLS Atlas Energy, L.P. (NYSE: ATLSis a master limited partnership which owns all of the general partner Class A units and incentive distribution rights and an approximate 43% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P. Additionally, Atlas Energy owns and operates the general partner of its midstream oil & gas subsidiary, Atlas Pipeline Partners, L.P., through all of the general partner interest, all the incentive distribution rights and an approximate 11% limited partner interest.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Tesco scraps outlook on larger than expected accounting black holeTesco scraps outlook on larger than expected accounting black hole
LONDON (Reuters) - Britain`s biggest grocer Tesco reported a larger than expected hole in its accounts on Thursday, forcing it to scrap its full-year trading profit outlook. Tesco, which has lost a ...
Nokia beats market expectations in third-quarterNokia beats market expectations in third-quarter
HELSINKI (Reuters) - Finland`s Nokia on Thursday reported stronger-than-expected profitability at its core networks business in the third quarter and raised the unit`s full-year outlook on the back of...
Exclusive: U.S. stock options markets agree to need for trading halts on big movesExclusive: U.S. stock options markets agree to need for trading halts on big moves
NEW YORK (Reuters) - U.S. options market operators have agreed in recent months on the need for new automatic trading halts when stock options prices suddenly surge or plunge, in a bid to reduce exc...
Buffett copycats risk a pounding as Berkshire portfolio suffersBuffett copycats risk a pounding as Berkshire portfolio suffers
NEW YORK (Reuters) - It`s not been a good time for Warren Buffett wannabes. Sharp drops in many of the stocks owned by Buffett`s Berkshire Hathaway in recent weeks hit the sprawling conglomerate`s...
Bond funds stock up on Treasuries in prep for market shockBond funds stock up on Treasuries in prep for market shock
BOSTON (Reuters) - U.S. corporate bond funds this year are adding Treasuries to their holdings at more than twice the rate of corporate debt amid concern that the struggling European economy and pot...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.