Gas Pipeline Partners owns and operates midstream assets
A complex multipart transaction involving several corporate entities will add to Targa's holdings in West Texas' Permian Basin, and gain it entry into three more booming regions - the Eagle Ford in South Texas; Mississippi Lime in Oklahoma and Kansas; and South-Central Oklahoma Oil Province plays in Oklahoma.
The new assets will also add to Targa's natural gas liquid processing and transportation facilities, now anchored by a Gulf Coast export terminal.
AtlThe largest chunk of the deal will be Targa Resources Partners' acquisition of Atlas Pipeline Partners for $4 billion in cash and stock. Targa will also assume about $1.8 billion in debt. Gas Pipeline Partners owns and operates midstream assets in Oklahoma, Kansas, Texas and Tennessee, including gas processing plants, gas treating facilities and gas gathering pipeline.
Each Atlas Pipeline Partners unit-holder will receive 0.5846 units of Targa Resources Partners and a cash payment of $1.26 per unit.
In the second part of the deal, Targa will purchase Atlas Energy LP for a total of $1.87 billion, including 10.35 million Targa Resources shares valued at $1.2 billion and $610 million in cash.