TEAK Midstream announced in late April that the company will sell to Atlas Pipeline Partners. The sale was complete in May.
Chris Aulds, co-CEO for TEAK, said the company was pleased with the transaction.
“We are 100 percent focused on the transition now,” he said. “We are committed to making it as smooth as possible.”
Not only did Atlas buy the Silver Oak I Cryogenic plants but also the TEAK Company as a whole, which includes over 540 miles of natural gas gathering lines and the Silver Oak II Cryogenic plant, which will be completed in 2014.
Matt Skelly, vice president of investor relations for Atlas Pipeline Partners, L.P., said the company has been looking at purchasing assets in the Eagle Ford for some time.
“We think this play is the best in America; we just had to find the right entry point,” Skelly said. “These assets checked every box.”
Aulds is also pleased that TEAK will be selling to a company that has the same values. Aulds said TEAK had a family atmosphere and states Atlas has the same.
“From a culture prospective, I think we are the same,” Skelly said.
He added that all the current TEAK employees were offered jobs with Atlas, and additional jobs will be available as the rest of the cryogenic plants come online.
Another box that was checked when Atlas was looking for Eagle Ford assets to purchase was TEAK’s “long-term organic growth plan.”
The Silver Oak I 200 million-cubic feet per day cryogenic plant is already online, a second plant (Silver Oak II) is expected to be delivered by this summer and be operational by the first quarter of 2014, and “further additional expansion could be undertaken as conditions warrant”. There are also plans in place to finish filling the capacity of the first plant.
Skelly says Atlas has a goal of “making sure we stay on target to follow that growth plan.”
Skelly said he and his company are not “serial acquirers” and took the TEAK purchase very seriously. The company paid $1 billion for the TEAK assets. In every area that Atlas has made purchases, it has been able to expand those operations.
Atlas currently owns and operates gas processing plants and pipeline gathering systems in western Texas, Oklahoma, southern Kansas and Tennessee.