Atlas Pipeline Expects Full Utilization at Eagle Ford Processing Plants

Atlas Pipeline Partners Eagle Ford System
Atlas Pipeline Partners Eagle Ford System

Atlas Pipeline acquired Teak Midstream earlier in the year and now expects to reach full utilization at its two processing plants (400 mmcfd) by year-end 2014.

The company's Silver Oak I plant is online with capacity of 200 mmcfd and the Silver Oak II plant (200 mmcfd) will be online in the first quarter of 2014.

Atlas is currently processing 155 mmcfd and expects full utilization of its first plant by year-end and full utilization of both plants by year-end 2014.

The 155 mmcfd being processed represents growth of 20% from the second quarter average of 122 mmcfd.

The company also has plans for a third Silver Oak plant with capacity of 200 mmcfd. The plant is still pending board approval, but it could increase the company's processing capacity to 600 mmcfd sometime in the second half of 2015.

 

Atlas - Teak Eagle Ford Midstream Deal Worth $1 Billion

Teak Midstream Eagle Ford Map
Teak Midstream Eagle Ford Map

Atlas Pipeline Partners has agreed to buy Eagle Ford Midstream assets through a $1 billion acquisition ofTeak Midstream, LLC. Atlas will gain Teak's operated assets and assets that are jointly owned with TexStar Midstream.

Assets acquired in the deal included:

  • 200 MMcfd of cryogenic processing plant (Silver Oak)
  • 200 MMcfd cryogenic processing facility under construction (Silver Oak II)
  • 265 miles of 20" to 24" gathering and residue pipelines with 750 mmcfd of capacity
  • 275 miles of low pressure gathering lines

Atlas will also acquire a 50-75% interest in several assets jointly owned with TexStar Midstream. Atlas is expected to operated the assets once the deal closes:

  • 235 miles of pipeline, including rich gas gathering, header, and residue pipelines
  • 3 miles of NGL pipeline
  • A Co-Gen facility, which will produce power for the Silver Oak complex
“We are very excited about the acquisition of TEAK Midstream. We have been looking at the Eagle Ford shale for a number of years and are fortunate to have found what we believe is the ideal entry point. TEAK’s assets are the highest quality and best positioned for growth with minimal capital requirements. The assets are new, highly efficient, and are located in the heart of one of the most prolific plays in North America. ”
— Eugene Dubay, Atlas CEO

 

Atlas expects to further expand the assets going forward. Expansion projects include the potential for additional gathering lines and a third 200 mmcfd processing plant.