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.


DCP Plans New Eagle Ford Gas Processing Plant Near Goliad

DCP Midstream's Eagle Ford System Map
DCP Midstream's Eagle Ford System Map

DCP Midstream along with DCP Midstream Partners plans to build a 200 mmcfd cryogenic processing plant near Goliad, TX. The Goliad Plant has an expected completion date of early 2014.

It will be the seventh plant owned by DCP in South Texas and adds to the company's significant position.

DCP's Eagle Ford System is highlighted by:

  • 6,000 miles of gathering lines
  • >1 Bcfd of processing capacity
  • 3 fractionators with capacity of 36,000 b/d
  • Access to the Sand Hills NGL pipeline
  • Long-term commitments supported by 900,000 acres in the Eagle Ford.
The Goliad plant is another great example of co-investment with our general partner.
— Bill Waldheim, president of DCP Midstream Partners

The Goliad plant will the the third plant in approximately 18 months brought online by the company is South Texas. The 200 mmcfd Eagle Plant will be online in the fourth quarter of 2012 and the 200 mmcfd Pettus Plant is has an in-service date of late 2013 or early 2014. The Goliad Plant is expected to be online in early 2014 as well.

Teak Midstream's Eagle Ford Gathering & Processing Begin Operations

Teak Midstream Eagle Ford Map
Teak Midstream Eagle Ford Map

Teak Midstream has started operations at its South Texas gathering system and its Silver Oak (200 mmcfd) cryogenic processing plant. Teak has long-term midstream agreements with Comstock Resources, Statoil, and Talisman. With significant commitments, the company already plans to expand its gathering system by 200 mmcfd by the first quarter of 2014.

At the center of the development is Teak's Silver Oak Processing Plant, which is located near the community of Pettus, between Beeville and Kenedy in Bee County. The plant is specifically designed to handle high concentrations of liquid-rich gas. From the plant, residue gas will be transported by a 20-inch, 57 mile pipeline to various interstate pipelines and NGLs will be transported by a 12-inch, three mile pipeline to DCP's Sand Hills Pipeline. The Sand Hills pipeline ultimately delivers NGLs in Mont Belvieu.

“Teak Midstream is well positioned to serve new and existing customers who are pursuing liquids-rich gas in the Eagle Ford and other formations in South Texas. The proximity of our extensive gas gathering systems to escalating drilling activity is ideal, and our processing plant has extremely high NGL recoveries, making it one of the most efficient facilities in the region, which can improve wellhead value for our customers,” said TEAK Co-Chief Executive A. Chris Aulds. “

Teak Midstream's new gathering system actually includes two separate systems:

  • One system is 178 miles of 24-inch and 16-inch pipelines that moves wet gas from Dimmit through Webb, La Salle, McMullen, and Live Oak counties on to the Silver Oak Plant
  • The second system is 22-miles of 20-inch pipe moving rich gas from the Karnes area to the Silver Oak Plant in Bee County

Copano Energy Announces 400 mmcf/d Processing Expansion

Copano Energy is adding another 400 mmcf/d processing plant at its Colorado County facility. The cryogenic plant is being built is response to producer demand from the Eagle Ford Shale. The Houston Central complex will have 1.0 Bcf/d of capacity when the project is complete. Copano expects to spend $190 million to construct the facility. The plant is supported by a commitment from a major operator in the Eagle Ford and expected in-service is mid-2014.

"This second cryogenic expansion project reaffirms our commitment to being a leading midstream service provider in the Eagle Ford shale," said R. Bruce Northcutt, President and Chief Executive Officer of Copano Energy. "While we expect to invest capital for this project at a 5-times multiple or better, our producers and customers will also benefit from the expansion through enhanced performance and improved recovery of natural gas liquids."

This is the second major expansion of the facility. The first, is already under construction and will be completed in early 2013.

2012 has been full of midstream announcements. You can read more at our Pipeline and Midstream News page.

Read the full press release at