Dallas-based Energy Transfer Partners LP. (ETP) said last week that it has closed on the sale of its Oklahoma gathering, treating and processing assets, referred to as the Elk City system, to Atlas Pipeline Partners LP. for $190 million. The proceeds will be used to repay debt incurred in its recent acquisition of the Houston Pipe Line system and related storage facilities (see NGI, Jan. 31).
First announced in March, ETP said the sale is expected to allow the company to devote more attention to its core midstream assets, which are located in Texas, and to perhaps consider other acquisitions.
"The divestiture of our non core assets in Oklahoma allows management to fully focus on integrating and optimizing profitability of the company's midstream asset base in Texas including those assets acquired in Texas during the last 12 months," said Energy Transfer President H. Michael Krimbill. "In addition, we can capitalize on the internal growth projects provided by those assets while strengthening our balance sheet in order to finance those projects currently identified."
Total gas throughput, including 118 MMcf/d processed at the Elk City plant, is currently 262 MMcf/d. Total compression consists of 21,000 horsepower at six field stations and 12,000 horsepower within the Elk City facility. The Elk City system gathers and processes gas from more than 300 receipt points representing more than 50 producers, and it delivers that gas into multiple interstate pipeline systems.
Pennsylvania-based Atlas Pipeline Partners LP. is engaged in acquiring, owning and operating gas gathering systems. It owns and operates 3,280 miles of gathering and a gas processing facility in Velma, OK.
Energy Transfer's operations include 11,700 miles of natural gas gathering and transportation pipelines with an aggregate throughput capacity of 7.2 Bcf/d, with natural gas treating and processing assets located in Texas and Louisiana.
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