Major plus for Atlas Pipelines revenue and earnings growth going forward with increased FFCF. Cardinal will also help with Atlas' goal to continue hedging NG futures. Buyer here at this level.
As a result of the transaction, the Partnership owns 100% of the following assets:
A 120 MMcfd cryogenic processing facility (the Tupelo plant) in the Arkoma Woodford basin;
Approximately 60 miles of gathering lines that gather both rich and lean gas;
28,500 horsepower compression capability, including a 42 MMcfd compression facility and a treating facility; and
A gas treating business, which includes contract gas treating operations in multiple shale plays including the Woodford, Eagle Ford, Granite Wash, Avalon, Haynesville, and Fayetteville shales. Included are 15 amine treating facilities as well as two propane refrigeration facilities. The business generates fixed fee cash flow through the treatment of wellhead volumes to reduce impurities and is 100% fixed fee cash flow
Transaction is expected to be immediately accretive to DCF by 3% to 5% in 2013 and 8% to 10% in 2014 - Atlas Pipeline increases 2013 EBITDA guidance by over 20% to $310 to $360 million - Provides new entry as the largest midstream processer in liquids-rich basin of Arkoma-Woodford - Majority of Cardinal Midstream's cash flows derived from fixed fee contracts - Acquisition includes 60% operated interest in Centrahoma JV with MarkWest Energy Partners - Owned and/or operated assets include 220 MMcfd of processing capacity and associated gathering lines as well as gas treating business