Atlas Pipeline Partners LP (NYSE: APL) has retained Citigroup Global Markets Inc. to begin a strategic review of its ownership interest in the West Texas LPG Pipeline Limited Partnership (WTXLPG). To the extent that Atlas Pipeline executes any transaction, the potential proceeds will be used to fund part of its significant growth opportunities in its core operating areas.
WTXLPG owns a 2,295-mile common-carrier y-grade natural gas liquids pipeline operated by a subsidiary of Chevron Corp. Atlas Pipeline owns a 20% interest in WTXLPG. The pipeline receives natural gas liquids from multiple receipt points in the Permian Basin and Barnett shale play in Texas, and transports volumes to Mont Belvieu, Texas, for fractionation.
Atlas Pipeline Partners is active in the gathering and processing segments of the midstream natural gas industry. In Oklahoma, southern Kansas, Texas, and Tennessee, the company owns and operates 14 active gas processing plants, 18 gas treating facilities, as well as approximately 11,200 miles of active intrastate gas gathering pipeline.