Source: Enbridge Energy Parnters
Enbridge Energy Partners, L.P. (NYSE: EEP) plans to acquire the entities that comprise the Elk City Gathering and Processing System from Atlas Pipeline Partners (NYSE:APL) for $682 million. The acquisition is expected to close by late third quarter or in fourth quarter 2010, and will be accretive to earnings upon integration with the Partnership's Anadarko system.
"Consolidation of these assets with our Anadarko system will provide immediate benefits to natural gas producers in the area and the Partnership. The ECOP system has excess processing capacity available, and the Partnership has access to excess rich gas that can be used to fill this capacity," said Terrance L. McGill, president of Enbridge's management company and of its general partner.
"Strategically, this acquisition further solidifies Enbridge's ability to capitalize on growth in the Granite Wash and is consistent with the Partnership's objective to increase distributable cash flow to unit holders. This acquisition, other development projects and the strong performance of our existing assets are all factors contributing to the Partnership's recently announced distribution increase," McGill added.
The ECOP system comprises 800 miles of natural gas gathering pipeline, one hydrogen sulfide treating plant, three cryogenic processing plants with a total capacity of 370 million cubic feet per day and a combined current NGL production capability of 20,000 barrels per day.
Extending from Washita County in southwestern Oklahoma to Hemphill County in the Texas Panhandle, the ECOP system complements the Partnership's Anadarko system, which includes six natural gas processing plants and approximately 1,800 miles of natural gas gathering and transportation pipelines in southwestern Oklahoma and the Texas Panhandle.
