Martin Midstream Partners LP (NASDAQ: MMLP) completed the acquisition of Atlas Pipeline Partners LP (NYSE: APL) subsidiaries for $135 million in cash, the company announced May 14.
Kilgore, Texas-based Martin acquired all of the outstanding membership interests in Atlas Pipeline NGL Holdings LLC and Atlas Pipeline NGL Holdings II LLC, which together owns a 20% stake in West Texas LPG Pipeline LP (WTLPG). WTLPG is operated by Chevron Pipe Line Co., an affiliate of Chevron Corp. (NYSE: CVX), which owns the remaining 80% interest.
WTLPG owns some 2,300 miles of pipeline with long-haul capacity of an estimated 240,000 barrels per day and volumes that have been at or near capacity since 2011. This transaction marks the first significant investment by Martin tied to the growing Permian Basin.
Citigroup Global Markets Inc. was financial advisor and Jones Day was legal advisor for Atlas. Philadelphia-based Atlas Pipeline Partners is the midstream subsidiary of Atlas Energy LP (NYSE: ATLS), a master limited partnership (MLP) which also owns the upstream subsidiary Atlas Resource Partners LP.
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