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Acquired Elk City gathering & processing system and associated midstream assets, gaining 800 miles of pipeline complementary to existing Anadarko system.

Enbridge Pipelines (TX Gathering) LP, an affiliate of Enbridge Energy Partners LP, Houston, (NYSE: EEP) has closed its acquisition of certain midstream assets in the Granite Wash trend in Oklahoma and Texas from Atlas Pipeline Partners LP (NYSE: APL) for $686.1 million.

The deal increased from its originally announced $682 million value.

The assets include the Elk City gathering and processing system (ECOP) comprising 800 miles of gas-gathering pipeline extending from Washita County, Oklahoma, to Hemphill County, Texas; one hydrogen sulfide treating plant; three cryogenic processing plants with total capacity of 370 million cubic feet per day; and a combined current NGL production capability of 20,000 barrels per day.

The assets complement Enbridge's Anadarko system, which includes six gas-processing plants and approximately 1,800 miles of gas-gathering and transportation pipelines in southwestern Oklahoma and the Texas Panhandle. The partnership expects the acquisition to be accretive to earnings upon integration with its Anadarko system.

Atlas Pipeline will use the proceeds to pay its $422-million secured term loan and $250 million of its revolving credit facility, leaving approximately $340 million of liquidity under this line.

Atlas Pipeline chief executive Eugene Dubay says, "We are pleased to announce the closing of the Elk City transaction. By using the proceeds to deleverage and improve the balance sheet, our company is positioned to take advantage of our significant organic growth projects in the Marcellus shale and Midcontinent."

Enbridge president Terrance L. McGill says, "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."

McGill adds, "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."