Targa buying Atlas Pipeline, Atlas Energy
HOUSTON (AP) — Targa Resources is buying Atlas Pipeline Partners and Atlas Energy in a deal valued at close to $6 billion, created a huge energy transportation and storage company.
Targa Resources Partners LP, based in Houston, will pay $4 billion and assume $1.8 billion in debt. Each Atlas Pipeline unitholder will receive 0.5846 units of Targa Resources Partners and a one-time cash payment of $1.26 per Atlas Pipeline unit for total consideration of $38.66 per Atlas Pipeline unit.
Atlas Pipeline is based in Tulsa, Oklahoma.
Atlas Energy LP will spin off its non-midstream assets before the buyout. The acquisition of Atlas Energy consists of $610 million in cash and 10.35 million Targa Resources Corp. shares valued at approximately $1.26 billion.
The deal is expected to close early next year.