Pipeline company Targa Resources Corp and its unit Targa Resources Partners LP said they would purchase Atlas Energy LP and Atlas Pipeline Partners LP for $5.9 billion, excluding debt.Targa Resources Corp, which said in June it ended merger talks with Energy Transfer Equity LP, will buy Atlas Energy for $1.9 billion after Atlas spins off its non-midstream assets.Master limited partnerships (MLPs), constantly under pressure to grow shareholder distributions, have been very active deal makers. MLPs pay very little taxes and distribute most of their earnings to shareholders.Targa Resources said it expects its distributions to grow by about 35 percent next year after the deal closes, while Targa Resources Partners is targeting distribution growth of 11-13 percent after the $4 billion deal closes.
Atlas Pipeline Partners, L.P. is a provider of natural gas gathering and processing services in the Anadarko and Permian Basins located in the southwestern and mid-continent regions of the United States; a provider of natural gas gathering services in the Appalachian Basin in the northeastern region of the United States and a provider of natural gas liquid (NGL) transportation services in the southwestern region of the United States. Shares of APL traded higher by 8.8% or $2.96/share to $36.58. In the past year, the shares have traded as low as $28.88 and as high as $40.02. On average, 454732 shares of APL exchange hands on a given day and today's volume is recorded at 298115.
Atlas Energy, L.P. (Atlas Energy) is a limited partnership. Shares of ATLS traded higher by 19.38% or $6.28/share to $38.69. In the past year, the shares have traded as low as $32.01 and as high as $52.36. On average, 447166 shares of ATLS exchange hands on a given day and today's volume is recorded at 960171.
Energy Transfer Equity, L.P. (Energy Transfer Equity) is a limited partnership company. Shares of ETE remained unchanged at $51.54. In the past year, the shares have traded as low as $32.54 and as high as $63.53. On average, 1365720 shares of ETE exchange hands on a given day and today's volume is recorded at 42566.
Targa Resources Partners LP is a limited partnership formed by Targa Resources, Corp (Targa). Shares of NGLS fell by 1.27% or $-0.81/share to $63.17. In the past year, the shares have traded as low as $48.09 and as high as $83.49. On average, 312049 shares of NGLS exchange hands on a given day and today's volume is recorded at 36953.
Targa Resources Corp. (Targa) forms the Partnership to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. Shares of TRGP traded higher by 1.22% or $1.48/share to $123.13. In the past year, the shares have traded as low as $72.80 and as high as $160.97. On average, 274305 shares of TRGP exchange hands on a given day and today's volume is recorded at 39666.
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