Attorneys with the law firm of Thompson & Knight LLP represented Dallas-based Cardinal Midstream LLC in the company’s recent $600 million sale of its natural gas processing, treatment, and pipeline systems in the Woodford Shale region of southeastern Oklahoma to Atlas Pipeline Partners L.P. of Philadelphia.
Attorneys Wesley P. Williams and Arthur J. Wright led the Thompson & Knight team on behalf of Cardinal Midstream. They were supported by Firm attorneys R. David Wheat of Dallas and Anna R. Irion of Houston. The transaction, announced on Dec. 3, 2012, is awaiting regulatory approval and is expected to close before the end of the year.
Under the terms of the agreement, Atlas will purchase three of Cardinal’s subsidiary companies: Cardinal Arkoma Inc., Cardinal Arkoma Midstream LLC, and Cardinal Gas Treating LLC. The combined assets include three facilities with a processing capacity of 220 million cubic feet of natural gas per day, approximately 66 miles of gathering pipelines, a natural gas contract treating business, and other treating and compression facilities.
“While smaller than some of the more notable shale regions in the U.S., the Woodford basin is considered by many experts to be one of the nation’s thickest and highest-quality oil and gas reservoirs,” says Wright, a Partner in the Firm’s Dallas office and Oil and Gas Practice Leader. “Thompson & Knight attorneys expect the region will continue to see a great deal of transactional interest in the coming year.”
Founded in 2008, Cardinal is a midstream energy company led by an experienced management team and backed by private equity commitments from EnCap Flatrock Midstream and EnCap Investments L.P. Cardinal’s management team will retain the Cardinal Midstream name and continue to pursue midstream development opportunities across North America.
