Atlas Pipeline to Buy TEAK Midstream for $1 Bln

Atlas Pipeline Partners has agreed to buy TEAK Midstream for $1 billion. The transaction is expected to close in May. TEAK, which is backed by Natural Gas Partners, is a Dallas-based midstream natural gas company. Evercore Partners acted as TEAK’s financial adviser.

PRESS RELEASE

TEAK Midstream, L.L.C., a Natural Gas Partners-sponsored company, announced the company has signed a definitive agreement with a wholly owned subsidiary of Atlas Pipeline Partners, L.P. whereby Atlas will acquire 100 percent of TEAK’s equity interests for $1 billion in cash. The transaction is expected to close in May 2013 subject to certain regulatory approvals and customary closing conditions.

TEAK’s assets include an interest in 265 miles of primarily 20-to-24-inch diameter natural gas gathering and residue delivery pipelines and all of the adjoining Silver Oak 200 million cubic feet per day (MMcf/d) cryogenic gas processing plant in the heart of the liquids-rich Eagle Ford Shale oil and gas play in South Texas. In addition, Silver Oak II, a second 200 MMcf/d cryogenic gas processing plant, is expected to be delivered for installation in May 2013 and operational during the first quarter of 2014.

“We are extremely gratified that TEAK is being acquired by such a well-respected midstream company as Atlas. Their go-forward strategy, vision for growth and business values complement what we have built in the Eagle Ford Shale since we established the company in 2009,” said A. Chris Aulds, TEAK Co-Chief Executive. “We want to assure our existing and potential customers that TEAK is partnering with Atlas to offer the same top-quality services and solutions we always have. We are working together to ensure all customers’ needs are met. I know that Atlas is as committed as we are to making customers their first priority.”

“Our objective was to build a significant midstream company operated primarily in the prolific Eagle Ford Shale play and surrounding area. We thank our loyal and highly skilled employees for helping us accomplish this goal. The TEAK team has always done an outstanding job of assisting our customers with their growing midstream needs by providing value-added solutions, and they will continue to do so. Atlas has displayed the same entrepreneurial spirit and company culture we enjoy, so we are extremely pleased that TEAK employees will become an important addition to and integral part of the Atlas team,” said TEAK Co-Chief Executive Jim Wales.

TEAK’s assets also include the 275-mile low-pressure Texana gathering system in South and East Texas, which the company acquired in July 2010.

Evercore Partners acted as TEAK’s financial adviser and Thompson & Knight LLP acted as TEAK’s legal adviser for the transaction.

About TEAK Midstream

TEAK Midstream, L.L.C., a Dallas-based midstream natural gas company, provides gathering, transmission, treating, processing, compression and marketing services in key gas producing areas of the United States. TEAK was founded in October 2009 and currently has operations throughout South and East Texas. TEAK Midstream is a portfolio company of Natural Gas Partners. For more information on TEAK Midstream, visit www.teakmidstream.com.

About Natural Gas Partners

Founded in 1988, Natural Gas Partners (NGP) is a family of private equity investment funds organized to make investments in the energy and natural resources sectors. NGP is part of the investment platform of NGP Energy Capital Management, a premier investment franchise in the natural resources industry, which together with its affiliates has managed $13 billion in cumulative committed capital since inception. www.naturalgaspartners.com

About Atlas Pipeline Partners, L.P.

Atlas Pipeline Partners, L.P. (NYSE: APL) is active in the gathering and processing segments of the midstream natural gas industry. In Oklahoma, southern Kansas, northern and western Texas, and Tennessee, APL owns and operates 13 active gas processing plants, 18 gas treating facilities, as well as approximately 10,600 miles of active intrastate gas gathering pipeline. APL also has a 20 percent interest in West Texas LPG Pipeline Limited Partnership, which is operated by Chevron Corporation. For more information, visit the Partnership’s website at www.atlaspipeline.com or contact IR@atlaspipeline.com.