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Atlas Pipeline Partners (APL) agrees to acquire privately-held Cardinal Midstream for $600M; APL...

Atlas Pipeline Partners (APL) agrees to acquire privately-held Cardinal Midstream for $600M; APL boosts 2013 EBITDA guidance to $310M-$360 from $250M-$300M. APL expects the deal to be immediately accretive to distributable cash flow per unit by 3%-5% in 2013 and 8%-10% in 2014. To finance the deal, APL will launch a public offering of 9.25M common units. Shares -2.8% AH.
Comments (2)
  • So this stock has been sliding for two days now and then the announcement of a new public offering. Why did the entire market seem to know about this before it was public?
    3 Dec 2012, 08:30 PM Reply Like
  • Definitely strange. I own a small number of shares and saw it down 4% earlier today when I glanced at lunchtime or so and wondered what was going on - thought maybe a pipeline had leaked or something

     

    I'm surprised that a 600 MM deal is only adding 3% to DCF in 2013. Supposedly there are organic projects available at high ROI. But hopefully it will work out well - looks like Atlas in general is betting NG pricing will firm up in 2014 and onwards.
    3 Dec 2012, 09:24 PM Reply Like
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