Atlas Pipeline, Atlas Energy Shares Jump On Buyout Deals

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Shares of Atlas Pipeline Partners surged 13% and Atlas Energy soared 14% in premarket trade Monday, after the oil and gas limited partnerships agreed to be acquired by Targa Resources Partners and Targa Resources , respectively, in deals valued at a total of $7.7 billion. Atlas Pipeline will be bought for $5.8 billion in stock and cash, including $1.8 billion in debt, while Targa Resources is paying $1.87 billion in stock and cash for Atlas Energy. The deals are expected to close in the first quarter of 2015. After the closing, Targa Resources Partners expects distribution growth of 11% to 13% in 2015, while Targa Resources forecasts dividend growth of 35%. Targa Resouces shares rose 1.7% in premarket trade Monday, while Targa Resources Partners were still inactive.

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