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| On May 14,
2004, Atlas Pipeline Partners,
L.P. moved to the New York
Stock Exchange. The management
team rang the opening bell
at the Exchange to celebrate
the new listing. The Partnership
trades under the same symbol,
“APL”. |
Announcements of APL Distributions to Unitholders
Atlas Pipeline Partners, L.P. (“APL”) will announce cash distributions to its unitholders at the end of the month following the close of each quarter. We will issue a press release announcing the amount of the current distribution as well as the ex-dividend and pay dates at that time.
Company Objectives
Our objective is to increase cash flow, earnings and returns to our unitholders. We plan to accomplish this by expanding our revenue base through: the construction of extensions necessary to service additional wells drilled by Atlas Energy Resources, LLC (NYSE: ATN) and others in the Appalachia Basin; through organic growth of midstream energy assets such as natural gas gathering, transmission, processing and storage facilities and liquid gathering, transmission and storage facilities, particularly in the Mid-Continent region of Oklahoma and Texas; and by means of accretive acquisitions in these and other prospective regions. We also plan to continue to strengthen our balance sheet by financing our growth with a combination of long-term debt and equity to provide the financial flexibility for funding future opportunities. We believe that the extensive prior experience of our management team in the natural gas midstream business provides us with a competitive advantage in executing our growth strategy to achieve our business objectives.
Acquisition
of Controlling Interest in Anadarko
Assets
On July 27, 2007,
APL acquired control of Anadarko
Petroleum Corporation’s
(NYSE: APC) (“Anadarko”)
100% interest in the Chaney Dell
natural gas gathering system and
processing plants located in Oklahoma
and its 72.8% undivided joint
venture interest in the Midkiff/Benedum
natural gas gathering system and
processing plants located in Texas.
In connection with the Partnership’s
acquisition of control of the
Chaney Dell and Midkiff/Benedum
systems, the joint ventures issued
cash to Anadarko of $1.9 billion.
The Midkiff/Benedum
joint venture has a 72.8% undivided
joint venture interest in the
Midkiff/Benedum system, of which
the remaining 27.2% interest is
owned by Pioneer Natural Resources
Company (NYSE: PXD) (“Pioneer”).
Business
Overview
Atlas Pipeline
Partners, L.P. is a master limited
partnership with common units
traded on the New York Stock Exchange
under the symbol “APL”.
In January 2000, APL completed
its initial public offering of
1.5 million of its common units
at a price of $13.00 and subsequently
acquired the gas gathering operations
of Atlas America, Inc. (NASDAQ:ATLS)
and its affiliates, located in
the Appalachian Basin. Currently,
in Appalachia, we gather natural
gas through our pipeline system
from more than 6,500 wells on
over 1,600 miles of gathering
systems for delivery to a variety
of customers on major intra-and/or
interstate pipeline systems and
a limited number of direct end-users.
This transported gas is primarily
controlled by Atlas Energy Resources.
In the Mid-Continent
region, APL owns and operates
approximately 565 miles of FERC
regulated interstate pipeline
and 7,900 miles of gas gathering
pipeline. Currently, APL has daily
natural gas throughput of over
1.1 billion cubic feet (bcf) per
day amongst its gathering, processing
and transportation systems. APL
transports approximately 510 million
cubic feet of gas per day from
more than 1,250 receipt points
and wells to interstate pipelines
in northeastern and central Arkansas,
local distribution companies in
Arkansas and Missouri, and to
its gas processing and treating
facilities in northern and western
Oklahoma and western Texas, where
natural gas liquids (NGL) and
impurities are removed. APL then
sells the processed residue gas
and NGLs and remits a portion
of those proceeds to the producer.
In the Mid-Continent and in Appalachia,
the fees paid to APL are based
on a percentage of the gross selling
price of the gas or NGL, fixed
fee per mcf transported or on
percent of index.
Our Mid-Continent
operations began in July 2004,
when APL acquired Spectrum Field
Services, Inc. (“Spectrum”),
for approximately $143.1 million,
including transaction costs. Spectrum’s
principal assets included 1,900
miles of natural gas pipelines
and a natural gas processing facility
in Velma, Oklahoma.
Relationship
with Affiliated Atlas Companies.
Atlas America Inc.
Atlas America,
Inc. owns ~ 64% of the limited
partner common interest in Atlas
Pipeline Partners, L.P.'s general
partner, Atlas Pipeline Holdings,
L.P. (NYSE: AHD). Atlas America
also owns 48% of the common interest
and all of the management incentive
interests in Atlas Energy Resources,
for which APL gathers most of
the gas produced by Atlas Energy
in Appalachia.
Under our transportation
agreement with Atlas America,
through Atlas Energy, the gathering
fees we receives are equal to
a percentage of the gross or weighted
average sales price of the natural
gas we transport. Our business
therefore depends in large part
upon the volume of gas we transmit
and the prices at which the natural
gas we transport is sold.
Atlas Pipeline Holdings, L.P.
Atlas Pipeline
Holdings, L.P. (NYSE: AHD) owns
100% of our general partner interest,
which includes all of the incentive
distribution rights as well as
an additional 5.5 million units
of limited partner interest (or
~ 14%) in APL. For more information,
please visit our website at www.atlaspipelineholdings.com,
or contact Investor Relations
at bbegley@atlasamerica.com.
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