Atlas Pipeline Partners, L.P. Reports Third Quarter 2009 Results
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PHILADELPHIA--(BUSINESS WIRE)-- Atlas Pipeline Partners, L.P. (NYSE: APL) ("APL" or the "Partnership") today reported financial results for the third quarter 2009.
Highlights from the third quarter 2009 and recent events include the following:
-- Adjusted earnings before interest, income taxes, depreciation and
amortization ("adjusted EBITDA"), a non-GAAP measure, was $29.3 million
in the third quarter 2009 compared to $80.7 million for the prior year
comparable quarter. Adjusted EBITDA for the third quarter 2009 included
approximately $19.0 million of realized losses from legacy derivative
positions, partially offset by a realized cash gain on asset sales of
approximately $1.5 million. A reconciliation of non-GAAP measures,
including adjusted EBITDA and distributable cash flow, is provided
within the financial tables of this release;
-- Excluding the approximately $1.5 million gain on asset sales and the
approximately $19.0 million of realized hedge losses in the third
quarter 2009 discussed above, adjusted EBITDA would have been $46.8
million compared with adjusted EBITDA of $80.7 million for the prior
year comparable quarter. The decrease between periods was primarily due
to lower overall commodity prices combined with reduced earnings
resulting from the sale of income-generating assets during the second
quarter of 2009;
-- Net loss was $12.3 million compared with net income of $201.2 million
for the prior year third quarter. The decrease between periods was
primarily due to mark to market gains on certain derivatives in the
prior year period as a result of the decline in crude oil prices, as
well as overall lower commodity prices in the current period; and
-- The Partnership closed the sale of the Sweetwater II processing facility
("Sweetwater II"), a redundant natural gas processing facility, to Penn
Virginia Resource Partners, LP. The property sold had been superseded by
the Partnership's new Nine Mile processing facility completed earlier
this year and is likewise located in western Oklahoma. Total proceeds
from the transaction of approximately $22.6 million were used to reduce
indebtedness.
"We are pleased to report another quarter of solid performance," said Eugene N. Dubay, chief executive officer of Atlas Pipeline Partners, L.P. "For the quarter, we received average natural gas liquids price of $0.75, up 12% versus our second quarter 2009 price of $0.67. Since the end of the quarter, our margins have further improved as the outlook for NGLs has strengthened on increasing economic fundamentals. While the past year has been challenging, we are making significant progress on our initiatives to maximize the capacity of our systems, and to improve our balance sheet for the benefit of all stakeholders. We are confident we can deliver on all these objectives."
Midkiff Consolidator Plant
The Partnership and Pioneer Natural Resources Company (NYSE: PXD), which owns a 27.2% undivided interest, are in the process of upgrading the processing facilities on the Midkiff-Benedum system in the Permian Basin of western Texas. The Consolidator gas plant is being constructed at APL's Midkiff location and is progressing on budget and on schedule for a mid-November 2009 startup. The Consolidator plant will extract an incremental 3,200 barrels per day ("bpd") of natural gas liquids ("NGL") (primarily ethane) from existing processed natural gas volumes and will also offer increased reliability, reduced emissions and additional operating efficiencies. The new cryogenic plant also provides an incremental 40 million cubic feet per day ("mmcf/d") of processing capacity to pursue the numerous growth prospects in the Spraberry area and the ability to accommodate the robust 2010 drilling programs by producers in the Permian Basin of Western Texas.
Mid-Continent Segment Results
-- The Velma system's average natural gas processed volume was 78.7 Mmcfd
for the third quarter 2009, an increase of approximately 29.2% compared
with the prior year comparable quarter. This increase is primarily due
to the expansion of the gathering system and connections made to new
production through the recently installed Madill to Velma pipeline.
Average NGL production also increased to 8,922 bpd, an increase of 35.3%
compared to the prior year third quarter.
-- The western Oklahoma systems, comprised of the Elk City/Sweetwater and
Chaney Dell complexes, had average NGL production of 24,168 bpd and
average natural gas processed volume was 402.7 Mmcfd for the third
quarter 2009. System volumes were impacted by decreased drilling in
western Oklahoma and producer well shut-ins because of lower natural gas
prices.
-- The Midkiff/Benedum system's average natural gas processed volume was
152.3 Mmcfd for the third quarter 2009, an increase of approximately
11.5% compared with the prior year comparable quarter. Average gross NGL
production volumes increased to 19,926 bpd, up 5.3% when compared to the
prior year comparable quarter.
Appalachia Segment Results
-- Gross margin for the Appalachia segment, including $1.4 million of
equity income from its interest in Laurel Mountain Midstream, LLC
("Laurel Mountain") was $2.9 million for the third quarter 2009 compared
with $10.1 million for the prior year comparable quarter. The decrease
is due to APL's contribution of the majority of the Appalachia system to
Laurel Mountain, the joint venture established between the Partnership
and The Williams Companies (NYSE: WMB), in which APL has a 49% ownership
interest. Laurel Mountain generated $9.6 million in revenues and $2.4
million in net income during third quarter 2009.
-- Gross throughput volume on the Appalachia system, including 100% of the
volumes of Laurel Mountain, increased to 106.0 Mmcfd for the third
quarter 2009, an increase of approximately 15.4% compared with the prior
year third quarter, resulting from the connection of new wells to the
Appalachia gathering system from drilling activity by APL's affiliate,
Atlas Energy Inc. (NASDAQ: ATLS).
Corporate and Other
-- General and administrative expense, including amounts reimbursed to
affiliates, was $8.8 million for the third quarter 2009 compared with
income of $2.7 million for the prior year third quarter. The prior year
third quarter included a $13.3 million gain related to a non-cash
mark-to-market reduction in share-based compensation expense. Excluding
this gain, general and administrative expense decreased $1.8 million
compared to third quarter 2008.
-- Depreciation and amortization increased to $21.9 million for the third
quarter 2009 compared with $20.7 million for the prior year third
quarter due primarily to expansion capital expenditures incurred
subsequent to third quarter 2008, offset by the sale of certain assets
in the second quarter 2009.
-- Net of deferred financing costs, interest expense increased to $26.5
million for the third quarter 2009 as compared with $20.8 million for
the comparable prior year period. This increase was primarily due to an
increase in the interest rate on our revolver and senior secured term
loans as a result of the amendment to our credit facility in May 2009,
offset by a $183 million diminution in debt outstanding.
-- At September 30, 2009, the Partnership had $1.243 billion of total debt
which includes $433.5 million outstanding on its term loan that matures
in 2014, $494.5 million of 8 1/8% and 8 7/8% senior unsecured notes that
mature in 2015 and 2018, respectively, and $315.0 million of outstanding
borrowings under its $380.0 million revolving credit facility that
matures in 2013. Up to $50.0 million of the credit facility may be
utilized for letters of credit, of which $9.1 million was outstanding at
September 30, 2009. Remaining available borrowings on the credit
facility are $55.9 million.
-- The credit facility contains customary covenants, including maintaining
the following ratios as of the fiscal quarter ending September 30, 2009:
o Maximum Leverage - 6.50x
o Maximum Senior Secured Leverage - 3.75x
o Minimum Interest Coverage - 2.50x
The Partnership is in compliance with all of its covenants under the
credit facility. As of September 30, 2009, the Partnership's Leverage
ratio was 4.2x, its Senior Secured Leverage ratio was 2.5x, and its
Interest Coverage ratio was 3.3x.
Interested parties are invited to access the live webcast of an investor call with management regarding the Partnership's third quarter 2009 results on Wednesday, November 4, 2009 at 9:00 am ET by going to the Investor Relations section of the Partnership's website at www.atlaspipelinepartners.com. An audio replay of the conference call will also be available beginning at 11:00 am ET on Wednesday, November 4, 2009. To access the replay, dial 1-888-286-8010 and enter conference code 60143730.
Atlas Pipeline Partners, L.P. is active in the gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, southern Kansas, northern and western Texas and the Texas panhandle, APL owns and operates eight active gas processing plants and a treating facility, as well as approximately 8,750 miles of active intrastate gas gathering pipeline. In Appalachia, APL is a 49% joint venture partner with Williams in Laurel Mountain Midstream, LLC, which manages the natural gas gathering system in that region, namely from the Marcellus Shale in southwestern Pennsylvania. For more information, visit the Partnership's website at www.atlaspipelinepartners.com or contact investorrelations@atlaspipelinepartners.com.
Atlas Pipeline Holdings, L.P. is a limited partnership which owns and operates the general partner of Atlas Pipeline Partners, L.P., through which it owns a 2% general partner interest, all the incentive distribution rights and approximately 5.8 million common and 15,000 $1,000 par value 12% preferred limited partner units of Atlas Pipeline Partners, L.P.
Atlas Energy, Inc. is one of the largest independent natural gas producers in the Appalachian and Michigan Basins and a leading producer in the Marcellus Shale in southwestern Pennsylvania. Atlas Energy, Inc. is also the country's largest sponsor and manager of tax-advantaged energy investment partnerships that finance the exploration and development of Atlas Energy, Inc.'s acreage. Atlas Energy, Inc. also owns 1.1 million common units in APL and a 64% interest in AHD. For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at InvestorRelations@atlasamerica.com.
Certain matters discussed within this press release are forward-looking statements. Although Atlas Pipeline Partners, L.P. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, inability of the Partnership to successfully integrate the operations at the acquired systems, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in Atlas Pipeline's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Financial Summary
(unaudited; in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008(1) 2009(1) 2008(1)
Revenue:
Natural gas and liquids $ 194,440 $ 396,739 $ 526,478 $ 1,186,688
Transportation,
compression and other fees 380 11,916 16,877 32,496
- affiliates
Transportation,
compression and other fees 4,719 6,125 12,574 16,792
- third parties
Equity income in joint 1,430 2,140
venture
Gain on asset sales 1,499 111,440
Other income (loss), net 4,065 153,878 (6,431 ) (247,136 )
Total revenue and other 206,533 568,658 663,078 988,840
loss, net
Costs and expenses:
Natural gas and liquids 144,990 314,315 409,411 937,852
Plant operating 14,762 16,652 42,713 46,418
Transportation and 134 2,883 6,256 7,842
compression
General and administrative 8,379 (3,832 ) 24,846 8,325
Compensation reimbursement 375 1,175 1,125 3,694
- affiliates
Depreciation and 21,896 20,741 67,563 61,200
amortization
Interest 28,320 22,098 75,820 62,663
Total costs and expenses 218,856 374,032 627,734 1,127,994
Income (loss) from (12,323 ) 194,626 35,344 (139,154 )
continuing operations
Discontinued operations:
Gain on sale of - 51,078
discontinued operations
Income from discontinued - 6,538 11,417 21,029
operations
Income from discontinued - 6,538 62,495 21,029
operations
Net income (loss) (12,323 ) 201,164 97,839 (118,125 )
Income attributable to (954 ) (2,591 ) (2,075 ) (7,793 )
non-controlling interests
Preferred unit dividends (650 ) (900 ) (1,437 )
Preferred unit imputed (505 )
dividend cost
Net income (loss)
attributable to common $ (13,277 ) $ 197,923 $ 94,864 $ (127,860 )
limited partners and the
general partner
See footnotes at the end of this earnings release.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Financial Summary
(unaudited; in thousands, except per unit amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008(1) 2009(1) 2008(1)
Allocation of net income
(loss) attributable to common
limited partners and the
general partner:
Common limited partner
interest:
Continuing operations $ (13,011 ) $ 179,466 $ 31,718 $ (168,897 )
Discontinued operations - 6,406 61,239 20,606
(13,011 ) 185,872 92,957 (148,291 )
General partner interest:
Continuing operations (266 ) 11,919 651 20,008
Discontinued operations - 132 1,256 423
(266 ) 12,051 1,907 20,431
Net income (loss)
attributable to common
limited partners and the
general partner:
Continuing operations (13,277 ) 191,385 32,369 (148,889 )
Discontinued operations - 6,538 62,495 21,029
$ (13,277 ) $ 197,923 $ 94,864 $ (127,860 )
Net income (loss)
attributable to common
limited partners per unit:
Basic:
Continuing operations $ (0.26 ) $ 3.89 $ 0.67 $ (4.07 )
Discontinued operations - 0.14 1.29 0.50
$ (0.26 ) $ 4.03 $ 1.96 $ (3.57 )
Diluted:
Continuing operations $ (0.26 ) $ 3.79 $ 0.67 $ (4.07 )
Discontinued operations - 0.14 1.29 0.50
$ (0.26 ) $ 3.93 $ 1.96 $ (3.57 )
Weighted average common
limited partner units
outstanding:
Basic 49,127 45,937 47,554 41,360
Diluted 49,127 47,203 47,591 41,360
Capital expenditure data:
Maintenance capital $ 1,460 $ 1,490 $ 3,561 $ 4,976
expenditures
Expansion capital 5,656 80,224 134,049 218,792
expenditures
Total $ 7,116 $ 81,714 $ 137,610 $ 223,768
See footnotes at the end of this earnings release.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited; in thousands)
September 30, December 31,
ASSETS
2009 2008
Current assets:
Cash and cash equivalents $ 5,261 $ 1,445
Accounts receivable affiliates - 537
Accounts receivable 71,118 100,000
Current portion of derivative asset 4,514 44,961
Prepaid expenses and other 15,304 10,996
Current assets of discontinued operations 13,441
Total current assets 96,197 171,380
Property, plant and equipment, net 1,698,226 1,781,011
Intangible assets, net 174,480 193,647
Investment in joint venture 133,740
Long-term portion of derivative asset 1,980
Other assets, net 34,938 24,993
Long-term assets of discontinued operations 242,165
$ 2,139,561 $ 2,413,196
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable affiliates $ 798 $
Accounts payable 19,706 66,571
Accrued liabilities 31,411 15,809
Current portion of derivative liability 41,019 60,396
Accrued producer liabilities 45,539 66,846
Current liabilities of discontinued operations 10,572
Total current liabilities 138,473 220,194
Long-term derivative liability 9,256 48,159
Long-term debt, less current portion 1,243,050 1,493,427
Other long-term liability 448 574
Commitments and contingencies
Partners' capital:
Class A preferred limited partner's interest 27,853
Class B preferred limited partner's interest 14,955 10,007
Common limited partners' interests 823,195 735,742
Investment in Class B cumulative preferred member
units of Atlas Pipeline Holdings II, LLC (reported (15,000 )
as treasury units)
General partner's interest 16,581 14,521
Accumulated other comprehensive loss (61,142 ) (104,944 )
778,589 683,179
Non-controlling interest (30,255 ) (32,337 )
Total partners' capital 748,334 650,842
$ 2,139,561 $ 2,413,196
See footnotes at the end of this earnings release.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Segment Information
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008(1) 2009(1) 2008(1)
Mid-Continent
Revenue:
Natural gas and liquids $ 194,438 $ 395,621 $ 525,891 $ 1,183,487
Transportation, 3,632 5,741 10,644 15,840
compression and other fees
Gain on asset sale 2,493 - 2,493 -
Other income (loss), net 4,797 153,805 (5,838 ) (247,409 )
Total revenue and other 205,360 555,167 533,190 951,918
loss, net
Costs and expenses:
Natural gas and liquids 145,001 313,763 409,152 936,313
Plant operating 14,762 16,652 42,713 46,418
General and administrative 6,028 (5,380 ) 19,298 3,283
Depreciation and 21,743 19,064 64,111 56,597
amortization
Total costs and expenses 187,534 344,099 535,274 1,042,611
Segment profit (loss) $ 17,826 $ 211,068 $ (2,084 ) $ (90,693 )
Appalachia
Revenue:
Natural gas and liquids $ 2 $ 1,118 $ 587 $ 3,201
Transportation,
compression and other fees 380 11,916 16,877 32,496
-affiliates
Transportation,
compression and other fees 1,087 384 1,930 952
- third parties
Equity income in joint 1,430 - 2,140 -
venture
Gain on asset sale (994 ) - 108,947 -
Other income, net 91 73 230 273
Total revenue and other 1,996 13,491 130,711 36,922
income, net
Costs and expenses:
Natural gas and liquids (11 ) 552 259 1,539
Transportation and 134 2,883 6,256 7,842
compression
General and administrative 1,363 1,361 3,337 4,368
Depreciation and 153 1,677 3,452 4,603
amortization
Total costs and expenses 1,639 6,473 13,304 18,352
Segment profit $ 357 $ 7,018 $ 117,407 $ 18,570
Reconciliation of segment
profit (loss) to net
income (loss):
Segment profit (loss):
Mid-Continent $ 17,826 $ 211,068 $ (2,084 ) $ (90,693 )
Appalachia 357 7,018 117,407 18,570
Total segment income 18,183 218,086 115,323 (72,123 )
(loss)
Corporate general and (1,363 ) (1,362 ) (3,336 ) (4,368 )
administrative expenses
Other loss, net (823 ) - (823 ) -
Interest expense (28,320 ) (22,098 ) (75,820 ) (62,663 )
Income (loss) from (12,323 ) 194,626 35,344 (139,154 )
continuing operations
Income from discontinued - 6,538 62,495 21,029
operations
Net income (loss) $ (12,323 ) $ 201,164 $ 97,839 $ (118,125 )
See footnotes at the end of this earnings release.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
(unaudited; in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008(1) 2009 2008(1)
Reconciliation of net
income (loss) to other
non-GAAP measures(2):
Net income (loss) $ (12,323 ) $ 201,164 $ 97,839 $ (118,125 )
Income attributable to (954 ) (2,591 ) (2,075 ) (7,793 )
non-controlling interests
Depreciation and 21,896 20,741 67,563 61,200
amortization
Interest expense 28,320 22,098 75,820 62,663
NOARK depreciation and
amortization (included - 1,809 2,773 5,409
within income from
discontinued operations)
NOARK asset impairment
(included within income - 7,962
from discontinued
operations)
NOARK interest expense
(income) (included within - (252 ) 29 (1,051 )
income from discontinued
operations)
EBITDA 36,939 242,969 241,949 10,265
Non-cash derivative (6,709 ) (221,984 ) 39,806 36,019
expense
Early termination cash 71,516 5,000 187,641
derivative expense(3)
Non-recurring crude oil to
natural gas liquids price - 10,653
correlation impact(4)
Non-cash portion of gain - (79,733 )
on asset sale(5)
Non-cash linefill (gain) (1,122 ) 913 (3,338 ) (1,443 )
loss(6)
Non-cash compensation 238 (12,673 ) 497 (14,273 )
expense (income)
Adjusted EBITDA 29,346 80,741 204,181 228,862
Interest expense (28,320 ) (22,098 ) (75,820 ) (62,663 )
NOARK interest income
(expense) (included within - 252 (29 ) 1,051
income from discontinued
operations)
Amortization of deferred 1,796 1,042 6,449 3,650
financing costs
Preferred unit dividends (650 ) (900 ) (1,437 )
Maintenance capital (1,459 ) (1,490 ) (3,560 ) (4,976 )
expenditures
NOARK maintenance capital
expenditures (included - (221 ) (454 ) (399 )
within discontinued
operations)
Distributable cash flow $ 1,363 $ 57,576 $ 129,867 $ 164,088
Restated to reflect amounts reclassified to discontinued operations due
(1) to the Partnership's sale of its NOARK gas gathering and interstate
pipeline system.
EBITDA, adjusted EBITDA and distributable cash flow are non-GAAP
(generally accepted accounting principles) financial measures under the
rules of the Securities and Exchange Commission. Management of the
Partnership believes that EBITDA, adjusted EBITDA and distributable cash
flow provide additional information for evaluating the Partnership's
ability to make distributions to its common unitholders and the general
partner, among other things. These measures are widely used by commercial
(2) banks, investment bankers, rating agencies and investors in evaluating
performance relative to peers and pre-set performance standards. EBITDA
and adjusted EBITDA are also financial measurements that, with certain
negotiated adjustments, are utilized within the Partnership's financial
covenants under its credit facility. EBITDA, adjusted EBITDA and
distributable cash flow are not measures of financial performance under
GAAP and, accordingly, should not be considered as a substitute for net
income, operating income, or cash flows from operating activities in
accordance with GAAP.
During the three months ended March 31, 2009, the Partnership made net
payments of $5.0 million related to the early termination of derivative
contracts for second quarter 2009 production periods. These payments were
funded through the Partnership's March 2009 issuance of 5,000 12.0%
convertible preferred units of limited partner interests to Atlas
Pipeline Holdings, L.P. (NYSE: AHD), the owner of the Partnership's
(3) general partner, for cash consideration of $1,000 per preferred unit. The
Partnership had previously entered into an amendment to its credit
facility to revise the definition of Consolidated EBITDA to allow for the
add-back of charges relating to the early termination of certain
derivative contracts for debt covenant calculation purposes when the
early termination of derivative contracts is funded through the issuance
of equity.
Represents the non-recurring impact generated from the decline in the
price correlation of crude oil and natural gas liquids during the second
quarter 2008 and the resulting impact it had on certain crude oil
derivative instruments ("proxy hedges") which the Partnership intended to
mitigate the effect of commodity price movements on the ethane and
propane portion of its natural gas liquid production volume. These
derivative instruments were put in place simultaneously with the
Partnership's acquisition of the Chaney Dell and Midkiff/Benedum systems
(4) in July 2007 and have become less effective as a result of significant
increases in the price of crude oil and less significant increases in the
price of ethane and propane. During 2008, the Partnership closed the
derivative positions it had on approximately 85% of the ethane and
propane portion of its NGL production volume for the periods from the 2nd
quarter 2008 through the 4th quarter of 2009 for an aggregate net cost of
$274.0 million. As such, the Partnership's future cash flow should more
accurately reflect the revenues generated from its ethane and propane
volumes produced in its natural gas processing operations.
Represents the portion of the gain on sale recognized upon the sale of
the Partnership's Appalachia gathering system related to the $25.5
(5) million note receivable from which the Partnership has preferential
rights to the net proceeds and the portion of the gain attributed to the
increase of the Partnership's investment in the Laurel Mountain joint
venture to fair value.
(6) Includes the non-cash impact of commodity price movements on pipeline
linefill inventory.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Operating Highlights
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Mid-Continent - Velma System(1)
Natural Gas
Gross natural gas gathered - mcfd 81,562 64,386 75,919 64,103
Gross natural gas processed - mcfd 78,714 60,902 73,351 60,972
Gross residue natural gas - mcfd 62,219 48,300 57,959 48,158
Natural Gas Liquids
Gross NGL sales - bpd 8,922 6,595 8,158 6,758
Condensate
Gross condensate sales - bpd 389 308 383 286
Mid-Continent - Elk City/Sweetwater
System(1)
Natural Gas
Gross natural gas gathered - mcfd 211,287 279,145 228,630 292,307
Gross natural gas processed - mcfd 200,182 243,409 223,438 236,520
Gross residue natural gas - mcfd 181,011 219,945 203,034 213,668
Natural Gas Liquids
Gross NGL sales - bpd 10,792 11,486 11,361 10,874
Condensate
Gross condensate sales - bpd 260 251 374 299
Mid-Continent - Chaney Dell System(1)
Natural Gas
Gross natural gas gathered - mcfd 268,723 300,467 282,756 278,906
Gross natural gas processed - mcfd 202,516 234,529 216,407 246,365
Gross residue natural gas - mcfd 218,420 250,994 238,167 238,264
Natural Gas Liquids
Gross NGL sales - bpd 13,376 14,128 13,574 13,299
Condensate
Gross condensate sales - bpd 750 759 861 774
Mid-Continent - Midkiff/Benedum System(1)
Natural Gas
Gross natural gas gathered - mcfd 166,423 143,224 160,631 145,300
Gross natural gas processed - mcfd 152,314 136,656 149,516 138,178
Gross residue natural gas - mcfd 104,895 84,372 103,078 92,352
Natural Gas Liquids
Gross NGL sales - bpd 19,926 18,920 21,006 20,029
Condensate
Gross condensate sales - bpd 1,942 1,573 1,426 1,288
Appalachia(1)
Average throughput volume - mcfd(2) 105,989 91,829 104,009 84,007
(1) "Mcf" represents thousand cubic feet; "Mcfd" represents thousand cubic feet
per day; "Bpd" represents barrels per day.
Effective May 31, 2009, this amount represents 100% of the throughput
volume of Laurel Mountain, a joint venture in which the Partnership has a
(2) 49% ownership interest, for the period from May 31, 2009, the date of
inception, through September 30, 2009 and the throughput volume of its
Tennessee gathering system.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES Current Hedge Positions through 2010 (as of November 3, 2009) Note: The natural gas, natural gas liquid and condensate hedge positions shown below represent the hedge contracts in place through December 31, 2010. APL's hedge position in its entirety, including any hedges for periods after December 31, 2010, will be disclosed in the Partnership's Form 10-Q.
INTEREST RATE HEDGES
Swap Contracts
Notional
Term Amount Type
January 2008-
January 2010 $200,000,000 Pay 2.88% --Receive LIBOR
April 2008-
April 2010 $250,000,000 Pay 3.14% --Receive LIBOR
NATURAL GAS HEDGES
Natural Gas Sales - Fixed Price Swaps
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
120,000 - - - -
(MMBTU)(1)
Average
$8.000 - - - -
Fixed Price
Natural Gas Basis Sales
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
1,230,000 1,110,000 1,110,000 - -
(MMBTU)(1)
Average
$(0.558) $(0.575) $(0.575) - -
Fixed Price
Natural Gas Purchases - Fixed Price Swaps
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
2,580,000 2,190,000 2,190,000 - -
(MMBTU)(1)
Average
$8.687 $8.635 $8.635 - -
Fixed Price
Natural Gas Basis Purchases
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
3,690,000 3,300,000 3,300,000 - -
(MMBTU)(1)
Average
$(0.659) $(0.560) $(0.560) - -
Fixed Price
NATURAL GAS LIQUID (NGLs) HEDGES
NGLs Sales - Fixed Price Swaps
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
5,544,000 - - - -
(gallons)
Average
$0.754 - - - -
Fixed Price
Ethane Put Options Purchased
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
630,000 - - - -
(gallons)
Average
$0.340 - - - -
Price(2)
Propane Put Options Purchased
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
15,246,000 18,270,000 - - -
(gallons)
Average
$0.820 $0.845 - - -
Price(2)
Isobutane Put Options Purchased
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
126,000 - - - -
(gallons)
Average
$0.589 - - - -
Price(2)
Normal Butane Put Options Purchased
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
3,654,000 3,654,000 - - -
(gallons)
Average
$0.943 $1.038 - - -
Price(2)
Natural Gasoline Put Options Purchased
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
3,906,000 3,906,000 - - -
(gallons)
Average
$1.341 $1.345 - - -
Price(2)
Crude Oil Put Options Purchased (associated with NGLs, normal butane,
isobutane
and natural gasoline)
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
165,000 172,500 181,500 66,000 66,000
(barrels)
Average
$63.53 $61.20 $63.05 $58.81 $58.81
Price(2)
Crude Oil Call Options Sold (associated with NGLs)
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
527,700 1,314,750 1,314,750 249,000 249,000
(barrels)
Average
$84.80 $82.81 $82.89 $103.85 $103.85
Price(2)
Crude Oil Call Options Purchased (associated with NGLs)(3)
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
- 270,000 270,000 87,000 87,000
(barrels)
Average
- $131.93 $131.93 $132.93 $132.93
Price(2)
CONDENSATE HEDGES
Crude Oil Sales (associated with condensate)
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
6,000 - - - -
(barrels)
Average
$62.70 - - - -
Price(2)
Crude Oil Put Options Purchased (associated with condensate)
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
117,000 121,500 121,500 84,000 84,000
(barrels)
Average
$64.15 $64.30 $65.57 $63.79 $65.09
Price(2)
Crude Oil Call Options Sold (associated with condensate)
4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010
Volumes
76,500 85,500 85,500 31,500 31,500
(barrels)
Average
$84.96 $83.92 $83.96 $99.33 $99.35
Price(2)
(1) MMBTU represents million British Thermal Units
(2) Average price for options is based upon average strike price adjusted by
the premium paid or received.
Calls were purchased for 2010 to offset positions for calls sold. These
(3) offsetting positions were entered into to limit the loss which could be
incurred if crude oil prices continued to rise.
Source: Atlas Pipeline Partners, L.P.
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