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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Jim P. who wrote (174876)	1/14/2013 5:02:38 PM
From: Jim P.	2 Recommendations Respond to of 206084

finance.yahoo.com ATLS update on the APL half of its business. PHILADELPHIA, Jan. 14, 2013 /PRNewswire/ -- Atlas Pipeline Partners, L.P. ( APL) ("APL", "Atlas Pipeline", or the "Partnership") announced today that the Partnership is updating the timing of its WestTX expansion, the 200 Million cubic feet per day ("mmcfd") Driver cryogenic processing facility. This facility was originally expected to come online in two phases with phase one online in 1Q'13 and phase two online in 1Q'14, with each phase consisting of 100 mmcfd of processing capacity. The Driver facility is now expected to have the entire 200 mmcfd come online by the end of the first quarter or early second quarter of 2013. Based on the continued volume growth from the Partnership's producer customers in the Permian Basin, management expects to utilize approximately 60% of the Driver facility's capacity at start-up and anticipates steady growth in volumes throughout the year. Management is also pleased to announce that the Partnership has entered into a new contract with SandRidge Energy, Inc. ("SandRidge") ( SD). SandRidge is currently the Partnership's largest producer customer in the Mississippian Lime. The new agreement, a five year contract commencing January 1, 2013, is extendable at the option of SandRidge to a nine year term if a minimum level of throughput volume is met. It is a percent-of-proceeds (POP) contract, complimented by additional fixed-fee gathering cash flow associated with underlying throughput volumes from SandRidge. At the termination of the existing contract, all volumes under that agreement will be transferred to this new agreement, materially reducing the Partnership's keep-whole exposure. In addition to the extension in tenor from the previous contract, SandRidge has agreed to dedicate three additional areas in Southern Kansas, including Harper, Sumner, and Cowley counties. Including the originally dedicated areas within SandRidge's Oklahoma Mississippian position, the new agreement now includes the majority of SandRidge's developed acreage within the burgeoning Mississippi Lime formation. "We are pleased to be announcing a new long term agreement with a key producer in the Mississippi Lime as well as the acceleration of the start of the full Driver plant in West Texas within the next couple of months. These positive developments will secure future growth through our growing relationships with our producer customers. Accordingly, we have added a significant amount of further protection through our risk management program that will preserve margin over the next several years. We will continue to pursue additional value creation opportunities for the long term for our customers, stakeholders, and employees", stated Eugene Dubay, Chief Executive Officer of the Partnership. As a result of this new POP agreement with SandRidge, the Partnership has added significant natural gas protection to its risk management portfolio, as well as continuing to elongate the program and adding further margin protection through hedging activities. Atlas Pipeline now has 76% of expected 2013 margin protected (ex-ethane) and a full table of risk management positions is included at the end of this release. The Partnership is reaffirming its guidance for 2013 for Adjusted EBITDA of $310 - $360 Million based on current commodity prices and management's volume expectations. These forecasted amounts are based on various assumptions, including, among others, the Partnership's expected cost and timing for completion of its announced capital expenditure program, timing of incremental volumes on its gathering and processing systems, known contract structures, scheduled maintenance of facilities including those of third-parties that impact the Partnership's operations, estimated interest rates, and budgeted operating and general administrative costs. Management does not forecast certain items, including GAAP revenues, depreciation, amortization, and non-cash changes in derivatives, and therefore is unable to provide forecasted Net Income, a comparable GAAP measure, for the periods presented. The reconciling items between these non-GAAP measures and Net Income are expected to be similar to those for the most recently completed quarterly period and are not expected to be significant to the Partnership's cash flows.