Atlas Pipeline Partners, L.P. Announces Long Term Agreement with XTO Energy
PHILADELPHIA--(BUSINESS WIRE)--Atlas Pipeline Partners, L.P. (NYSE: APL) (“APL”, “Atlas Pipeline”) announced that it has entered into a long-term, fee-based agreement with XTO Energy Inc. (“XTO”), a subsidiary of ExxonMobil, to provide natural gas gathering and processing services for up to an incremental 60 million cubic feet per day (mmcfd) from the Woodford Shale region of Oklahoma to its Velma processing facility in Velma, OK. Under the agreement, APL will provide gathering and processing services for XTO production in the liquids-rich area within the Woodford Shale. The agreement also supports APL’s previously announced expansion of its Velma system.
“We are pleased to enter into this long-term agreement with XTO with respect to production in the area around our Velma facility. Activities in the area have increased over the past year and we are adding capacity to address the needs of our producer customers. We are excited to work with them on their development plans and are pleased to be adding de-risked cash flows to the business through this arrangement,” stated Eugene N. Dubay, Chief Executive Officer of APL.
”This agreement will help provide XTO Energy the necessary infrastructure to operate effectively in the Woodford Shale and access markets beyond the region,” said Terry Schultz, Senior Vice President of Marketing, XTO Energy.
APL previously announced a 60 mmcfd expansion of the Velma facility on May 12, 2011. The cryogenic facility is expected to be brought in-service in the middle of 2012. This agreement with XTO Energy will utilize this new facility, which will bring the name plate processing capacity of the Velma facility to 160 mmcfd after the expansion is completed.
Atlas Pipeline Partners, L.P. (NYSE: APL) is active in the gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, southern Kansas, and northern and western Texas, APL owns and operates five active gas processing plants as well as approximately 8,600 miles of active intrastate gas gathering pipeline. APL also has a 20% interest in the West Texas LPG Partnership, which is operated by Chevron Corporation. For more information, visit the Partnership's website at www.atlaspipeline.com or contact IR@atlaspipeline.com.
Atlas Energy, L.P. (NYSE: ATLS) is a master limited partnership which owns and operates the general partner of Atlas Pipeline Partners, L.P. (NYSE: APL), through which it owns a 2% general partner interest, all the incentive distribution rights and approximately 5.75 million common limited partner units of APL. Additionally, ATLS owns an interest in over 8,500 producing natural gas and oil wells, representing over 185 Bcfe of net proved developed reserves. For more information, please visit the Partnership’s website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.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. Atlas Pipeline does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in commodity process and 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.