Atlas Pipeline Partners, L.P. Announces Significant Expansion of Risk Management Program
PHILADELPHIA--(BUSINESS WIRE)--Atlas Pipeline Partners, L.P. (NYSE: APL) (“APL”, “Atlas Pipeline”, or the “Partnership”) announced today the successful expansion of the Partnership’s risk management program. The Partnership now has hedge positions in place for the 2012 calendar year for 76% of anticipated margins of natural gas, natural gas liquids (exclusive of ethane), and condensate. For natural gas liquids (ex-ethane) only, coverage increases to 83% and for condensate only the coverage is 82%. The average per gallon price for the natural gas liquids which are hedged under the coverage described above is $1.47 per gallon (ex-ethane) and average condensate protection for the period mentioned above is at an average hedged price of $95.56 per barrel.
The Partnership has also extended its risk management program further into the 2013 calendar year, and now has margin coverage in 2013 for 39% of anticipated margins for natural gas and natural gas liquids (ex-ethane). Protection for the natural gas liquids (ex-ethane) portion of margin for the 2013 period include coverage for 48% of anticipated margin at this time. The average price per gallon on the hedged natural gas liquids (ex-ethane) coverage described for the 2013 period is $1.62 per gallon. The full list of risk management positions will be detailed in conjunction with the third quarter 2011 results in early November.
“We are pleased to be able to provide an update to the Partnership’s risk management program, as we have added significant protection to our margin for 2012 and 2013. All of the protection in 2013 and 65% of the protection in 2012 are puts to establish pricing floors which protect us from the downside while giving us the option to participate in a rising price environment. As many have noticed, there has been increased commodity volatility across the energy space, particularly in crude, but natural gas liquids pricing remains very strong and we have been fortunate to put further protection in place in greater levels at prices we feel are beneficial to the Partnership and our unit holders,” said Eugene N. Dubay, Chief Executive Officer of the Partnership.
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.