Thursday, December 8, 2011

Atlas Pipeline Partners, L.P. announces long-term agreement with XTO Energy

PHILADELPHIA, Pa. - Atlas Pipeline Partners, L.P. announced on Dec. 1 that it has entered into a long-term, fee-based agreement with XTO Energy Inc., 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, Okla.

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.

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