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.

Atlas Pipeline, Williams Cos. close joint venture

TULSA, Okla. - Williams Cos. says it has closed on a joint-venture agreement with Atlas Pipeline Partners LP that will collect natural gas in the southwestern Pennsylvania portion of the Marcellus Shale rock formation.
The new company, named Laurel Mountain Midstream LLC, owns 1,800 miles of interstate natural gas gathering lines in the region, servicing about 6,900 wells.
Williams says it contributed $100 million and issued a $25.5 million note payable to Laurel Mountain in exchange for a 51 percent ownership interest in the joint venture.
Moon Township, Pa.-based Atlas Pipeline Partners will own 49 percent.
Williams will run the new company on a day-to-day basis.

Williams in Marcellus Shale joint venture with Atlas Pipeline Partners

TULSA, Okla. - Williams announced on April 1 that it will enter the Marcellus Shale through a newly formed midstream joint venture with Atlas Pipeline Partners L.P.
The new venture will own Atlas Pipeline Partners' existing Appalachian Basin gathering system, which includes approximately 1,800 miles of intrastate natural gas gathering lines servicing 6,900 wells. The system has an average throughput currently in excess of 100 million cubic feet per day (MMcfd). The Marcellus production growth of Atlas Energy Resources, LLC, an Atlas Pipeline Partners affiliate, has driven a 30-percent increase in the gathering system's throughput in the past year.
Williams will contribute, subject to certain post-closing adjustments, $102 million and issue a $25.5 million note payable to a newly formed joint venture, Laurel Mountain Midstream LLC, in exchange for a 51-percent ownership interest in the joint venture. In addition to its ownership interest, Williams will operate the gathering system.

Pipeline limited partnerships rebound sharply following selloff

Shares of pipeline operators plunged in the waning months of 2008, but have rebounded sharply in the first few days of 2009.
Atlas Pipeline Partners, for example, rebounded from $5.20 a share at yearend 2008 to $10.25 at end of day Jan. 6, up almost 100 percent, and was paying a $3.84 annual dividend. Eagle Rock Energy Partners, paying $1.64, jumped from $4.50 a share to $8.02. Enbridge Energy Partners, paying $3.96, jumped from $24.03 to $30.20. Plains All American, paying $3.57, ran from $32.00 to $38.98. Williams Partners LP, paying $2.54, jumped from $$11.50 to $16.34. And Buckeye Partners, paying $3.50, ran from $30.25 to $36.80.
In 2008, companies such as Enterprise Products Partners and El Paso Corp. have struggled with falling share prices, tight credit markets and a shifting mix of shareholders that has eroded their stock prices.
Enterprise fell almost 35 percent last year, while Kinder Morgan Energy Partners dropped 15 percent and El Paso plunged 55 percent. The declining shares led to El Paso’s removal from the Standard & Poor’s 100 Index.