Atlas Pipeline Partners 8-K Atlas Pipeline Partners, L.P. Reports Record Second Quarter 2007 Financial Results

Exhibit 99.1

ATLAS PIPELINE PARTNERS, L.P.
REPORTS RECORD SECOND QUARTER 2007 FINANCIAL RESULTS

Philadelphia, PA, August 3, 2007— Atlas Pipeline Partners, L.P. (NYSE: APL) (the “Partnership”)today reported record adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”), a non-GAAP (generally accepted accounting principles) measure, of $24.2 million for the second quarter 2007 compared with $22.8 million for the prior year second quarter. The quarter-over-quarter results were favorably impacted by higher system-wide volumes of approximately 759.4 million cubic feet per day (“MMcfd”) compared with 644.1 MMcfd for the prior year comparable quarter, an increase of approximately 18%. Increased throughput volume on the NOARK interstate pipeline system (“NOARK”), the addition of the Sweetwater processing facility and an increase in Appalachia gathered natural gas contributed to the aggregate growth in system volumes. On a GAAP basis, the Partnership recognized a net loss of $20.8 million for the second quarter 2007, largely related to $28.5 million of non-cash derivative expense. The non-cash expense was due to the impact of commodity price movement on hedge instruments entered into and in conjunction with the recent acquisition of Anadarko Petroleum Corporation’s (NYSE: APC) (“Anadarko”) interest in certain gathering and processing assets.

On July 27, 2007, the Partnership acquired control of Anadarko Petroleum Corporation’s (NYSE: APC) (“Anadarko”) 100% interest in the Chaney Dell natural gas gathering system and processing plants located in Oklahoma and its approximate 73% interest in the Midkiff/Benedum natural gas gathering system and processing plants located in Texas (the “Assets”). The Chaney Dell System includes 3,470 miles of gathering pipeline and three processing plants, and the Midkiff/Benedum System includes 2,500 miles of gathering pipeline and two processing plants. The transaction was effected by the formation of two joint venture companies which own the respective systems, to which the Partnership contributed $1.85 billion and Anadarko contributed the Assets. In connection with this acquisition, the Partnership reached an agreement with Pioneer Natural Resources Company (NYSE: PXD — “Pioneer”), which provides approximately half of the natural gas processed by the Midkiff/Benedum system, to extend Pioneer’s contract on the system for an additional ten years through 2022. In conjunction with this extension, the Partnership granted to Pioneer, which currently holds an approximate 27% interest in the Midkiff/Benedum system, an option to buy up to an additional 14.6% interest in the Midkiff/Benedum system one year after the closing of the Partnership’s acquisition of Anadarko’s interest, and up to an additional 7.5% interest two years after the closing of the Partnership’s acquisition of Anadarko’s interest. If the options are fully exercised, Pioneer would increase its interest in the system to approximately 49%. Pioneer would pay approximately $230 million for the additional 22% interest if fully exercised. The Partnership will manage and control the Midkiff/Benedum system regardless of whether Pioneer exercises the purchase options.

The Partnership funded the purchase price of the acquisition in part from a private placement of 25.6 million common limited partner units, generating gross proceeds of $1.125 billion. Atlas Pipeline Holdings, L.P. (NYSE: AHD) (“Atlas Holdings”), the parent of the Partnership’s general partner, purchased 3.8 million of the 25.6 million common limited partner units issued by the Partnership. The Partnership funded the remaining purchase price with an $830.0 million senior secured term loan which matures in July 2014 and a partial advance against a new $300.0 million senior secured revolving credit facility which matures in July 2013. Atlas Holdings, which holds all of the incentive distribution rights in the Partnership, has agreed to allocate a portion of its future incentive distribution rights to the Partnership in connection with the Anadarko acquisition. Atlas Holdings has agreed to allocate up to $5.0 million of incentive distribution rights per quarter to the Partnership through the quarter ended June 30, 2009, and up to $3.75 million per quarter thereafter.

The Partnership declared a record quarterly cash distribution for the second quarter 2007 of $0.87 per common limited partner unit on June 26, 2007. The second quarter 2007 distribution will be paid on August 14, 2007 to all unitholders of record as of July 6, 2007. Distributions declared per common limited partner unit for the twelve months ended June 30, 2007 were $3.44, an increase of $0.11 compared to the twelve months ended June 30, 2006. The Partnership established distribution guidance at a range of $3.80 to $4.00 per common limited partner unit for 2008, while also increasing the targeted distribution coverage ratio to 1.2x.

“Recent accomplishments have been transformative for our Partnership,” stated Edward E. Cohen, Chairman and Chief Executive Officer of the Partnership. “The acquisition of Anadarko’s interest in the Chaney Dell and Midkiff/Benedum gathering and processing systems has more than doubled our daily natural gas processing capacity to approximately

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750 Mmcfd. In addition, our existing assets in the Mid-Continent region generated record gathered volumes in the second quarter 2007 of almost 700 Mmcfd. Appalachian segment results were also strong this quarter, providing record throughput volume of 66.2 Mmcfd from the growing production of Atlas Energy Resources, LLC (NYSE: ATN). These volumes yielded our highest quarterly operating revenues to date of $124.0 million.”

Segment Analysis

Mid-Continent

Excluding the effect of a $28.5 million non-cash derivative expense, the Mid-Continent segment recognized total revenue of $115.4 million for the second quarter 2007, an increase of $14.4 million from the prior year comparable quarter. This increase was principally attributable to higher system volumes and favorable movements in overall commodity prices. For the Elk City/Sweetwater system, average gross natural gas processed volume for the second quarter 2007 averaged 234.9 MMcfd, a 74% increase from the second quarter 2006. The Partnership connected 64 new wells to the Elk City/Sweetwater system during the second quarter 2007. For the NOARK system, average Ozark Gas Transmission throughput volume was 321.7 MMcfd during the second quarter 2007, a 32% increase from the second quarter 2006. The Velma system’s average processed natural gas volume of 61.2 MMcfd for the second quarter 2007 represented a 2.2% increase over the prior year comparable quarter. The Partnership connected 16 new wells to its Velma system during the second quarter 2007.

Appalachia

Total revenue for the Appalachia system was $8.6 million for the second quarter 2007 compared with $8.1 million for the second quarter 2006, an increase of $0.5 million due principally to higher throughput volume and higher realized transportation rates. Throughput volume increased to 66.2 MMcfd for the second quarter 2007 compared with 63.1 MMcfd for the second quarter 2006 resulting from the connection of new wells to the Appalachia gathering system. The Appalachia system’s average transportation rate per thousand cubic feet (“mcf”) was $1.41 for the second quarter 2007, a 5% increase from $1.34 per mcf for the prior year second quarter. During the second quarter 2007, 146 new wells were connected to the Appalachia gathering system.

Corporate and Other

General and administrative expense, including amounts reimbursed to affiliates, increased $2.3 million to $7.4 million for the second quarter 2007 from $5.1 million for the second quarter 2006. This increase was primarily related to an increase in non-cash compensation expense arising from vesting of phantom and common unit awards of $1.3 million and higher costs associated with managing our operations. Depreciation and amortization increased $1.4 million to $6.7 million for the second quarter 2007 due primarily to the depreciation associated with the Partnership’s expansion capital expenditures incurred subsequent to the second quarter 2006, including the Sweetwater processing facility.

Interest expense increased to $7.3 million for the second quarter 2007, an increase of $1.1 million from the prior year second quarter. This increase was primarily related to interest associated with the Partnership’s additional borrowings under its credit facility to finance its expansion capital expenditures. At June 30, 2007, the Partnership had $368.5 million of total debt, including $293.5 million of senior unsecured notes that mature in 2015 and $74.0 million of outstanding borrowings under its $225.0 million credit facility.

Interested parties are invited to access the live webcast of an investor call with management regarding the Partnership’s second quarter 2007 results on Friday, August 3, 2007 at 2:00 pm ET by going to the Investor Relations section of the Partnership’s website atwww.atlaspipelinepartners.com. An audio replay of the conference call will also be available beginning at 4:00 pm ET on Friday, August 3, 2007. To access the replay, dial 1-888-286-8010 and enter conference code 15757667.

Atlas Pipeline Partners, L.P.is active in the transmission, gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, Arkansas, northern and western Texas and the Texas panhandle, the Partnership owns and operates eight gas processing plants and a treating facility, as well as approximately 7,900 miles of active intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. In Appalachia, it owns and operates approximately 1,600 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio. For more information, visit our website atwww.atlaspipelinepartners.com or contactbbegley@atlaspipelinepartners.com.

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Atlas Pipeline Holdings, L.P.is a limited partnership which owns and operates the general partner of Atlas Pipeline Partners, L.P., through which it owns a 2% general partner interest, all the incentive distribution rights and approximately 5.5 million common units of Atlas Pipeline Partners.

Atlas America, Inc.owns an approximate 64% limited partner interest in Atlas Pipeline Holdings, L.P. and an approximate 49% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC (NYSE: ATN). For more information, please visit our website atwww.atlasamerica.com, or contact Investor Relations atbbegley@atlasamerica.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. Factors that could cause actual results to differ materially from expectations include financial performance, inability of the Partnership to successfully integrate the operations at the acquired systems, regulatory changes, changes in 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 onForm 10-Q, reports onForm 8-K and annual reports onForm 10-K.

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ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Financial Summary
(in thousands, except per unit amounts)

	Three Months Ended						Six Months Ended
INCOME STATEMENT	June 30,						June 30,
	2007			2006			2007			2006
Revenue:
Natural gas and liquids	$	104,792		$	95,609		$	206,968		$	196,086
Transportation and compression — affiliates		8,458			7,834			16,178			15,708
Transportation and compression — third parties		10,588			5,379			20,426			14,156
Other income (loss)		(28,423	)		679			(30,620	)		1,361
Total revenue and other income (loss)		95,415			109,501			212,952			227,311
Costs and expenses:
Natural gas and liquids		87,102			77,006			174,912			162,898
Plant operating		4,515			3,926			9,045			7,153
Transportation and compression		3,210			2,849			6,322			4,925
General and administrative		6,608			4,181			12,311			8,396
Compensation reimbursement — affiliates		798			885			1,428			1,605
Depreciation and amortization		6,671			5,258			13,205			10,533
Interest		7,327			6,154			14,086			12,491
Minority interest in NOARK		—			(451	)		—			118
Total costs and expenses		116,231			99,808			231,309			208,119
Net income (loss)		(20,816	)		9,693			(18,357	)		19,192
Preferred unit dividend effect		(3,756	)		—			(3,756	)		—
Preferred unit imputed dividend cost		(735	)		(540	)		(1,234	)		(635	)
Net income (loss) attributable to common limited partners and the general partner	$	(25,307	)	$	9,153		$	(23,347	)	$	18,557
Allocation of net income (loss) attributable to common limited partners and the general partner:
Common limited partners’ interest	$	(28,728	)	$	5,299		$	(30,612	)	$	11,105
General partner’s interest		3,421			3,854			7,265			7,452
Net income (loss) attributable to common limited partners and the general partner	$	(25,307	)	$	9,153		$	(23,347	)	$	18,557
Net income (loss) attributable to common limited partners per unit:
Basic	$	(2.20	)	$	0.41		$	(2.34	)	$	0.88
Diluted	$	(2.20	)	$	0.41		$	(2.34	)	$	0.87
Weighted average common limited partner units outstanding:
Basic		13,080			12,824			13,080			12,687
Diluted		13,080			12,979			13,080			12,833
Capital expenditure data:
Maintenance capital expenditures	$	700		$	917		$	1,472		$	2,078
Expansion capital expenditures		24,318			21,333			41,923			33,734
Total	$	25,018		$	22,250		$	43,395		$	35,812

	June 30,		December 31,
Balance Sheet Data (at period end):	2007		2006
Cash and cash equivalents	$	2,435	$	1,795
Total assets		799,166		786,884
Total debt		368,503		324,083
Total partners’ capital		302,001		379,134

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ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Segment Information
(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Mid-Continent
Revenue:
Natural gas and liquids	$	104,792		$	95,609		$	206,968		$	196,086
Transportation and compression		10,571			5,360			20,390			14,110
Other income (loss)		(28,506	)		414			(30,785	)		955
Total revenue and other income (loss)		86,857			101,383			196,573			211,151
Costs and expenses:
Natural gas and liquids		87,102			77,006			174,912			162,898
Plant operating		4,515			3,926			9,045			7,153
Transportation and compression		1,780			1,532			3,500			2,640
General and administrative		4,806			2,995			8,700			6,163
Minority interest in NOARK		—			(451	)		—			118
Depreciation and amortization		5,555			4,375			11,015			8,834
Total costs and expenses		103,758			89,383			207,172			187,806
Segment profit (loss)	$	(16,901	)	$	12,000		$	(10,599	)	$	23,345
Appalachia
Revenue:
Transportation and compression — affiliates	$	8,459		$	7,834		$	16,179		$	15,708
Transportation and compression — third parties		16			19			35			46
Other income (loss)		83			265			165			406
Total revenue and other income		8,558			8,118			16,379			16,160
Costs and expenses:
Transportation and compression		1,430			1,317			2,822			2,285
General and administrative		1,300			1,035			2,520			1,919
Depreciation and amortization		1,116			883			2,190			1,699
Total costs and expenses		3,846			3,235			7,532			5,903
Segment profit	$	4,712		$	4,883		$	8,847		$	10,257
Reconciliation of segment profit (loss) to net income (loss):
Segment profit (loss):
Mid-Continent	$	(16,901	)	$	12,000		$	(10,599	)	$	23,345
Appalachia		4,712			4,883			8,847			10,257
Total segment profit (loss)		(12,189	)		16,883			(1,752	)		33,602
Corporate general and administrative expenses		(1,300	)		(1,036	)		(2,519	)		(1,919	)
Interest expense		(7,327	)		(6,154	)		(14,086	)		(12,491	)
Net income (loss)	$	(20,816	)	$	9,693		$	(18,357	)	$	19,192

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ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARES
(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Reconciliation of net income (loss) to adjusted net income (loss):
Net income (loss)	$	(20,816	)	$	9,693		$	(18,357	)	$	19,192
Effect of prior period items(1)		—			1,227			—			1,090
Adjusted net income (loss)	$	(20,816	)	$	10,920		$	(18,357	)	$	20,282
Reconciliation of net income (loss) to non-GAAP measures(2):
Net income (loss)	$	(20,816	)	$	9,693		$	(18,357	)	$	19,192
Depreciation and amortization		6,671			5,258			13,205			10,533
Minority interest share of depreciation and amortization and interest expense for NOARK		—			(327	)		—			(1,200	)
Interest expense		7,327			6,154			14,086			12,491
EBITDA		(6,818	)		20,778			8,934			41,016
Non-cash derivative expense (income)		28,549			(397	)		30,826			(937	)
Non-cash compensation expense		2,481			1,183			4,276			2,502
Effect of prior period items(1)		—			1,227			—			1,090
Adjusted EBITDA		24,212			22,791			44,036			43,671
Interest expense		(7,327	)		(6,154	)		(14,086	)		(12,491	)
Minority interest share of interest expense for NOARK		—			230			—			938
Amortization of deferred financing costs (included within interest expense)		534			612			1,068			1,205
Maintenance capital expenditures		(700	)		(917	)		(1,472	)		(2,078	)
Distributable cash flow	$	16,719		$	16,562		$	29,546		$	31,245

(1)

During June 2006, the Partnership identified measurement reporting inaccuracies on three newly installed pipeline meters. To adjust for such inaccuracies, which related to natural gas volume gathered during the third and fourth quarters of 2005 and first quarter of 2006, the Partnership recorded an adjustment of $1.2 million during the second quarter of 2006 to increase natural gas and liquids cost of goods sold. If the $1.2 million adjustment had been recorded when the inaccuracies arose, reported net income would have been reduced by approximately 2.7%, 8.3%, and 1.4% for the third quarter of 2005, fourth quarter of 2005, and first quarter of 2006, respectively. Management of the Partnership believes that the impact of these adjustments is immaterial to its current and prior financial statements.

(2)

EBITDA and distributable cash flow are non-GAAP (generally accepted accounting principles) financial measures under the rules of the Securities and Exchange Commission. Management of the Partnership believes that EBITDA and distributable cash flow provide additional information for evaluating the Partnership’s ability to make distributions to its common unitholders and the general partner, among other things. These measures are widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards. EBITDA is also a financial measurement that, with certain negotiated adjustments, is utilized within the Partnership’s financial covenants under its credit facility. EBITDA and distributable cash flow are not measures of financial performance under GAAP and, accordingly, should not be considered as a substitute for net income, operating income, or cash flows from operating activities in accordance with GAAP.

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ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARES
Operating Highlights

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Mid-Continent — Velma System
Natural Gas
Gross natural gas gathered — mcfd		62,788		62,079		61,907		61,401
Gross natural gas processed — mcfd		61,150		59,823		59,836		59,179
Gross residue natural gas — mcfd		47,229		46,647		46,463		46,203
Natural Gas Liquids
Gross NGL sales — bpd		6,697		6,674		6,473		6,505
Condensate
Gross condensate sales — bpd		212		237		206		212
Mid-Continent — Elk City/Sweetwater System
Natural Gas
Gross natural gas gathered — mcfd		308,703		275,865		298,355		264,093
Gross natural gas processed — mcfd		234,896		135,394		221,151		133,187
Gross residue natural gas — mcfd		215,501		122,644		203,288		120,840
Natural Gas Liquids
Gross NGL sales — bpd		9,742		6,237		9,132		5,999
Condensate
Gross condensate sales — bpd		220		147		271		159
Mid-Continent — NOARK system
Ozark Gas Transmission throughput — mcfd		321,717		243,014		304,400		241,093
Appalachia
Throughput — mcfd		66,152		63,113		64,352		60,235
Average transportation rate per mcf	$	1.41	$	1.34	$	1.39	$	1.44

Mcf — thousand cubic feet

Mcfd — thousand cubic feet per day

Bpd — barrels per day

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ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Current Mid-Continent Segment Hedge Positions
(as of August 2, 2007)

Natural Gas Liquids Sales

Production Period				Average
Ended December 31,		Volumes		Fixed Price
		(gallons)		(per gallon)
	2007		57,204,000	$	0.893
	2008		33,012,000		0.697
	2009		8,568,000		0.746

Crude Oil Sales Options (associated with NGL volume)

				Associated		Average
Production Period		Crude		NGL		Crude
Ended December 31,		Volume		Volume		Strike Price		Option Type
		(barrels)		(gallons)		(per barrel)
	2007		1,275,000		78,681,000	$	60.00	Puts purchased
	2007		1,275,000		78,681,000		75.18	Calls sold
	2008		4,269,000		260,692,000		60.00	Puts purchased
	2008		4,269,000		260,692,000		79.20	Calls sold
	2009		4,752,000		290,364,000		60.00	Puts purchased
	2009		4,752,000		290,364,000		78.68	Calls sold
	2010		2,413,500		149,009,000		60.00	Puts purchased
	2010		2,413,500		149,009,000		77.28	Calls sold

Natural Gas Sales

Production Period				Average
Ended December 31,		Volumes		Fixed Price
		(mmbtu)(1)		(per mmbtu)(1)
	2007		540,000	$	7.255
	2008		240,000		7.270
	2009		480,000		8.000

Natural Gas Basis Sales

Production Period				Average
Ended December 31,		Volumes		Fixed Price
		(mmbtu)(1)		(per mmbtu)(1)
	2007		2,820,000	$	(0.771	)
	2008		4,440,000		(0.671	)
	2009		4,920,000		(0.558	)
	2010		2,220,000		(0.575	)

Natural Gas Purchases

Production Period				Average
Ended December 31,		Volumes		Fixed Price
		(mmbtu)(1)		(per mmbtu)(1)
	2007		5,460,000	$	8.593	(2)
	2008		11,016,000		8.951	(3)
	2009		10,320,000		8.687
	2010		4,380,000		8.635

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ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
Current Mid-Continent Segment Hedge Positions
(as of August 2, 2007)

Natural Gas Basis Purchases

Production Period				Average
Ended December 31,		Volumes		Fixed Price
		(mmbtu)(1)		(per mmbtu)(1)
	2007		7,740,000	$	(1.036	)
	2008		15,216,000		(1.125	)
	2009		14,760,000		(0.659	)
	2010		6,600,000		(0.560	)

Crude Oil Sales

Production Period				Average
Ended December 31,		Volumes		Fixed Price
		(barrels)		(per barrel)
	2007		37,700	$	56.249
	2008		65,400		59.424
	2009		33,000		62.700

Crude Oil Sales Options

Production Period				Average
Ended December 31,		Volumes		Strike Price		Option Type
		(barrels)		(per barrel)
	2007		324,600		60.000	Puts purchased
	2007		324,600		75.256	Calls sold
	2008		691,800		60.000	Puts purchased
	2008		691,800		78.004	Calls sold
	2009		738,000		60.000	Puts purchased
	2009		738,000		80.622	Calls sold
	2010		402,000		60.000	Puts purchased
	2010		402,000		79.341	Calls sold
	2011		30,000		60.000	Puts purchased
	2011		30,000		74.500	Calls sold
	2012		30,000		60.000	Puts purchased
	2012		30,000		73.900	Calls sold

(1)	Mmbtu represents million British Thermal Units.
(2)	Includes the Partnership’s premium received from its sale of an option for it to sell 2,400,000 mmbtu of natural gas at an average price of $15.00 per mmbtu for the year ended December 31, 2007.
(3)	Includes the Partnership’s premium received from its sale of an option for it to sell 936,000 mmbtu of natural gas for the year ended December 31, 2008 at $15.50 per mmbtu.

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