Exhibit 99.1
Atlas Pipeline Partners, L.P. Reports Update to its Hedge Positions
PHILADELPHIA–(MARKETWIRE) – September 11, 2006 – Atlas Pipeline Partners L.P. (NYSE: APL) (the “Partnership”)reported today an update to its hedge positions for natural gas, natural gas liquids (“NGLs”) and condensate that it owns and generates in its Mid-Continent processing operations. These new hedging contracts cover future production for the remainder of 2006 through the end of 2009. A summary of the Partnership’s current hedge position is included in the attached schedule.
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 Texas and the Texas panhandle, the Partnership owns and operates approximately 2,565 miles of intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. The Partnership also operates two gas processing plants and a treating facility in Velma, Elk City and Prentiss, Oklahoma where natural gas liquids and impurities are removed. In Appalachia, it owns and operates approximately 1,500 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.
The Partnership’s actual results, performance or achievements could differ materially from those expressed or implied in this release as a result of certain factors, including the price of gas in the Mid-Continent area, actual versus projected volumetric production from wells in the area to be served by the new plant, the NGL content of the natural gas processed and other factors disclosed under “Risk Factors” in our most recent 10-K.
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Atlas Pipeline Partners, L.P.
Current Mid-Continent Hedge Position as of September 11, 2006
Natural Gas Liquids Sales
| | | | |
Production Period Ended December 31, | | Volume | | Average
Fixed Price |
| | | (gallons) | | (per gallon) |
2006 | | 31,122,000 | | 0.76 |
2007 | | 84,924,000 | | 0.85 |
2008 | | 33,012,000 | | 0.70 |
2009 | | 8,568,000 | | 0.75 |
Crude Oil Sales Options (associated with NGL volume)
| | | | | | | | |
Production Period Ended December 31, | | Crude
Volume | | Associated
NGL
Volume | | Average
Crude
Fixed Price | | |
| | | (barrels) | | (gallons) | | (per barrel) | | |
2006 | | — | | — | | 0.00 | | Puts purchased |
2006 | | — | | — | | 0.00 | | Calls sold |
2007 | | — | | — | | 0.00 | | Puts purchased |
2007 | | — | | — | | 0.00 | | Calls sold |
2008 | | 720,000 | | 40,219,000 | | 60.00 | | Puts purchased |
2008 | | 720,000 | | 40,219,000 | | 84.00 | | Calls sold |
2009 | | 720,000 | | 40,219,000 | | 60.00 | | Puts purchased |
2009 | | 720,000 | | 40,219,000 | | 81.00 | | Calls sold |
Natural Gas Sales
| | | | |
Production Period Ended December 31, | | Volume | | Average Fixed Price |
| | | (MMBTU) | | (per MMBTU) |
2006 | | 600,000 | | 7.02 |
2007 | | 1,080,000 | | 7.26 |
2008 | | 240,000 | | 7.27 |
Natural Gas Basis Sales
| | | | | |
Production Period Ended December 31, | | Volume | | Average Fixed Price | |
| | | (MMBTU) | | (per MMBTU) | |
2006 | | 600,000 | | (0.53 | ) |
2007 | | 1,080,000 | | (0.54 | ) |
2008 | | 240,000 | | (0.56 | ) |
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Natural Gas Purchases
| | | | | |
Production Period Ended December 31, | | Volume | | Average Fixed Price | |
| | | (MMBTU) | | (per MMBTU) | |
2006 | | 2,160,000 | | 7.80 | |
2007 | | 6,060,000 | | 8.93 | * |
2008 | | 3,336,000 | | 8.87 | ** |
2009 | | 2,400,000 | | 8.45 | |
Natural Gas Basis Purchases
| | | | | |
Production Period Ended December 31, | | Volume | | Average
Fixed Price | |
| | | (MMBTU) | | (per MMBTU) | |
2006 | | 2,160,000 | | (0.78 | ) |
2007 | | 6,060,000 | | (0.89 | ) |
2008 | | 3,336,000 | | (1.04 | ) |
2009 | | 2,400,000 | | (0.60 | ) |
Crude Oil Sales
| | | | |
Production Period Ended December 31, | | Volume | | Average
Fixed Price |
| | | (barrels) | | (per barrel) |
2006 | | 42,700 | | 52.56 |
2007 | | 77,900 | | 56.18 |
2008 | | 65,400 | | 59.42 |
2009 | | 33,000 | | 62.70 |
Crude Oil Sales Options
| | | | | | |
Production Period Ended December 31, | | Volume | | Average
Strike Price | | |
| | | (barrels) | | (per barrel) | | |
2006 | | 6,600 | | 60.00 | | Puts purchased |
2006 | | 6,600 | | 73.38 | | Calls sold |
2007 | | 13,200 | | 60.00 | | Puts purchased |
2007 | | 13,200 | | 73.38 | | Calls sold |
2008 | | 17,400 | | 60.00 | | Puts purchased |
2008 | | 17,400 | | 72.81 | | Calls sold |
2009 | | 30,000 | | 60.00 | | Puts purchased |
2009 | | 30,000 | | 71.25 | | Calls sold |
| * | Includes the Partnership’s premium received from its sale of an option for it to sell 4,800,000 mmbtu of natural gas for the year ended December 31, 2007, partially offset by its premium paid from its purchase of an option to purchase 1,200,000 mmbtu of natural gas. |
| ** | Includes the Partnership’s premium received from its sale of an option for it to sell 4,800,000 mmbtu of natural gas for the year ended December 31, 2007. |
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