Exhibit 99.1
PRO FORMA FINANCIAL DATA
The following unaudited pro forma financial data reflects Atlas Pipeline Holdings, L.P.’s (“AHD”) historical results as adjusted on a pro forma basis to give effect to Atlas Pipeline Partners, L.P.’s (the “Partnership”) May 2009 disposition of the NOARK gas gathering and interstate pipeline system (“NOARK”), its June 2009 disposition of the Appalachia gas gathering system (“Appalachia system”) and the associated repayments of debt from the net proceeds of these dispositions. The estimated adjustments to give effect to the Partnership’s dispositions of NOARK and the Appalachia system and the associated repayments of debt from the net proceeds of these dispositions are described in the notes to the unaudited pro forma financial data.
AHD’s unaudited pro forma condensed consolidated balance sheet information reflects the Partnership’s dispositions of NOARK and the Appalachia system as if they occurred as of March 31, 2009, and AHD’s unaudited pro forma condensed consolidated statement of operations information for the three months ended March 31, 2009 and 2008 and the twelve months ended December 31, 2008, 2007 and 2006 reflect the transactions as if they occurred as of the beginning of the respective period.
The unaudited pro forma condensed consolidated balance sheet and the pro forma condensed consolidated statements of operations were derived by adjusting AHD’s historical consolidated financial statements. However, AHD’s management believes that the adjustments provide a reasonable basis for presenting the significant effects of the transactions described above. The unaudited pro forma financial data presented are for informational purposes only and are based upon available information and assumptions that management believes are reasonable under the circumstances. You should not construe the unaudited pro forma financial data as indicative of the financial position or results of operations that AHD would have achieved had the transactions been consummated on the dates assumed. Moreover, they do not purport to represent AHD’s consolidated financial position or results of operations for any future date or period.
The unaudited pro forma condensed consolidated balance sheet and the pro forma condensed consolidated statements of operations include AHD’s historical consolidated financial statements, which have been adjusted to reflect the adoption of Statement of Financial Accounting Standards No. 160, “Non-controlling Interests in Consolidated Financial Statements-an amendment of ARB No. 51” (“SFAS No. 160”). SFAS No. 160 amends ARB No. 51 to establish accounting and reporting standards for the non-controlling interest (minority interest) in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. SFAS No. 160 also requires consolidated net income to be reported and disclosed on the face of the consolidated statement of operations at amounts that include the amounts attributable to both the parent and the non-controlling interest. AHD adopted the requirements of SFAS No. 160 on January 1, 2009.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
MARCH 31, 2009
(in thousands)
| Historical | NOARK | NOARK Disposition Adjustments | Appalachia System | Appalachia System Disposition Adjustments | Pro Forma | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,533 | $ | (75 | ) | $ | 294,500 | (a) | $ | — | $ | 87,795 | (d) | $ | 2,458 | |||||||||
| (294,500 | )(b) | — | (87,795 | )(e) | ||||||||||||||||||||
Accounts receivable | 81,302 | (6,680 | ) | — | (158 | ) | — | 74,464 | ||||||||||||||||
Prepaid expenses and other | 10,923 | (205 | ) | — | (6 | ) | — | 10,712 | ||||||||||||||||
Total current assets | 94,758 | (6,960 | ) | — | (164 | ) | — | 87,634 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 2,073,517 | (240,940 | ) | — | (106,259 | ) | — | 1,726,318 | ||||||||||||||||
INTANGIBLES, NET | 187,258 | — | — | — | — | 187,258 | ||||||||||||||||||
INVESTMENT IN JOINT VENTURE | — | — | — | — | 78,818 | (d) | 78,818 | |||||||||||||||||
OTHER ASSETS, NET | 27,460 | (23 | ) | (2,267 | )(c) | — | (26 | )(f) | 25,144 | |||||||||||||||
| $ | 2,382,993 | $ | (247,923 | ) | $ | (2,267 | ) | $ | (106,423 | ) | $ | 78,792 | $ | 2,105,172 | ||||||||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||||||
Accounts payable | $ | 51,626 | $ | (2,349 | ) | $ | — | $ | (2,065 | ) | $ | — | $ | 47,212 | ||||||||||
Accrued producer liabilities | 39,618 | (573 | ) | — | — | — | 39,045 | |||||||||||||||||
Current portion of derivative liability | 67,265 | — | — | — | — | 67,265 | ||||||||||||||||||
Preferred unit redemption obligation | 15,000 | — | — | — | — | 15,000 | ||||||||||||||||||
Accrued liabilities | 39,974 | (3,547 | ) | — | (45 | ) | — | 36,382 | ||||||||||||||||
Accounts payable - affiliates | 12,664 | — | — | — | — | 12,664 | ||||||||||||||||||
Total current liabilities | 226,147 | (6,469 | ) | — | (2,110 | ) | — | 217,568 | ||||||||||||||||
LONG-TERM DERIVATIVE LIABILITY | 23,291 | — | — | — | — | 23,291 | ||||||||||||||||||
LONG-TERM DEBT | 1,571,403 | — | (294,500 | )(b) | — | (87,795 | )(e) | 1,189,108 | ||||||||||||||||
OTHER LONG-TERM LIABILITIES | 533 | — | — | — | — | 533 | ||||||||||||||||||
PARTNERS’ CAPITAL: | ||||||||||||||||||||||||
Common limited partners’ interests | (11,138 | ) | — | 7,575 | (a) | — | 8,896 | (d) | 5,005 | |||||||||||||||
| (324 | )(c) | — | (4 | )(f) | ||||||||||||||||||||
Equity | — | (241,454 | ) | 241,454 | (a) | (104,313 | ) | 104,313 | (d) | — | ||||||||||||||
Accumulated other comprehensive loss | (14,721 | ) | — | — | — | — | (14,721 | ) | ||||||||||||||||
| (25,859 | ) | (241,454 | ) | 248,705 | (104,313 | ) | 113,205 | (9,716 | ) | |||||||||||||||
Non-controlling interests | 587,478 | — | 45,471 | (a) | — | 53,404 | (d) | 684,388 | ||||||||||||||||
| (1,943 | )(c) | — | (22 | )(f) | ||||||||||||||||||||
Total partners’ capital | 561,619 | (241,454 | ) | 292,233 | (104,313 | ) | 166,587 | 674,672 | ||||||||||||||||
| $ | 2,382,993 | $ | (247,923 | ) | $ | (2,267 | ) | $ | (106,423 | ) | $ | 78,792 | $ | 2,105,172 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2009
(in thousands, except per share data)
| Historical | NOARK | NOARK Disposition Adjustments | Appalachia System | Appalachia System Disposition Adjustments | Pro Forma | |||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||
Natural gas and liquids | $ | 158,618 | $ | (3,468 | ) | $ | — | $ | (371 | ) | $ | — | $ | 154,779 | ||||||||||
Transportation, compression and other fees - affiliates | 10,068 | — | — | (10,068 | ) | — | — | |||||||||||||||||
Transportation, compression and other fees - third parties | 16,412 | (12,537 | ) | — | (108 | ) | — | 3,767 | ||||||||||||||||
Equity income in Joint Venture | — | — | — | — | 2,674 | (j) | 2,674 | |||||||||||||||||
Other income, net | 5,149 | — | — | — | — | 5,149 | ||||||||||||||||||
Total revenue and other income, net | 190,247 | (16,005 | ) | — | (10,547 | ) | 2,674 | 166,369 | ||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Natural gas and liquids | 138,059 | (3,314 | ) | — | (189 | ) | — | 134,556 | ||||||||||||||||
Plant operating | 13,823 | — | — | — | — | 13,823 | ||||||||||||||||||
Transportation and compression | 4,767 | (1,436 | ) | — | (3,118 | ) | — | 213 | ||||||||||||||||
General and administrative | 10,108 | (1,036 | ) | — | — | — | 9,072 | |||||||||||||||||
Compensation reimbursement - affiliates | 375 | — | — | — | — | 375 | ||||||||||||||||||
Depreciation and amortization | 24,680 | (2,012 | ) | — | (1,782 | ) | — | 20,886 | ||||||||||||||||
Interest | 21,691 | (26 | ) | (2,345 | )(g) | — | (633 | )(k) | 20,980 | |||||||||||||||
| 2,267 | (h) | — | 26 | (l) | ||||||||||||||||||||
Total costs and expenses | 213,503 | (7,824 | ) | (78 | ) | (5,089 | ) | (607 | ) | 199,905 | ||||||||||||||
Net (loss) income | (23,256 | ) | (8,181 | ) | 78 | (5,458 | ) | 3,281 | (33,536 | ) | ||||||||||||||
Income attributable to non-controlling interests | 20,173 | — | 6,946 | (i) | — | 1,866 | (m) | 28,985 | ||||||||||||||||
Net (loss) income attributable to common limited partners | $ | (3,083 | ) | $ | (8,181 | ) | $ | 7,024 | $ | (5,458 | ) | $ | 5,147 | $ | (4,551 | ) | ||||||||
Net (loss) income attributable to common limited partners per unit: | ||||||||||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.16 | ) | ||||||||||||||||||
Diluted | $ | (0.11 | ) | $ | (0.16 | ) | ||||||||||||||||||
Weighted average common limited partner units outstanding | ||||||||||||||||||||||||
Basic | 27,659 | 27,659 | ||||||||||||||||||||||
Diluted | 27,659 | 27,659 | ||||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2008
(in thousands, except per share data)
| Historical | NOARK | NOARK Disposition Adjustments | Appalachia System | Appalachia System Disposition Adjustments | Pro Forma | |||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||
Natural gas and liquids | $ | 366,119 | $ | (6,504 | ) | $ | — | $ | (960 | ) | $ | — | $ | 358,655 | ||||||||||
Transportation, compression and other fees - affiliates | 9,159 | — | — | (9,159 | ) | — | — | |||||||||||||||||
Transportation, compression and other fees - third parties | 14,862 | (9,867 | ) | — | (213 | ) | — | 4,782 | ||||||||||||||||
Equity income in joint venture | — | — | — | — | 3,054 | (j) | 3,054 | |||||||||||||||||
Other income, net | (86,750 | ) | — | — | — | — | (86,750 | ) | ||||||||||||||||
Total revenue and other income, net | 303,390 | (16,371 | ) | — | (10,332 | ) | 3,054 | 279,741 | ||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Natural gas and liquids | 276,664 | (2,838 | ) | — | (482 | ) | — | 273,344 | ||||||||||||||||
Plant operating | 14,935 | — | — | — | — | 14,935 | ||||||||||||||||||
Transportation and compression | 3,812 | (1,500 | ) | — | (2,275 | ) | — | 37 | ||||||||||||||||
General and administrative | 5,277 | (828 | ) | — | — | — | 4,449 | |||||||||||||||||
Compensation reimbursement - affiliates | 1,129 | — | — | — | — | 1,129 | ||||||||||||||||||
Depreciation and amortization | 21,844 | (1,796 | ) | — | (1,343 | ) | — | 18,705 | ||||||||||||||||
Interest | 20,822 | 370 | (4,776 | )(g) | — | (1,306 | )(k) | 17,403 | ||||||||||||||||
| 2,267 | (h) | — | 26 | (l) | ||||||||||||||||||||
Asset impairment | 3,981 | (3,981 | ) | — | — | — | — | |||||||||||||||||
Total costs and expenses | 348,464 | (10,573 | ) | (2,509 | ) | (4,100 | ) | (1,280 | ) | 330,002 | ||||||||||||||
Net (loss) income | (45,074 | ) | (5,798 | ) | 2,509 | (6,232 | ) | 4,334 | (50,261 | ) | ||||||||||||||
Income attributable to non-controlling interests | 42,254 | — | 2,826 | (i) | — | 1,638 | (m) | 46,718 | ||||||||||||||||
Net (loss) income attributable to common limited partners | $ | (2,820 | ) | $ | (5,798 | ) | $ | 5,335 | $ | (6,232 | ) | $ | 5,972 | $ | (3,543 | ) | ||||||||
Net (loss) income attributable to common limited partners per unit: | ||||||||||||||||||||||||
Basic | $ | (0.10 | ) | $ | (0.13 | ) | ||||||||||||||||||
Diluted | $ | (0.10 | ) | $ | (0.13 | ) | ||||||||||||||||||
Weighted average common limited partner units outstanding | ||||||||||||||||||||||||
Basic | 27,350 | 27,350 | ||||||||||||||||||||||
Diluted | 27,350 | 27,350 | ||||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2008
(in thousands, except per unit data)
| Historical | NOARK | NOARK Disposition Adjustments | Appalachia System | Appalachia System Disposition Adjustments | Pro Forma | |||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||
Natural gas and liquids | $ | 1,370,000 | $ | (27,218 | ) | $ | — | $ | (3,730 | ) | $ | — | $ | 1,339,052 | ||||||||||
Transportation, compression and other fees - affiliates | 43,293 | — | — | (43,293 | ) | — | — | |||||||||||||||||
Transportation, compression and other fees - third parties | 56,416 | (35,220 | ) | — | (724 | ) | — | 20,472 | ||||||||||||||||
Equity income in joint venture | — | — | — | — | 13,210 | (j) | 13,210 | |||||||||||||||||
Other income (loss), net | (55,502 | ) | 17 | — | — | — | (55,485 | ) | ||||||||||||||||
Total revenue and other income (loss), net | 1,414,207 | (62,421 | ) | — | (47,747 | ) | 13,210 | 1,317,249 | ||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Natural gas and liquids | 1,086,142 | (5,202 | ) | — | (1,824 | ) | — | 1,079,116 | ||||||||||||||||
Plant operating | 60,835 | — | — | — | — | 60,835 | ||||||||||||||||||
Transportation and compression | 17,886 | (6,702 | ) | — | (10,644 | ) | — | 540 | ||||||||||||||||
General and administrative | 2,496 | (4,469 | ) | — | — | — | (1,973 | ) | ||||||||||||||||
Compensation reimbursement - affiliates | 1,487 | — | — | — | — | 1,487 | ||||||||||||||||||
Depreciation and amortization | 90,124 | (7,176 | ) | — | (6,015 | ) | — | 76,933 | ||||||||||||||||
Interest | 86,705 | 778 | (16,259 | )(g) | — | (4,314 | )(k) | 69,203 | ||||||||||||||||
| 2,267 | (h) | — | 26 | (l) | ||||||||||||||||||||
Goodwill and other asset impairment | 698,508 | (21,634 | ) | — | (2,304 | ) | — | 674,570 | ||||||||||||||||
Gain on early extinguishment of debt | (19,867 | ) | — | — | — | — | (19,867 | ) | ||||||||||||||||
Total costs and expenses | 2,024,316 | (44,405 | ) | (13,992 | ) | (20,787 | ) | (4,288 | ) | 1,940,844 | ||||||||||||||
Net (loss) income | (610,109 | ) | (18,016 | ) | 13,992 | (26,960 | ) | 17,498 | (623,595 | ) | ||||||||||||||
Loss attributable to non-controlling interests | 536,456 | — | 3,437 | (i) | — | 8,043 | (m) | 547,936 | ||||||||||||||||
Net (loss) income attributable to common limited partners | $ | (73,653 | ) | $ | (18,016 | ) | $ | 17,429 | $ | (26,960 | ) | $ | 25,541 | $ | (75,659 | ) | ||||||||
Net loss attributable to common limited partners per unit: | ||||||||||||||||||||||||
Basic | $ | (2.68 | ) | $ | (2.75 | ) | ||||||||||||||||||
Diluted | $ | (2.68 | ) | $ | (2.75 | ) | ||||||||||||||||||
Weighted average common limited partner units outstanding | ||||||||||||||||||||||||
Basic | 27,511 | 27,511 | ||||||||||||||||||||||
Diluted | 27,511 | 27,511 | ||||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007
(in thousands, except per unit data)
| Historical | NOARK | NOARK Disposition Adjustments | Appalachia System | Appalachia System Disposition Adjustments | Pro Forma | |||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||
Natural gas and liquids | $ | 761,118 | $ | (21,267 | ) | $ | — | $ | (1,565 | ) | $ | — | $ | 738,286 | ||||||||||
Transportation, compression and other fees - affiliates | 33,169 | — | — | (33,169 | ) | — | — | |||||||||||||||||
Transportation, compression and other fees - third parties | 48,616 | (35,309 | ) | — | (575 | ) | — | 12,732 | ||||||||||||||||
Equity income in joint venture | — | — | — | — | 11,550 | (j) | 11,550 | |||||||||||||||||
Other income (loss), net | (174,084 | ) | — | — | — | — | (174,084 | ) | ||||||||||||||||
Total revenue and other income (loss), net | 668,819 | (56,576 | ) | — | (35,309 | ) | 11,550 | 588,484 | ||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Natural gas and liquids | 587,524 | (11,107 | ) | — | (847 | ) | — | 575,570 | ||||||||||||||||
Plant operating | 34,667 | — | — | — | — | 34,667 | ||||||||||||||||||
Transportation and compression | 13,484 | (7,124 | ) | — | (6,235 | ) | — | 125 | ||||||||||||||||
General and administrative | 58,622 | (3,969 | ) | — | — | — | 54,653 | |||||||||||||||||
Compensation reimbursement - affiliates | 5,939 | — | — | — | — | 5,939 | ||||||||||||||||||
Depreciation and amortization | 50,982 | (7,078 | ) | — | (4,655 | ) | — | 39,249 | ||||||||||||||||
Interest | 62,629 | 1,065 | (22,971 | )(g) | — | (6,848 | )(k) | 36,168 | ||||||||||||||||
| 2,267 | (h) | — | 26 | (l) | ||||||||||||||||||||
Total costs and expenses | 813,847 | (28,213 | ) | (20,704 | ) | (11,737 | ) | (6,822 | ) | 746,371 | ||||||||||||||
Net (loss) income | (145,028 | ) | (28,363 | ) | 20,704 | (23,572 | ) | 18,372 | (157,887 | ) | ||||||||||||||
Income attributable to non-controlling interests | 129,381 | — | 6,508 | (i) | — | 4,403 | (m) | 140,292 | ||||||||||||||||
Net (loss) income attributable to common limited partners | $ | (15,647 | ) | $ | (28,363 | ) | $ | 27,212 | $ | (23,572 | ) | $ | 22,775 | $ | (17,595 | ) | ||||||||
Net loss attributable to common limited partners per unit: | ||||||||||||||||||||||||
Basic | $ | (0.66 | ) | $ | (0.74 | ) | ||||||||||||||||||
Diluted | $ | (0.66 | ) | $ | (0.74 | ) | ||||||||||||||||||
Weighted average common limited partner units outstanding | ||||||||||||||||||||||||
Basic | 23,806 | 23,806 | ||||||||||||||||||||||
Diluted | 23,806 | 23,806 | ||||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2006
(in thousands, except per unit data)
| Historical | NOARK | NOARK Disposition Adjustments | Appalachia System | Appalachia System Disposition Adjustments | Pro Forma | |||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||
Natural gas and liquids | $ | 391,356 | $ | (42,852 | ) | $ | — | $ | — | $ | — | $ | 348,504 | |||||||||||
Transportation, compression and other | 30,189 | — | — | (30,189 | ) | — | — | |||||||||||||||||
Transportation, compression and other | 30,735 | (25,019 | ) | — | (82 | ) | — | 5,634 | ||||||||||||||||
Equity income in joint venture | — | — | — | — | 10,610 | (j) | 10,610 | |||||||||||||||||
Other income (loss), net | 12,781 | (250 | ) | — | — | — | 12,531 | |||||||||||||||||
Total revenue and other income (loss), net | 465,061 | (68,121 | ) | — | (30,271 | ) | 10,610 | 377,279 | ||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||
Natural gas and liquids | 334,299 | (40,155 | ) | — | — | — | 294,144 | |||||||||||||||||
Plant operating | 15,722 | — | — | — | — | 15,722 | ||||||||||||||||||
Transportation and compression | 10,753 | (5,697 | ) | — | (4,946 | ) | — | 110 | ||||||||||||||||
General and administrative | 21,155 | (6,702 | ) | — | — | — | 14,453 | |||||||||||||||||
Compensation reimbursement - affiliates | 2,319 | — | — | — | — | 2,319 | ||||||||||||||||||
Depreciation and amortization | 22,994 | (6,234 | ) | — | (3,672 | ) | — | 13,088 | ||||||||||||||||
Interest | 24,726 | (878 | ) | (21,085 | )(g) | — | — | (k) | 5,056 | |||||||||||||||
| 2,267 | (h) | — | 26 | (l) | ||||||||||||||||||||
Total costs and expenses | 431,968 | (59,666 | ) | (18,818 | ) | (8,618 | ) | 26 | 344,892 | |||||||||||||||
Net income (loss) | 33,093 | (8,455 | ) | 18,818 | (21,653 | ) | 10,584 | 32,387 | ||||||||||||||||
Income attributable to non-controlling interests | (16,453 | ) | — | (8,859 | )(i) | — | 9,467 | (m) | (15,845 | ) | ||||||||||||||
Net income (loss) attributable to common limited partners | $ | 16,640 | $ | (8,455 | ) | $ | 9,959 | $ | (21,653 | ) | $ | 20,051 | $ | 16,542 | ||||||||||
Allocation of net income (loss): | ||||||||||||||||||||||||
Portion applicable to owners’ interest (period prior to the initial public offering on July 26, 2006) | $ | 10,236 | $ | 10,180 | ||||||||||||||||||||
Portion applicable to common limited partners’ interest (period subsequent to the initial public offering on July 26, 2006) | 6,404 | 6,362 | ||||||||||||||||||||||
Net income (loss) | $ | 16,640 | $ | 16,542 | ||||||||||||||||||||
Net income attributable to common limited partners per unit: | ||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.30 | ||||||||||||||||||||
Diluted | $ | 0.30 | $ | 0.30 | ||||||||||||||||||||
Weighted average common limited partner units outstanding | ||||||||||||||||||||||||
Basic | 21,100 | 21,100 | ||||||||||||||||||||||
Diluted | 21,102 | 21,102 | ||||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| (a) | To reflect the Partnership’s net proceeds of $294.5 million from the May 2009 disposition of NOARK and record an estimated gain on disposition of $53.0 million, which was allocated to partner’s capital on AHD’s condensed consolidated balance sheet based upon AHD’s equity interests and non-controlling interests. |
| (b) | To reflect the application of the Partnership’s net proceeds from the disposition of NOARK to reduce borrowings under its senior secured credit facility. |
| (c) | To reflect the write-off of the Partnership’s unamortized deferred financing costs in connection with the reduction of its borrowings under its senior secured term loan noted in (b), which was allocated to partner’s capital on AHD’s condensed consolidated balance sheet based upon AHD’s equity interests and non-controlling interests. |
| (d) | To reflect the Partnership’s June 2009 contribution of its Appalachia system to Laurel Mountain Midstream, LLC (“Laurel Mountain”), a joint venture, in return for net proceeds of $90.0 million in cash, preferred distribution rights entitling the Partnership to receive payments under a $25.5 million note, and a 49% ownership interest in Laurel Mountain, with the Partnership recognizing an estimated gain on disposition of $62.3 million, which was allocated to partner’s capital on AHD’s condensed consolidated balance sheet based upon AHD’s equity interests and non-controlling interests. The Partnership reflected its 49% ownership interest in Laurel Mountain within investment in joint venture on AHD’s condensed consolidated balance sheet, which includes the $25.5 million note, a $2.2 million working capital contribution to Laurel Mountain, which was withheld by Laurel Mountain from the $90.0 million in cash received from the disposition, and its ownership interest in the other net assets of Laurel Mountain. |
| (e) | To reflect the application of the Partnership’s net proceeds from the disposition of the Appalachia system to reduce borrowings under its senior secured credit facility. |
| (f) | To reflect the write-off of the Partnership’s unamortized deferred financing costs in connection with the reduction of its borrowings under its senior secured term loan noted in (e), which was allocated to partner’s capital on AHD’s condensed consolidated balance sheet based upon AHD’s equity interests and non-controlling interests. |
| (g) | To reflect the adjustment to interest expense to reflect the Partnership’s repayment of $294.5 million of its senior secured credit facility borrowings from the net proceeds of the sale of NOARK. The weighted average historical interest rates utilized for the interest expense adjustment were 3.2% and 6.5% for the three months ended March 31, 2009 and 2008, respectively, and 5.5%, 7.8% and 8.1% for the twelve months ended December 31, 2008, 2007 and 2006, respectively. For the year ended December 31, 2006, the interest expense adjustment was limited to $21.1 million for the repayment of debt with the net proceeds from the disposition of NOARK, which is the maximum amount of cash interest expense subject to pro forma adjustment. |
| (h) | To reflect the write-off of unamortized deferred financing costs in connection with the Partnership’s repayment of $244.5 million of senior secured term loan borrowings, which may not be reborrowed, with the a portion of the net proceeds from the disposition of NOARK. |
| (i) | To reflect the adjustment of income allocated to AHD’s non-controlling interests resulting from adjustments consisting of the Partnership’s disposition of NOARK, the repayment of borrowings under its senior secured credit facility, and the write-off of deferred finance costs. |
| (j) | To reflect the Partnership’s 49% equity interest in the net income of Laurel Mountain, which the Partnership received as partial consideration for its disposition of the Appalachia system, based upon the historical statement of operations data for the Appalachia system. |
| (k) | To reflect the adjustment to interest expense to reflect the Partnership’s repayment of $87.8 million of its senior secured credit facility borrowings from the net proceeds of the sale of the Appalachia system. The weighted average historical interest rates utilized for the interest expense adjustment were 3.2% and 6.5% for the three months ended March 31, 2009 and 2008, respectively, and 5.5%, 7.8% and 8.1% for the twelve months ended December 31, 2008, 2007 and 2006, respectively. For the year ended December 31, 2006, there was no interest expense adjustment for the repayment of debt with the net proceeds from the disposition of the Appalachia system, as there was no interest expense subject to pro forma adjustment subsequent to the pro forma interest expense adjustment associated with the disposition of NOARK. |
| (l) | To reflect the write-off of unamortized deferred financing costs in connection with the Partnership’s repayment of $2.8 million of senior secured term loan borrowings, which may not be reborrowed, with the a portion of the net proceeds from the disposition of the Appalachia system. |
| (m) | To reflect the adjustment of income allocated to AHD’s non-controlling interests resulting from adjustments consisting of the Partnership’s disposition of the Appalachia system, the recognition of its equity interest in the net income of Laurel Mountain, the repayment of borrowings under its senior secured credit facility, and the write-off of deferred finance costs. |