Atlas Pipeline Partners, L.P. Announces Board Approval Of Third Quarter Distribution And Additional Growth Projects
-- Third quarter distribution declared at $0.62 per limited common unit, up approximately 9% year-over-year
-- Partnership announces approval of growth projects in the Permian Basin and Woodford Shale
-- Increasing Permian Basin activity in Martin County, TX will extend APL footprint at WestTX system
-- Woodford projects will interconnect Velma and Arkoma systems and add gathering capacity to facilitate production from the South Central Oklahoma Oil Province (SCOOP)
PHILADELPHIA, Oct. 24, 2013 /PRNewswire/ -- Atlas Pipeline Partners, L.P. (NYSE: APL) ("APL", "Atlas Pipeline", or the "Partnership") announced today that the Partnership's Managing Board of Directors have approved the third quarter distribution of 2013 as well as additional growth projects in the Woodford Shale and Permian Basin.
The Partnership has declared a quarterly cash distribution for the third quarter of 2013 of $0.62 per common limited partner unit, payable Thursday, November 14, 2013 to holders of record as of Thursday, November 7, 2013. The third quarter distribution of $0.62 per common limited partner unit is an approximately a 9% increase year-over-year and the 11th increase in the previous 13 quarters.
In the Permian Basin in West Texas, associated natural gas volumes are continuing to exceed the Partnership's expectations. Incremental volume growth from the northern portion of the Partnership's gathering system, where many of the Partnership's producer customers are active, has resulted in the need for additional gathering infrastructure in that area. APL's Managing Board of Directors has approved to extend the WestTX gathering system's footprint further into Martin County, Texas through a series of growth projects which will service the anticipated needs of our producer customers. The Partnership will lay a high pressure gathering line into Martin County as well as add compression to increase utilization of WestTX's existing assets, including the recently announced Edward plant. In addition, this extension of the WestTX system is expected to accelerate the Partnership's need to install additional processing capacity, potentially by the end of 2015. The initial high pressure gathering pipeline and associated compression is expected to cost approximately $50 million, or approximately $36 million net to the Partnership.
In the Woodford Shale in Southern Oklahoma, activity behind both the Velma and Arkoma systems continues to increase. Incremental demand for processing capacity has increased at Velma, where the emerging South Central Oklahoma Oil Province (SCOOP) play has attracted significant producer interest. APL has entered into fixed fee arrangements with some of these producers and as a result will be adding gathering infrastructure at an expected cost of $40 million to facilitate this anticipated growth. The Velma system's processing capacity today is fully utilized, and the Partnership will provide capacity for the incremental SCOOP production by laying approximately 55 miles of pipeline between the Velma system and the Arkoma system. The Arkoma system is nearly fully utilized today, but will expand by an additional 120 million cubic feet per day (MMCFD) upon installation of the Stonewall plant, expected in the first quarter of 2014. The Stonewall plant is expandable to 200 MMCFD with minimal capital outlay. The capital to interconnect the Velma and Arkoma systems is expected to cost approximately $80 million with anticipated completion in the third quarter of 2014.
Atlas Pipeline Partners, L.P. (NYSE: APL) is active in the gathering and processing segments of the midstream natural gas industry. In Oklahoma, southern Kansas, Texas, and Tennessee, APL owns and operates 14 active gas processing plants, 18 gas treating facilities, as well as approximately 11,200 miles of active intrastate gas gathering pipeline. APL also has a 20% interest in West Texas LPG Pipeline Limited Partnership, which is operated by Chevron Corporation. For more information, visit the Partnership's website at www.atlaspipeline.com or contact IR@atlaspipeline.com.
Atlas Energy, L.P. (NYSE: ATLS) is a master limited partnership which owns all of the general partner Class A units and incentive distribution rights and an approximate 37% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P. Additionally, Atlas Energy owns and operates the general partner of its midstream oil & gas subsidiary, Atlas Pipeline Partners, L.P., through all of the general partner interest, all the incentive distribution rights and an approximate 6% limited partner interest. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.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. Atlas Pipeline does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in commodity prices and 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 on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.
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SOURCE Atlas Pipeline Partners, L.P.
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