Atlas Pipeline Partners, L.P. Announces Further Significant Expansion In Permian Basin

PHILADELPHIA, July 15, 2013 /PRNewswire/ -- Atlas Pipeline Partners, L.P. (NYSE: APL) ("APL", "Atlas Pipeline", or the "Partnership") today announced plans to construct a new 200 MMCFD cryogenic processing plant to accommodate rapidly increasing Permian production.  The new facility, to be known as the Edward plant, will be constructed to have initial capacity of 100 MMCFD, which is expected to be in service in the second half of 2014.  As production increases behind the system, placement of additional compression and refrigeration equipment to increase the plant's capacity to 200 MMCFD, will come in service as needed.  The Partnership expects cash flows from the Edward expansion to materialize in meaningful amounts throughout 2015 and beyond.                  

Completion of the full facility will increase processing capacity at the WestTX system from 455 MMCFD to 655 MMCFD, expanding further beyond the 200 MMCFD Driver plant addition that was brought into service in April 2013.  The expected cost for the Edward plant itself is estimated to be $100-120 million net to the Partnership, which includes both phases of the expansion of the plant, with the majority of the plant capex being deployed in the 2013-2014 time period.  Additionally, future capex will be deployed in the form of expected compression and well connection costs as needed to fully utilize the Edward plant's capacity.  

Atlas Pipeline's partner on the WestTX system, Pioneer Natural Resources, Inc. (NYSE: PXD), which owns a 27.2% interest in the facility, will participate in the projects costs and cash flows and will anchor the production growth behind the expansion, complimented by numerous third party producer customers. 

"We are excited to announce another major expansion of 200 million cubic feet per day of future processing capacity at our West Texas facility.  This expansion, coming just on the heels of the 200 million cubic feet per day Driver plant that was just brought into service this last quarter, shows how active producers are in the Permian, including our partner, Pioneer.  By the time Edward is fully implemented, our capacity will have more than tripled in West Texas in less than six years.  We will continue to invest in our assets to serve our customers as opportunities arise to ensure we are the service provider of choice in the areas in which we operate," stated Eugene N. Dubay, Chief Executive Officer of the Partnership.

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, northern and western Texas, and Tennessee, APL owns and operates 14 active gas processing plants, 18 gas treating facilities, as well as approximately 10,600 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 [email protected].

Atlas Energy, L.P. (NYSE: ATLS) is a master limited partnership which 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 9% limited partner interest. Additionally, Atlas Energy owns all of the general partner Class A units and incentive distribution rights and an approximate 33% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P. (NYSE: ARP).  For more information, please visit the Partnership's website at www.atlasenergy.com, or contact Investor Relations at [email protected].

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 process 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, reports on Form 8-K and annual reports on Form 10-K.

SOURCE Atlas Pipeline Partners, L.P.