Atlas Pipeline Partners, L.P. Reports Operating Results For the Third Quarter of 2004.PHILADELPHIA Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. -- Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. Pipeline Partners, L.P. (NYSE NYSE See: New York Stock Exchange :APL (A Programming Language) A high-level mathematical programming language noted for its brevity and matrix generation capabilities. Developed by Kenneth Iverson in the mid-1960s, it runs on micros to mainframes and is often used to develop mathematical models. ) (the "Partnership or APL") reported revenues of $34.9 million and $43.7 million for the three and nine month periods ended September September: see month. 30, 2004, respectively, compared to $4.2 million and $11.9 million for the similar periods ended September 30, 2003, respectively. The significant increase from period to period is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the July July: see month. 16, 2004 acquisition of Spectrum Field Services, Inc. Net cash provided by operations was $10.1 million and $17.7 million for the three and nine month periods ended September 30, 2004, respectively, compared to $6.4 million and $11.5 million for the similar periods ended September 30, 2003, respectively. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ------------------
2004 2003 2004 2003
--------- --------- -------- ---------
(unaudited, in thousands)
Net income $ 1,975 $ 2,669 $ 7,224 $ 7,267
Interest expense 1,075 50 1,202 212
Depreciation and amortization 1,022 438 2,132 1,266
--------- --------- -------- ---------
EBITDA (see Note 1) $ 4,072 $ 3,157 $ 10,558 $ 8,745
========= ========= ======== =========
Note 1. EBITDA represents net income before interest expense,
income tax (not applicable to the Partnership), depreciation
and amortization. Management of APL believes that EBITDA
provides additional information with respect to APL's ability
to meet its debt service, capital expense and working capital
requirements. EBITDA is a commonly used measure of a business'
ability to generate cash flow without consideration of its
financing structure. This measure is widely used by commercial
banks, investment bankers, rating agencies and investors in
evaluating performance relative to peers and pre-set
performance standards. It is also a financial measurement
that, with certain negotiated adjustments, is reported to
APL's banks to establish conformance with its financial
covenants under its current credit facility. EBITDA is not a
measure of financial performance under GAAP and, accordingly,
should not be considered as a substitute for net income, or
cash flows from operating activities prepared in accordance
with GAAP.
Pro-forma net income, a non-GAAP measure, was $5.0 million and $10.2 million for the three and nine month periods ended September 30, 2004, respectively, or $.58 and $1.56 per limited partner unit for each period, respectively. This excludes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $3.0 million resulting principally from the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of acquisition costs in connection with the terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: acquisition of Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States Pipeline Company. The Partnership is currently pursuing its remedies under the acquisition agreement. The following table reconciles net income to pro-forma net income for the three and nine month periods ended September 30, 2004 and 2003. (See Note 2)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ------------------
2004 2003 2004 2003
---------- -------- --------- --------
(unaudited, in thousands, except per
unit data)
Net income $ 1,975 $ 2,669 $ 7,224 $ 7,267
Charge resulting from
terminated acquisition 2,987 - 2,987 -
---------- -------- --------- --------
Pro-forma net income (see Note
2) $ 4,962 $ 2,669 $ 10,211 $ 7,267
========== ======== ========= ========
Pro-forma net income - limited
partners $ 3,983 $ 2,352 $ 8,464 $ 6,611
========== ======== ========= ========
Pro-forma net income - general
partner $ 979 $ 317 $ 1,747 $ 656
========== ======== ========= ========
Weighted average limited
partner units - diluted 6,898 4,355 5,441 3,854
========== ======== ========= ========
Pro-forma net income per
limited partner unit -
diluted $ .58 $ .54 $ 1.56 $ 1.72
========== ======== ========== =======
Note 2. Pro-forma net income excludes the charge for "Terminated
acquisition" which refers to the net income of the Partnership
in the absence of expense charges related to the terminated
acquisition of Alaska Pipeline Company ("APC"). On July 1,
2004, SEMCO Energy, Inc., the owner of APC, sent APL a notice
purporting to terminate the transaction. APL is currently
pursuing its remedies under the acquisition agreement. In
connection with the acquisition, APL has incurred $3.0 million
of costs which, in accordance with GAAP policies, have been
fully expensed in the three month period ended September 30,
2004. The management of APL believes that the net income
excluding the charge for "Terminated acquisition" is more
fairly indicative of the continuing performance of the
Partnership during the three and nine month periods ended
September 30, 2004. Further, the resulting pro-forma net
income - limited partners, pro-forma net income - general
partner and pro-forma diluted net income per limited partner
unit have been presented for information purposes. Pro-forma
net income which excludes the charge for "Terminated
acquisition" is not a measure of financial performance under
GAAP and, accordingly, should not be considered as a
substitute for net income prepared in accordance with GAAP.
Net income was $2.0 million or $.15 per limited partner unit for the three months ended September 30, 2004 as compared to $2.7 million or $.54 per limited partner unit for the three months ended September 30, 2003. For the nine months ended September 30, 2004, net income was $7.2 million or $1.01 per limited partner unit as compared to $7.3 million or $1.72 per limited partner unit for the nine months ended September 30, 2003. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide E. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Chairman and Chief Executive Officer of the Partnership's general partner, stated "The past few months have been very productive for APL. In July we established a $135.0 million term loan and credit facility, led by Wachovia For Moravian settlements in North Carolina, see . Wachovia Corporation (NYSE: WB), based in Charlotte, North Carolina, is the third largest banking chain in the United States based on total deposits. Bank and Key Bank, and simultaneously completed the acquisition of Spectrum Field Services, Inc. for approximately $142.0 million. Shortly thereafter, we closed a follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. equity offering of 2.1 million limited partner units at $34.76 per unit, resulting in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $70.0 million which was used for long term funding of the Spectrum acquisition. On November November: see month. 5, 2004 we paid our regular distribution for the third quarter of 2004 in the amount of $.69 per common unit - the largest distribution in our five-year history. Our objective remains to build our partnership and maximize the return to our unitholders." Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. L. Staines Staines, city (1991 pop. 12,886), Surrey, SE England, on the Thames River. On the edge of Greater London, Staines is residential. There is some industry, such as the manufacture of diesel engines. Spelthorne Museum is there, and Thorpe Park, a theme park, is nearby. , President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Partnership's general partner, added: "Operations in both Appalachia Appalachia, region: see Appalachian Mountains. Appalachia West Virginia coal mining region known for its abysmal poverty. [Am. Hist.: NCE, 160] See : Poverty and the Mid-Continent regions have been focused on connecting new wells and further expansion of our pipeline system and compression and processing capacity to handle the current and anticipated demand. We believe that there will continue to be growing drilling activity around our systems and we believe we are in an excellent position to capture much of the resulting gas production." Atlas Pipeline Partners, L.P. is active in the gas gathering and processing segment of the mid-stream natural gas industry. In Appalachia, it owns and operates more than 1,400 miles of natural gas gathering pipelines in western Pennsylvania Western Pennsylvania consists of the western third of the state of Pennsylvania in the United States. Pittsburgh is the largest city in the region, with a metropolitan area of about 2.4 million people, and is the cultural center for Western Pennsylvania. , western New York
Western New York refers to the westernmost region of New York State. and eastern Ohio to which more than 4,250 wells are currently connected. APL gathers approximately 54 million cubic feet ("mcf") of gas per day from these wells. In the Mid-Continent region of southern Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). and northern Texas, APL owns and operates approximately 1,900 miles of gas gathering pipeline. APL transports approximately 55 million cubic feet of gas per day to its gas processing facility in Velma, Oklahoma Velma is a town in Stephens County, Oklahoma, United States. The population was 664 at the 2000 census. Geography Velma is located at (34.452394, -97.668439)GR1. where natural gas liquids (NGL NGL - A dialect of IGL. ) are removed. APL then sells the resulting gas and NGL and remits a portion of those proceeds to the producer. In both Appalachia and the Mid-Continent, the fees paid to APL are either a percentage of the gross selling price of the gas or NGL or a fixed fee per mcf transported. For more information, visit our website at www.atlaspipelinepartners.com or contact pschreiber@atlaspipelinepartners.com. Atlas America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Inc. (Nasdaq:ATLS ATLS Advanced Trauma Life Support ATLS Aerial Target Launch Ship ) is an energy company engaged primarily in the development and production of natural gas in the Appalachian Ap`pa`la´chi`an a. 1. Of or pertaining to a chain of mountains in the United States, commonly called the Allegheny ltname> mountains. Noun 1. Basin for its own account and for its investors through the offering of tax advantaged investment programs. Atlas America operates primarily in western Pennsylvania and eastern Ohio. Atlas America owns 100% of the general partner of APL and owns 1,641,026 subordinated common units of APL. For more information, please visit our website at www.atlasamerica.com, or contact investor relations Investor relations The process by which the corporation communicates with its investors. at pschreiber@atlasamerica.com. Resource America, Inc. (Nasdaq:REXI), the parent company of APL's general partner, is a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the energy, real estate and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries. Currently, Resource America manages assets of approximately $3.2 billion in these sectors. Statements made in this release include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which involve substantial risks and uncertainties. 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 competition within the energy industry, climactic cli·mac·tic also cli·mac·ti·cal adj. Relating to or constituting a climax. cli·mac  ti·cal·ly adv.Adj. 1. conditions and the price of gas and NGL in the Appalachian and Mid-Continent areas, actual versus projected volumetric volumetric /vol·u·met·ric/ (vol?u-met´rik) pertaining to or accompanied by measurement in volumes. vol·u·met·ric adj. Of or relating to measurement by volume. production from wells connected to the Partnership's gas-gathering pipeline systems, and the cost of supplies and services in the energy industry. The remainder of this release contains the Partnership's consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , statements of income and information related to its throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. volumes and related rates In differential calculus, related rates problems involve finding the rate at which a quantity is changing by relating that quantity to other quantities whose rates of change are known. The rate of change is usually with respect to time. during the periods indicated.
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2004 2003
-------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 29,020 $ 15,078
Accounts receivable 11,341 12
Prepaid expenses 808 67
-------------- -------------
Total current assets 41,169 15,157
Property, plant and equipment, net 172,312 29,628
Goodwill (net of accumulated amortization
of $285) 2,305 2,305
Other long-term assets 4,472 2,422
-------------- -------------
$ 220,258 $ 49,512
============== =============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Current portion of long-term debt $ 3,062 $ -
Accounts payable and accrued
liabilities 16,313 521
Accounts payable - affiliates 6,189 1,673
Distribution payable 6,030 3,073
-------------- -------------
Total current liabilities 31,594 5,267
Other long-term liabilities 2,060 -
Long-term debt, less current portion 57,158 -
Partners' capital (deficit):
Common unitholders, 5,563,659 and
2,713,659 units outstanding 132,224 43,551
Subordinated unitholder, 1,641,026
units outstanding (1,040) 354
General partner 2,190 340
Accumulated other comprehensive loss (3,928) -
-------------- -------------
Total partners' capital 129,446 44,245
-------------- -------------
$ 220,258 $ 49,512
============== =============
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ------------------
2004 2003 2004 2003
---------- -------- --------- --------
Revenues:
Natural gas and liquids $ 30,048 $ - $ 30,048 $ -
Transportation and
compression 4,665 4,163 13,344 11,816
Interest income and other 166 36 282 61
---------- -------- --------- --------
Total revenues 34,879 4,199 43,674 11,877
Costs and expenses:
Natural gas and liquids 24,588 - 24,588 -
Plant operating 931 - 931 -
Transportation and
compression 564 607 1,709 1,831
General and administrative 1,737 435 2,901 1,301
Depreciation and amortization 1,022 438 2,132 1,266
Interest expense 1,075 50 1,202 212
Terminated acquisition 2,987 - 2,987 -
---------- -------- --------- --------
Total costs and expenses 32,904 1,530 36,450 4,610
---------- -------- --------- --------
Net income $ 1,975 $ 2,669 $ 7,224 $ 7,267
========== ======== ========= ========
Net income - limited partners $ 1,016 $ 2,352 $ 5,497 $ 6,611
========== ======== ========= ========
Net income - general partner $ 959 $ 317 $ 1,727 $ 656
========== ======== ========= ========
Basic net income per limited
partner unit $ .15 $ .54 $ 1.01 $ 1.72
========== ======== ========= ========
Weighted average limited
partner units outstanding -
basic 6,839 4,355 5,416 3,854
========== ======== ========= ========
Diluted net income per limited
partner unit $ .15 $ .54 $ 1.01 $ 1.72
========== ======== ========= ========
Weighted average limited
partner units - diluted 6,898 4,355 5,441 3,854
========== ======== ========= ========
Results of Operations:
The following table sets forth certain information relating to the
average volumes transported or delivered, average gross margin rate
per mcf and average transportation rates per mcf for the periods
indicated.
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ------------------
2004 2003 2004 2003
---------- --------- --------- --------
(unaudited)
Average daily throughput
volumes in mcf (Mid-Continent) 55,056 - 55,056 -
Average daily throughput
volumes in mcf (Appalachia) 54,337 54,609 52,745 53,146
---------- --------- --------- --------
Total average daily throughput
volumes in mcf 109,393 54,609 107,801 53,146
========== ========= ========= ========
Average gross margin rate per
mcf (Mid-Continent) $ .78 $ - $ .78 $ -
========== ========= ========= ========
Average transportation rate per
mcf (Appalachia) $ .93 $ .83 $ .92 $ .81
========== ========= ========= ========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion