Atlas Pipeline Partners, L.P. Reports Record Operating Results For the Year Ended December 31, 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. -- Please replace the release dated March 11, 2005 with the following corrected version due to revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. made. The corrected release reads: ATLAS PIPELINE PARTNERS, L.P. REPORTS RECORD OPERATING RESULTS FOR THE YEAR ENDED DECEMBER December: see month. 31, 2004 Atlas 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 $91.3 million for the year ended December 31, 2004 compared to $15.7 million for the year ended December 31, 2003. Net income was $18.3 million or $2.60 per limited partner unit for the year ended December 31, 2004 as compared to $9.6 million or $2.17 per limited partner unit for the year ended December 31, 2003. Distributions to limited partners declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. during 2004 were $2.67 per common unit, compared to $2.39 per common unit during 2003, a 12% increase. The significant increases in revenues, distributions and net income from period to period reflect improvements in transported volumes and transportation fees, and the July July: see month. 2004 acquisition of Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006,[1] it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to based Spectrum Field Services, Inc. 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.
A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. , rating agencies and investors in evaluating performance relative to peers and pre-set performance standards, was $24.3 million for the year ended December 31, 2004 compared to $11.7 million for the year ended December 31, 2003. The following table reconciles EBITDA, net of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. adjustment reflecting the "Gain on arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the settlement" 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, to our net income for the years ended December 31, 2004 and 2003. (See Notes 1 and 2)
Year Ended Three Months Ended
December 31, December 31,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
(in thousands)
Net income $18,334 $ 9,639 $11,110 $ 2,372
Gain on arbitration settlement (1,457) - (4,444) -
Non-cash compensation expense 700 - 358 -
Interest expense 2,301 258 1,099 46
Depreciation and amortization 4,471 1,770 2,339 504
-------- -------- -------- --------
Pro - forma EBITDA (see Notes 1
and 2) $24,349 $11,667 $10,462 $ 2,922
======== ======== ======== ========
Due to the one-time nature of the "Gain on arbitration settlement", APL believes Pro-forma net income, a non-GAAP measure, more clearly presents APL's true operating performance during 2004. The following table reconciles net income to pro-forma net income for the three and nine month periods ended September September: see month. 30, 2004 and 2003. (See Note 2)
Year Ended Three Months Ended
December 31, December 31,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
(in thousands, except per unit data)
Net income $18,334 $ 9,639 $11,110 $ 2,372
Gain on arbitration settlement (1,457) - (4,444) -
-------- -------- -------- --------
Pro-forma net income (see Note 2) $16,877 $ 9,639 $ 6,666 $ 2,372
======== ======== ======== ========
Pro-forma net income - limited
partners $13,868 $ 8,651 $ 5,404 $ 2,040
======== ======== ======== ========
Pro-forma net income - general
partner $ 3,009 $ 988 $ 1,262 $ 332
======== ======== ======== ========
Weighted average limited partner
units - diluted 5,866 3,981 7,205 4,355
======== ======== ======== ========
Pro-forma net income per limited
partner unit - diluted $ 2.36 $ 2.17 $ 0.80 $ 0.47
======== ======== ======== ========
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.
Note 2. Pro-forma net income excludes "Gain on arbitration settlement"
in connection with the terminated acquisition of Alaska
Pipeline Company ("APC"). Due to its one-time nature, APL
believes that net income excluding this gain more clearly
presents APL's true operating performance during 2004.
Pro-forma net income which excludes "Gain on arbitration
settlement" 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.
Highlights of the year:
Corporate Activity
-- In April 2004 we closed a follow-on equity offering of 750
thousand limited partner units at $36.00 per unit, resulting
in net proceeds of approximately $25.4 million. In July 2004
we closed a follow-on equity offering of 2.1 million limited
partner units at $34.76 per unit, resulting in net proceeds of
approximately $69.5 million which was used for funding of the
Spectrum acquisition.
-- In May 2004, APL units were listed for trading on the New York
Stock Exchange.
-- In July 2004 we completed the acquisition of Spectrum Field
Services, Inc. for approximately $142.0 million. In connection
with this transaction, we established a $135.0 million term
loan and credit facility, led by Wachovia Bank and Key Bank.
-- In December 2004 we declared our 20th consecutive quarterly
distribution in the amount of $.72 per unit - the largest
distribution in our history. During 2004, total distributions
of $2.67 per common unit were declared compared to $2.39 per
unit during 2003. (Subsequently, in March 2005 we declared a
quarterly distribution of $.75 per unit.)
-- At year-end 2004 SEMCO Energy, Inc. paid us $5.5 million to
settle our claims relating to SEMCO's termination of the sale
of Alaska Pipeline Company to us. Total costs incurred by us
related to this transaction were approximately $4.0 million
resulting in a "Gain on arbitration settlement" of $1.5
million.
-- In March 2005, APL entered into an agreement to acquire the
"Elk City system", another gathering and processing system in
Oklahoma for total consideration of $190 million.
Operating Activity
-- Total average daily throughput volumes for 2004 increased to
an average of 109.8 million cubic feet per day, compared to an
average of 52.5 million per day during 2003.
-- Currently (March 2005)
-- Mid-continent inlet volumes are approximately 66 million
cubic feet of gas per day
-- Appalachian gathered volumes are approximately 53 million
cubic feet of gas per day
-- Total through-put volumes are approximately 119 million
cubic feet of gas per day
-- We connected 335 new wells to our Appalachian system during
2004 compared to 270 during 2003.
-- We connected 81 wells to our mid-continent system during the
period from July 14, 2004 (the Spectrum acquisition date) to
December 31, 2004, representing approximately 17 million cubic
feet per day of new gathered gas.
Atlas Pipeline Partners, L.P. is active in the gas gathering and processing segment of the mid-stream natural gas industry. In Appalachia Appalachia, region: see Appalachian Mountains. Appalachia West Virginia coal mining region known for its abysmal poverty. [Am. Hist.: NCE, 160] See : Poverty , 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 4,500 wells are currently connected. APL currently gathers approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 53 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 serving approximately 600 wells. Currently, APL transports approximately 66 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 BASIN Boulder Area Sustainability Information Network (Boulder, Colorado) BASIN Brothers And Sisters In Need 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 limited partnership 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 To give an oath, as to administer the oath of office to the president at the inauguration. To direct the transactions of business or government. Immigration laws are administered largely by the Immigration and Naturalization Service. 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 $4.7 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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)
December 31, December 31,
2004 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 18,214 $ 15,078
Accounts receivable - affiliates 1,496 -
Accounts receivable 13,769 12
Prepaid expenses 1,056 67
------------ ------------
Total current assets 34,535 15,157
Property, plant and equipment, net 175,259 29,628
Goodwill (net of accumulated amortization
of $285) 2,305 2,305
Other long-term assets 4,686 2,422
------------ ------------
$ 216,785 $ 49,512
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Current portion of long-term debt $ 2,303 $ -
Accrued liabilities 3,144 279
Accrued hedge liability 1,956 -
Accrued producer liabilities 10,996 -
Accounts payable 2,341 242
Accounts payable - affiliates - 1,673
Distribution payable 6,467 3,073
------------ ------------
Total current liabilities 27,210 5,267
Other long-term liabilities 722 -
Long-term debt, less current portion 52,149 -
Partners' capital (deficit):
Common unitholders, 5,563,659 and
2,713,659 units Outstanding 135,759 43,551
Subordinated unitholders; 1,641,026 units
outstanding 2 354
General partner 2,261 340
Accumulated other comprehensive loss (1,318) -
------------ ------------
Total partners' capital 136,704 44,245
------------ ------------
$ 216,785 $ 49,512
============ ============
ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per unit data)
Year Ended Three Months Ended
December 31, December 31,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
Natural gas and liquids $72,109 $ - $42,061 $ -
Transportation and compression 18,800 15,651 5,456 3,835
Interest income and other 382 98 100 37
-------- -------- -------- --------
Total revenues 91,291 15,749 47,617 3,872
Costs and expenses:
Natural gas and liquids 58,707 - 34,119 -
Plant operating 2,032 - 1,101 -
Transportation and compression 2,260 2,421 552 590
General and administrative 4,643 1,661 1,742 360
Depreciation and amortization 4,471 1,770 2,339 504
Gain on arbitration
settlement, net (1,457) - (4,444) -
Interest expense 2,301 258 1,099 46
-------- -------- -------- --------
Total costs and expenses 72,957 6,110 36,507 1,500
-------- -------- -------- --------
Net income $18,334 $ 9,639 $11,110 $ 2,372
======== ======== ======== ========
Net income - limited partners $15,256 $ 8,651 $ 9,759 $ 2,040
======== ======== ======== ========
Net income - general partner $ 3,078 $ 988 $ 1,351 $ 332
======== ======== ======== ========
Basic net income per limited
partner unit $ 2.60 $ 2.17 $ 1.59 $ 0.47
======== ======== ======== ========
Weighted average limited partner
units outstanding - basic 5,866 3,981 7,205 4,355
======== ======== ======== ========
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.
Year Ended Three Months Ended
December 31, December 31,
------------------ -------------------
2004 2003 2004 2003
--------- -------- --------- ---------
Average daily throughput
volumes in mcf
(Mid-Continent) 56,441 - 57,600 -
Average daily throughput
volumes in mcf
(Appalachia) 53,343 52,472 55,125 50,092
--------- -------- --------- ---------
Total average daily
throughput volumes in mcf 109,784 52,474 112,725 50,092
========= ======== ========= =========
Average gross margin rate per
mcf (Mid-Continent) $ 1.41 $ - $ 1.50 $ -
========= ======== ========= =========
Average transportation rate per
mcf (Appalachia) $ .96 $ .82 $ 1.08 $ 0.83
========= ======== ========= =========
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