Atlas Pipeline Partners, L.P. Completes Joint Venture with Williams for the Marcellus Shale Gathering System; Atlas Pipeline'...
02 Juin 2009 - 2:31PM
Business Wire
Atlas Pipeline Partners (NYSE:APL) (�APL� or �Atlas
Pipeline�) announced that it has activated its joint venture
with Williams (NYSE:WMB) (�Williams�) pursuant to a previously
announced joint venture agreement. Atlas Pipeline and Williams have
formed Laurel Mountain Midstream, LLC (�Laurel Mountain�), which
aims to expand and develop Atlas' presence in the southwestern
Pennsylvania portion of the Marcellus Shale. APL's affiliate, Atlas
Energy Resources, LLC (NYSE:ATN), a leading producer and driller of
Marcellus wells, will be the anchor tenant on the system.
Atlas Pipeline will receive approximately $90 million in cash, a
preferred equity right to proceeds under a $25.5 million obligation
(the �Obligation�) from Williams, and a 49% equity interest in
Laurel Mountain. The Obligation amortizes in equal principal
installments over a three-year period and the right to receive
accrued principal and interest can be converted at APL's option
into an equivalent sum to pay capital expenditures Atlas Pipeline
would otherwise be required to fund under the joint venture
agreement.
As previously announced, APL has entered into an amendment to
its Revolving Credit and Term Loan Agreement that governs a $380
million revolving credit facility and a $463 million term loan
facility. Through this amendment, APL gained increased operating
liquidity and added financial flexibility from relaxed EBITDA and
total debt covenants. Further details regarding the APL amended
credit agreement have been filed with the SEC on June 1, 2009,
under a Form 8-K submission.
Yesterday, June 1, 2009, Atlas Pipeline Holdings, L.P.
(NYSE:AHD) (�AHD�), the parent of the general partner of APL,
substantially reduced its outstanding indebtedness by repaying $30
million on its credit facility. The remaining balance of
approximately $16 million will be paid down over the next year in
equal quarterly installments. In effectuating the repayment, AHD
used proceeds from a $15 million issuance of preferred units to APL
(AHD's $15 Million issuance of Preferred Stock to APL remains
outstanding). Atlas America, Inc. (NASDAQ:ATLS) (�Atlas America�),
which owns 64% of the common units as well as 100% of the general
partner of AHD, also loaned $15 million to AHD and has guaranteed
payment of the remaining balance of $16 million. Atlas America's
commitments are collateralized by AHD's assets, including its
ownership of 5.8 million common units, a 2% general partner
interest, and all the incentive distribution rights of Atlas
Pipeline, subject only to full repayment of the final $16 million
of the AHD bank loan which repayment Atlas America is
guaranteeing.
Further details regarding this amendment to the AHD credit
agreement will be included in a Form 8-K submission to be filed
today.
Atlas Pipeline Holdings, L.P. is a limited partnership
which owns and operates the general partner of Atlas Pipeline
Partners, L.P., through which it owns a 2% general partner
interest, all the incentive distribution rights and approximately
5.8 million common units of Atlas Pipeline Partners.
Atlas Pipeline Partners, L.P. is active in the
transmission, gathering and processing segments of the midstream
natural gas industry. In the Mid-Continent region of Oklahoma,
Arkansas, southern Kansas, northern and western Texas and the Texas
panhandle, APL owns and operates eight active gas processing plants
and a treating facility, as well as approximately 7,900 miles of
active intrastate gas gathering pipeline. In Appalachia, APL is a
49% joint venture partner with Williams in Laurel Mountain
Midstream, LLC, which manages the natural gas gathering system in
that region, namely from the Marcellus Shale in southwestern
Pennsylvania. For more information, visit the Partnership�s website
at www.atlaspipelinepartners.com or contact
investorrelations@atlaspipelinepartners.com.
Atlas America, Inc. owns an approximate 48% common unit
interest and all of the Class A and management incentive interests
in Atlas Energy Resources, LLC (NYSE:ATN). Atlas America, Inc. also
owns 1.1 million common units in Atlas Pipeline Partners, L.P. and
a 64% interest in Atlas Pipeline Holdings, L.P. For more
information, please visit our website at www.atlasamerica.com, or
contact Investor Relations at
InvestorRelations@atlasamerica.com.
Certain matters discussed within this press release are
forward-looking statements. Although Atlas Pipeline
Holdings, 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.
Factors that could cause actual results to differ materially
from expectations include financial performance, inability of Atlas
Pipeline Partners to successfully integrate the operations at the
acquired systems, regulatory changes, changes in local or national
economic conditions and other risks detailed from time to time in
Atlas Holdings' 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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