SOURCE: Atlas Pipeline Holdings, L.P.

September 11, 2006 22:59 ET

Atlas Pipeline Holdings, L.P. Announces Updates to Its Hedge Positions for Atlas Pipeline Partners, L.P.

PHILADELPHIA, PA -- (MARKET WIRE) -- September 11, 2006 -- Atlas Pipeline Holdings, L.P. (NYSE: AHD) ("Atlas Holdings"), who owns 100% of the general partner and 12.6% of the common units of Atlas Pipeline Partners, L.P. (NYSE: APL) (the "Partnership"), reported today an update to the Partnership's hedge position for natural gas, natural gas liquids ("NGLs") and condensate that it owns and generates in its Mid-Continent processing operations. These new hedging contracts cover future production for the remainder of 2006 through the end of 2009. A summary of the Partnership's current hedge position is included in the attached schedule.

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, northern Texas and the Texas panhandle, the Partnership owns and operates approximately 2,565 miles of intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. The Partnership also operates two gas processing plants and a treating facility in Velma, Elk City and Prentiss, Oklahoma where natural gas liquids and impurities are removed. In Appalachia, it owns and operates approximately 1,500 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio. For more information, visit our website at www.atlaspipelinepartners.com or contact bbegley@atlaspipelinepartners.com.

Atlas Pipeline Holdings, L.P. is a limited partnership formed to own and control Atlas Pipeline Partners GP, LLC, the general partner of Atlas Pipeline Partners, L.P., through which it will own a 2% general partner interest in Atlas Pipeline Partners, L.P., all the incentive distribution rights in Atlas Pipeline Partners, L.P. and 1,641,026 common units of Atlas Pipeline Partners, L.P.

The listing requirements of the New York Stock Exchange require that Atlas Pipeline Holdings, L.P. disclose that additional information is available upon which the New York Stock Exchange relied to list the Company, and is included in Atlas Pipeline Holdings' listing application. Such information is available to the public upon request.

Atlas America, Inc. (NASDAQ: ATLS) is an energy company engaged in the development and production of natural gas in the Appalachian Basin, as well as the transmission and production of natural gas in Appalachia and the Mid-Continent Region through its majority ownership interest in Atlas Pipeline Holdings, L.P., For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at bbegley@atlasamerica.com.

Statements made in this release include forward-looking statements, 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 conditions and the price of gas in the Appalachian and Mid-Continent areas, actual versus projected volumetric production from wells connected to the Partnership's gas-gathering pipeline system, and the cost of supplies and services in the energy industry.

       Atlas Pipeline Partners, L.P.
       Current Mid-Continent Hedge Position as of September 11, 2006


Natural Gas Liquids Sales
   Production
     Period                                     Average
Ended December 31,           Volume           Fixed Price
                            (gallons)         (per gallon)
      2006                 31,122,000               0.76
      2007                 84,924,000               0.85
      2008                 33,012,000               0.70
      2009                  8,568,000               0.75

Crude Oil Sales Options (associated with NGL volume)
   Production                    Associated    Average
     Period          Crude          NGL         Crude
Ended December 31,   Volume        Volume    Fixed Price
                    (barrels)    (gallons)   (per barrel)
      2006                 -            -          0.00     Puts purchased
      2006                 -            -          0.00     Calls sold
      2007                 -            -          0.00     Puts purchased
      2007                 -            -          0.00     Calls sold
      2008           720,000   40,219,000         60.00     Puts purchased
      2008           720,000   40,219,000         84.00     Calls sold
      2009           720,000   40,219,000         60.00     Puts purchased
      2009           720,000   40,219,000         81.00     Calls sold

Natural Gas Sales
   Production
     Period                         Average
Ended December 31,   Volume       Fixed Price
                    (MMBTU)       (per MMBTU)
      2006           600,000           7.02
      2007         1,080,000           7.26
      2008           240,000           7.27

Natural Gas Basis Sales
   Production
     Period                         Average
Ended December 31,   Volume       Fixed Price
                    (MMBTU)       (per MMBTU)
      2006           600,000          (0.53)
      2007         1,080,000          (0.54)
      2008           240,000          (0.56)

Natural Gas Purchases
   Production
     Period                         Average
Ended December 31,   Volume       Fixed Price
                    (MMBTU)       (per MMBTU)
      2006         2,160,000           7.80
      2007         6,060,000           8.93     *
      2008         3,336,000           8.87     **
      2009         2,400,000           8.45

Natural Gas Basis Purchases
   Production
     Period                         Average
Ended December 31,   Volume       Fixed Price
                    (MMBTU)       (per MMBTU)
      2006         2,160,000          (0.78)
      2007         6,060,000          (0.89)
      2008         3,336,000          (1.04)
      2009         2,400,000          (0.60)

Crude Oil Sales
   Production
     Period                         Average
Ended December 31,   Volume       Fixed Price
                    (barrels)     (per barrel)
      2006            42,700          52.56
      2007            77,900          56.18
      2008            65,400          59.42
      2009            33,000          62.70

Crude Oil Sales Options
   Production
     Period                         Average
Ended December 31,   Volume       Strike Price
                    (barrels)     (per barrel)
      2006             6,600          60.00     Puts purchased
      2006             6,600          73.38     Calls sold
      2007            13,200          60.00     Puts purchased
      2007            13,200          73.38     Calls sold
      2008            17,400          60.00     Puts purchased
      2008            17,400          72.81     Calls sold
      2009            30,000          60.00     Puts purchased
      2009            30,000          71.25     Calls sold

*   Includes the Partnership's premium received from its sale of an option
    for it to sell 4,800,000 mmbtu of natural gas for the year ended
    December 31, 2007, partially offset by its premium paid from its
    purchase of an option to purchase 1,200,000 mmbtu of natural gas.
**  Includes the Partnership's premium received from its sale of an option
    for it to sell 4,800,000 mmbtu of natural gas for the year ended
    December 31, 2007.

Contact Information

  • Contact:
    Brian Begley
    Investor Relations
    1845 Walnut Street
    Philadelphia, PA 19103
    (215) 546-5005
    (215) 561-5692 (facsimile)