SOURCE: Atlas Pipeline Holdings, L.P.

February 25, 2008 22:12 ET

Atlas Pipeline Holdings, L.P. Reports Fourth Quarter and Full Year 2007 Results

PHILADELPHIA, PA--(Marketwire - February 25, 2008) - Atlas Pipeline Holdings, L.P. (NYSE: AHD) (the "Partnership"), the parent of the general partner of Atlas Pipeline Partners, L.P. (NYSE: APL) ("Atlas Pipeline") and its subsidiaries, today reported its results for the fourth quarter and full year 2007. The Partnership, which owns the 2% general partner interest, all of the incentive distribution rights, and 5.5 million common limited partnership units in Atlas Pipeline, presents its financial results consolidated with those of Atlas Pipeline. On a GAAP basis, the Partnership incurred a net loss of $13.9 million for the fourth quarter 2007 compared with net income of $3.5 million for the fourth quarter 2006. This loss was principally due to $130.2 million of non-cash derivative expense resulting from the mark-to-market adjustment of certain derivative positions that Atlas Pipeline maintains to hedge the variability in expected future cash flows attributable to changes in commodity market prices. Please see today's Atlas Pipeline press release regarding its fourth quarter and full year 2007 earnings for further information regarding its results.

On February 19, 2008, the Partnership paid a record quarterly cash distribution for the fourth quarter 2007 of $0.34 per common limited partner unit, an increase of $0.09 per unit, or 36%, from the comparable prior year period.

Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Pipeline's fourth quarter and full year 2007 results on Tuesday, February 26, 2008 at 9:00 am EST by going to the home page of Atlas Pipeline's website at www.atlaspipelinepartners.com. An audio replay of the conference call will also be available beginning at 11:00 am EST on Tuesday, February 26, 2008. To access the replay, dial 1-888-286-8010 and enter conference code 30715542.

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 5.5 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, northern and western Texas and the Texas panhandle, the Partnership owns and operates eight gas processing plants and a treating facility, as well as approximately 7,900 miles of active intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. In Appalachia, it owns and operates approximately 1,600 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 Energy Resources, LLC (NYSE: ATN) develops and produces domestic natural gas and to a lesser extent, oil. Atlas Energy is one of the largest independent energy producers in the Appalachian Basin and northern Michigan. The Company sponsors and manages tax-advantaged investment partnerships, in which it co-invests, to finance the exploration and development of the Company's acreage in the Appalachian Basin. Atlas Energy is active principally in Pennsylvania, Michigan and Tennessee. For more information, visit Atlas Energy's website at www.atlasenergyresources.com or contact investor relations at bbegley@atlasamerica.com.

Atlas America, Inc. (NASDAQ: ATLS) owns an approximate 64% limited partner interest in Atlas Pipeline Holdings, L.P. and an approximate 49% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC. For more information, please visit our website at www.atlasamerica.com, or contact Investor Relations at bbegley@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.

              ATLAS PIPELINE HOLDINGS, L.P. AND SUBSIDIARIES
                            Financial Summary
                  (in thousands, except per unit amounts)

                                 Three Months Ended        Years Ended
                                     December 31,          December 31,
                                --------------------- ---------------------
STATEMENTS OF OPERATIONS          2007        2006      2007        2006
                                ---------  ---------- ---------  ----------

 Revenue:
   Natural gas and liquids      $ 324,259  $   95,273 $ 761,118  $  391,356
   Transportation, compression,
    and other fees - affiliates     8,496       7,530    33,169      30,189
   Transportation, compression,
    and other fees - third
    parties                        15,242       9,853    48,616      30,735
   Other income (loss)           (134,443)      4,184  (174,084)     12,781
                                ---------  ---------- ---------  ----------
     Total revenue and other
      income (loss)               213,554     116,840   668,819     465,061
                                ---------  ---------- ---------  ----------

 Costs and expenses:
   Natural gas and liquids        237,885      81,722   587,524     334,299
   Plant operating                 16,514       4,716    34,667      15,722
   Transportation and
    compression                     3,607       3,114    13,484      10,753
   General and administrative       7,065       7,453    58,622      21,155
   Compensation reimbursement -
    affiliates                      3,119         336     5,939       2,319
   Depreciation and amortization   21,601       6,309    50,982      22,994
   Interest                        23,920       6,516    62,629      24,726
   Minority interest                2,564           -     3,940         118
   Minority interest in Atlas
    Pipeline Partners, L.P.       (88,839)      3,167  (133,321)     16,335
                                ---------  ---------- ---------  ----------
     Total costs and expenses     227,436     113,333   684,466     448,421
                                ---------  ---------- ---------  ----------

 Net income (loss)              $ (13,882) $    3,507 $ (15,647) $   16,640
                                =========  ========== =========  ==========

 Allocation of net income
  (loss):
   Portion applicable to owners'
    interest (period prior to
    The initial public offering
    on July 26, 2006)           $       -  $        - $       -  $   10,236
   Portion applicable to common
    limited partners' interest
    (period subsequent to the
    initial public offering on
    July 26, 2006)                (13,882)      3,507   (15,647)      6,404
                                ---------  ---------- ---------  ----------
  Net income (loss)             $ (13,882) $    3,507 $ (15,647) $   16,640
                                =========  ========== =========  ==========

 Net income (loss) attributable
  to common limited partners per
  unit:
      Basic                     $   (0.51) $     0.17 $   (0.66) $     0.30
                                =========  ========== =========  ==========
      Diluted                   $   (0.51) $     0.17 $   (0.66) $     0.30
                                =========  ========== =========  ==========

 Weighted average common limited
  partner units outstanding:
      Basic                        27,350      21,100    23,806      21,100
                                =========  ========== =========  ==========
      Diluted                      27,350      21,103    23,806      21,102
                                =========  ========== =========  ==========


                                                 December 31, December 31,
Balance Sheet Data (at period end):                  2007         2006
                                                 ------------ ------------
   Cash and cash equivalents                     $     12,129 $      2,198
   Total assets                                     2,877,514      787,134
   Total debt                                       1,254,426      324,083
   Total partners' capital (deficit)                   94,118       (7,010)

Contact Information

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