SOURCE: Atlas Pipeline Partners, L.P.

February 26, 2007 22:03 ET

Atlas Pipeline Partners, L.P. Reports Fourth Quarter and Record Full-Year 2006 Results

Partnership Reports Record Full-Year Revenues and Earnings; Announces Expansion Projects in Mid-Continent Region

PHILADELPHIA, PA -- (MARKET WIRE) -- February 26, 2007 -- Atlas Pipeline Partners, L.P. (NYSE: APL) (the "Partnership") today reported record earnings before interest, income taxes, depreciation and amortization ("EBITDA"), a non-GAAP measure, of $80.0 million for the full year 2006, compared with $53.1 million in 2005, an increase of $26.9 million, or 51%, from the prior year. Net income for the full year 2006 was $33.7 million, an increase of 31% over the prior year. Revenues rose to a record level of $464.7 million, an increase of $93.2 million, or 25%, compared with the prior year. The Partnership also achieved record system wide volumes of approximately 705.0 million cubic feet per day ("MMcfd") for the fourth quarter 2006 compared with 639.5 MMcfd for the prior year quarter, an increase of 10%.

EBITDA for the fourth quarter 2006 was $20.2 million compared with $21.3 million for the prior year fourth quarter, a decrease of $1.1 million. Net income for the fourth quarter 2006 was $7.5 million, or $0.22 per diluted common limited partner unit, compared with $10.9 million for the fourth quarter 2005, or $0.69 per diluted common limited partner unit. Fourth quarter results were adversely affected by unfavorable movements in commodity prices during the quarter partially offset by increased volumes, a third party's delay in installing the natural gas liquids transportation pipeline from the new Sweetwater processing facility resulting in minimal contributions to the quarter from Sweetwater, and a one-time charge of $1.1 million for employee expense relating to our parent company's shift from a September 30 fiscal year to a calendar year financial reporting period.

The Partnership has paid a quarterly cash distribution for the fourth quarter 2006 of $0.86 per common limited partner unit. This brings distributions declared per common limited partner unit for the year ended December 31, 2006 to $3.40, an increase of $0.24, or 8%, from the prior year.

Due to the continued growth in transmission and gathering volumes, the Partnership has begun efforts on several organic growth projects to strengthen its asset base in the Mid-Continent region. First, the Partnership will commence construction of an additional 60 MMcfd expansion of its 120 MMcfd Sweetwater processing facility. Concurrent with this expansion, the Partnership will significantly expand its gas gathering system in western Oklahoma and the Texas Panhandle. The Partnership expects the expansion of the processing facility and gathering systems to be substantially completed by the first half of 2008. Additionally, the Partnership will increase compression and loop certain existing pipelines on its NOARK interstate pipeline system ("NOARK"), the combination of which will increase throughput capacity to approximately 450 MMcfd. This expansion will consist of 6,000 horsepower of mainline compression and 15 miles of looped 12 inch high pressure pipeline. The targeted completion timeframe is early 2008. The Partnership also continues to pursue the expansion and extension of the NOARK pipeline, as previously disclosed, and will pursue this project aggressively.

Finally, in reviewing its financial results for the year ended December 31, 2006, the Partnership determined that previously reported net income for the third quarter of 2006 and nine months ended September 30, 2006 should be increased by $2.3 million. This increase was due to the recognition of a gain with respect to certain financial hedge instruments under Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities." This adjustment has been reflected within the financial information presented. The Partnership will file an amendment to its Form 10-Q for September 30, 2006 to reflect this adjustment prior to the filing of its Form 10-K for December 31, 2006.

Segment Analysis

Mid-Continent

The Mid-Continent segment recognized total revenue of $109.2 million for the fourth quarter 2006, a decrease of $19.1 million from the fourth quarter 2005. This decrease was principally attributable to a decrease in commodity prices. For the Elk City/Sweetwater system, which includes volumetric data from the recently constructed Sweetwater gas plant, gross natural gas gathered volume for the fourth quarter 2006 averaged 295.2 MMcfd, an 11% increase from the fourth quarter 2005. The Elk City/Sweetwater system connected 10 new wells to its gathering system during the fourth quarter 2006 and 64 new wells for the year ended December 31, 2006. For the NOARK system, average Ozark Gas Transmission throughput volume was 288.9 MMcfd during the fourth quarter 2006, a 13% increase from the fourth quarter 2005. The Velma system's processed natural gas volume averaged 55.9 MMcfd for the fourth quarter 2006, a slight decrease of 1% from the prior year quarter of 56.5 MMcfd. The Velma system connected 7 new wells to its gas gathering system during the fourth quarter 2006 and 60 new wells for the year ended December 31, 2006. Also, the Partnership recorded a one-time $2.9 million gain from an insurance claim settlement related to fire damage sustained during 2006 at a Velma compressor station.

The Mid-Continent segment recognized total revenue of $433.8 million for the year ended December 31, 2006, an increase of $87.1 million from the prior year. This increase was principally attributable to a full year of revenue contribution from the acquisitions of the NOARK and Elk City systems. For the Elk City/Sweetwater system, gross natural gas gathered volume for calendar year 2006 averaged 277.1 MMcfd, an 11% increase from the prior year. For the NOARK system, average Ozark Gas Transmission throughput volume was 249.6 MMcfd for calendar year 2006. These favorable variances for the year were partially offset by a decrease in Velma system revenue due to a decrease in commodity prices and lower processed volume. Velma's processed natural gas volume averaged 58.1 MMcfd for calendar year 2006, a decrease of 7% from the prior year amount of 62.5 MMcfd. The decrease in Velma system processed volume between periods was principally due to the expiration of a short-term low-margin gathering and processing agreement. The impact of Velma's processed volume decline on total revenue was partially offset by an increase in the recovery percentage of natural gas liquids at the Velma plant compared with the prior year.

Appalachia

Total revenue for the Appalachia system was $7.6 million for the fourth quarter 2006, a 5% decrease from $8.0 million for the fourth quarter 2005, due principally to a decrease in realized natural gas prices between periods, partially offset by higher throughput volume. Throughput volume increased to 63.1 MMcfd for the fourth quarter 2006 compared with 56.4 MMcfd for the fourth quarter 2005 due to new wells connected to the Appalachia gathering system. Average transportation rate per thousand cubic feet ("mcf") was $1.30 for the fourth quarter 2006, a 15% decrease from $1.53 per mcf for the prior year fourth quarter. During the fourth quarter 2006, 190 new wells were connected to the Appalachia gathering system compared with 91 wells connected during the comparable prior year quarter. Overall, 711 new wells were connected to the Appalachia gathering system for the year ended December 31, 2006 as compared with 451 wells connected for the prior year. Appalachia segment profit was $4.4 million for the fourth quarter 2006, or 29% of total segment operating profit for the period, compared with $5.6 million, or 33% of total segment operating profit for the prior year fourth quarter.

Total revenue for the Appalachia system increased to $30.9 million for the year ended December 31, 2006, a 24% increase from $24.8 million for the prior year, due principally to higher throughput volume and an increase in realized natural gas prices between periods. Throughput volume increased to 61.9 MMcfd for calendar year 2006 compared with 55.2 MMcfd for calendar year 2005 due to new wells connected to the Appalachia gathering system. Average transportation rate per mcf was $1.34 for 2006, an 11% increase from $1.21 per mcf for the prior year.

Corporate and Other

General and administrative expense, including amounts reimbursed to affiliates, increased $2.1 million to $6.6 million for the fourth quarter 2006 from $4.5 million for the fourth quarter 2005. This increase was primarily related to a one-time charge of $1.1 million for employee expense relating to our parent company's shift from a September 30 fiscal year to a calendar year financial reporting period, an increase in non-cash compensation expense related to vesting of phantom and common unit awards and higher costs associated with managing the Partnership, including management of the NOARK acquisition. Depreciation and amortization increased $0.9 million to $6.3 million for the fourth quarter 2006 due primarily to the depreciation and amortization related to the NOARK assets acquired during 2005 and 2006 and the current year expansion capital expenditures.

Interest expense increased to $6.4 million for the fourth quarter 2006, an increase of $0.7 million from the prior year fourth quarter. This increase was primarily related to interest associated with the Partnership's May 2006 issuance of $35.0 million principal amount of 10-year senior unsecured notes and a full quarter of interest expense for the Partnership's $250.0 million principal amount of senior unsecured notes, which were issued in December 2005, partially offset by a decrease in interest associated with borrowings under the credit facility. At December 31, 2006, the Partnership had $324.1 million of total debt, including the $285.0 million of senior unsecured notes and $38.0 million of outstanding borrowings under its $225.0 million credit facility.

Interested parties are invited to access the live webcast of an investor call with management regarding the Partnership's fourth quarter results on Tuesday morning, February 27, 2007 at 9:00 am ET by going to the home page of the Partnership's website at www.atlaspipelinepartners.com. An audio replay of the conference call will also be available beginning at 11:00 am ET on Tuesday, February 27, 2007 until 11:59 pm on Tuesday, March 27, 2007. To access the replay, dial 1-888-286-8010 and enter conference code 34068310.

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 1,900 miles of active intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. The Partnership also operates three gas processing plants and a treating facility in Velma, Elk City, Sweetwater and Prentiss, Oklahoma where natural gas liquids and impurities are removed. 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 Pipeline Holdings, L.P. (NYSE: AHD) is the parent company of Atlas Pipeline Partners, L.P.'s general partner and owner of 1,641,026 limited partner units of Atlas Pipeline Partners, L.P. For more information, please contact investor relations at bbegley@atlasamerica.com.

Atlas America, Inc. (NASDAQ: ATLS) owns an 80% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC. Atlas America also owns an 83% interest in Atlas Pipeline Holdings, L.P.

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. AND SUBSIDIARIES
                           Financial Summary
                (in thousands, except per unit amounts)



                        Three Months Ended              Year Ended
INCOME STATEMENT           December 31,                December 31,
                    --------------------------  --------------------------
                      2006(1)         2005        2006(1)         2005
                    ------------  ------------- ------------  -------------
Revenue:
  Natural gas and
   liquids          $     96,388  $     122,029 $    397,082  $     340,297
  Transportation
   and compression
   - affiliates            7,530          7,899       30,189         24,346
  Transportation
   and compression
   - third parties         9,853          5,909       30,735          5,963
  Interest income
   and other               3,064            542        6,686            894
                    ------------  ------------- ------------  -------------
    Total revenue
     and other
     income              116,835        136,379      464,692        371,500
                    ------------  ------------- ------------  -------------

Costs and expenses:
  Natural gas and
   liquids                81,722        103,602      334,299        288,180
  Plant operating          4,716          3,315       15,722         10,557
  Transportation
   and compression         3,609          1,884       12,013          4,053
  General and
   administrative          6,290          4,062       18,990         11,825
  Compensation
   reimbursement -
   affiliates                336            418        2,319          1,783
  Depreciation and
   amortization            6,309          5,459       22,994         13,954
  Interest                 6,381          5,697       24,572         14,175
  Minority interest
   in NOARK                    -          1,083          118          1,083
  Other                        -              -            -            138
                    ------------  ------------- ------------  -------------
    Total costs and
     expenses            109,363        125,520      431,027        345,748
                    ------------  ------------- ------------  -------------

Net income                 7,472         10,859       33,665         25,752
Preferred unit
 imputed dividend
 cost                       (636)             -       (1,898)             -
                    ------------  ------------- ------------  -------------
Net income
 attributable to
 common limited
 partners
 and the general
 partner            $      6,836  $      10,859 $     31,767  $      25,752
                    ============  ============= ============  =============

Allocation of net
 income attributable
 to common
 limited partners
 and the general
 partner:
  Common limited
   partners'
   interest         $      2,894  $       7,352 $     16,558  $      16,355
  General partner's
   interest                3,942          3,507       15,209          9,397
                    ------------  ------------- ------------  -------------
    Net income
     attributable
     to common
     limited
     partners and
     the general
     partner        $      6,836  $      10,859 $     31,767  $      25,752
                    ============  ============= ============  =============

Net income
 attributable to
 common limited
 partners per
 unit:
    Basic           $       0.22  $        0.70 $       1.29  $        1.86
                    ============  ============= ============  =============
    Diluted         $       0.22  $        0.69 $       1.27  $        1.84
                    ============  ============= ============  =============

Weighted average
 common limited
 partner units
 outstanding:
    Basic                 13,080         10,535       12,884          8,808
                    ============  ============= ============  =============
    Diluted               13,284         10,638       13,053          8,872
                    ============  ============= ============  =============

Capital Expenditure
 data:
  Maintenance
   capital
   expenditures     $      1,728  $         812 $      4,649  $       1,922
  Expansion capital
   expenditures           20,360         17,167       79,182         50,576
                    ------------  ------------- ------------  -------------
    Total           $     22,088  $      17,979 $     83,831  $      52,498
                    ============  ============= ============  =============

                            December 31,
                    ---------------------------
Balance Sheet data
 (at period end):       2006           2005
                    ------------  -------------
    Cash and cash
     equivalents    $      1,795  $      34,237
    Total assets         786,884        742,726
    Total debt           324,083        298,625
    Total partners'
     capital             379,134        329,510


(1) Previously reported net income for the third quarter of 2006 and nine
months ended September 30, 2006 has been increased by $2.3 million.  This
adjustment has been reflected within the financial information presented.
The Partnership will file an amendment to its Form 10-Q for September 30,
2006 to reflect this adjustment prior to the filing of its Form 10-K for
December 31, 2006.


             ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
                           Segment Information
                              (in thousands)


                                 Three Months Ended        Year Ended
                                    December 31,          December 31,
                                --------------------  --------------------
                                 2006(1)     2005      2006(1)     2005
                                ---------  ---------  ---------  ---------
Mid-Continent
 Revenue:
  Natural gas and liquids       $  96,388  $ 122,029  $ 397,082  $ 340,297
  Transportation and
   compression                      9,836      5,880     30,653      5,880
  Interest income and other         2,980        436      6,078        513
                                ---------  ---------  ---------  ---------
    Total revenue and other
     income                       109,204    128,345    433,813    346,690
                                ---------  ---------  ---------  ---------

 Costs and expenses:
  Natural gas and liquids          81,722    103,602    334,299    288,180
  Plant operating                   4,716      3,315     15,722     10,557
  Transportation and
   compression                      2,273        952      7,067        952
  General and administrative        4,788      3,068     13,776      7,375
  Minority interest in NOARK            -      1,083        118      1,083
  Depreciation and amortization     5,288      4,710     19,322     11,307
                                ---------  ---------  ---------  ---------
    Total costs and expenses       98,787    116,730    390,304    319,454
                                ---------  ---------  ---------  ---------
  Segment profit                $  10,417  $  11,615  $  43,509  $  27,236
                                =========  =========  =========  =========

Appalachia
 Revenue:
  Transportation and
   compression - affiliates     $   7,530  $   7,899  $  30,189  $  24,346
  Transportation and
   compression - third parties         17         29         82         83
  Interest income and other            84        106        608        381
                                ---------  ---------  ---------  ---------
    Total revenue and other
     income                         7,631      8,034     30,879     24,810
                                ---------  ---------  ---------  ---------

 Costs and expenses:
  Transportation and
   compression                      1,336        932      4,946      3,101
  General and administrative          919        707      3,767      3,117
  Depreciation and amortization     1,021        749      3,672      2,647
                                ---------  ---------  ---------  ---------
    Total costs and expenses        3,276      2,388     12,385      8,865
                                ---------  ---------  ---------  ---------
  Segment profit                $   4,355  $   5,646  $  18,494  $  15,945
                                =========  =========  =========  =========

Reconciliation of segment
 profit to net income
 Segment profit:
  Mid-Continent                 $  10,417  $  11,615  $  43,509  $  27,236
  Appalachia                        4,355      5,646     18,494     15,945
                                ---------  ---------  ---------  ---------
    Total segment profit           14,772     17,261     62,003     43,181
  Corporate general and
   administrative expenses           (919)      (705)    (3,766)    (3,116)
  Interest expense                 (6,381)    (5,697)   (24,572)   (14,175)
  Other                                 -          -          -       (138)
                                ---------  ---------  ---------  ---------
  Net income                    $   7,472  $  10,859  $  33,665  $  25,752
                                =========  =========  =========  =========

(1) Previously reported net income for the third quarter of 2006 and nine
months ended September 30, 2006 has been increased by $2.3 million.  This
adjustment has been reflected within the financial information presented.
The Partnership will file an amendment to its Form 10-Q for September 30,
2006 to reflect this adjustment prior to the filing of its Form 10-K for
December 31, 2006.



                 ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
                                  (in thousands)


                                    Three Months Ended      Year Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                     2006(1)    2005     2006(1)    2005
                                    --------  --------  --------  --------
Reconciliation of net income to
 adjusted net income:
  Net income                        $  7,472  $ 10,859  $ 33,665  $ 25,752
  Effect of prior period items (2)         -      (902)    1,090    (1,090)
                                    --------  --------  --------  --------
    Adjusted net income             $  7,472  $  9,957  $ 34,755  $ 24,662
                                    ========  ========  ========  ========

Reconciliation of net income to
 non-GAAP measures(3):
  Net income                        $  7,472  $ 10,859  $ 33,665  $ 25,752
  Depreciation and amortization        6,309     5,459    22,994    13,954
  Minority interest share of
   depreciation and amortization
   and interest expense for NOARK          -      (735)   (1,200)     (735)
  Interest expense                     6,381     5,697    24,572    14,175
                                    --------  --------  --------  --------
    EBITDA                            20,162    21,280    80,031    53,146

  Effect of prior period items (2)         -      (902)    1,090    (1,090)
                                    --------  --------  --------  --------
    Adjusted EBITDA                   20,162    20,378    81,121    52,056

  Interest expense                    (6,381)   (5,697)  (24,572)  (14,175)
  Minority interest share of
   interest expense for NOARK              -       490       938       490
  Non-cash compensation expense        2,190     1,863     6,315     4,672
  Amortization of deferred
   financing costs (included
   within interest expense)              545       399     2,298     2,140
  Maintenance capital expenditures    (1,728)     (812)   (4,649)   (1,922)
                                    --------  --------  --------  --------
    Distributable cash flow         $ 14,788  $ 16,621  $ 61,451  $ 43,261
                                    ========  ========  ========  ========

(1) In reviewing its financial results for the year ended December 31,
2006, the Partnership determined that previously reported net income for
the third quarter of 2006 and nine months ended September 30, 2006 should
be increased by $2.3 million.  This increase was due to the recognition of
a gain with respect to certain financial hedge instruments under Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities."  This adjustment has been reflected
within the financial information presented.  The Partnership will file an
amendment to its Form 10-Q for September 30, 2006 to reflect this
adjustment prior to the filing of its Form 10-K for December 31, 2006.

(2) During June 2006, the Partnership identified measurement reporting
inaccuracies on three newly installed pipeline meters.  To adjust for such
inaccuracies, which relate to natural gas volume gathered during the third
and fourth quarters of 2005 and first quarter of 2006, the Partnership
recorded an adjustment of $1.2 million during the second quarter of 2006 to
increase natural gas and liquids cost of goods sold.  If the $1.2 million
adjustment had been recorded when the inaccuracies arose, reported net
income would have been reduced by approximately 2.7%, 8.3%, and 1.4% for
the third quarter of 2005, fourth quarter of 2005, and first quarter of
2006, respectively.  Management of the Partnership believes that the impact
of these adjustments is immaterial to its current and prior financial
statements.

(3) EBITDA and distributable cash flow are non-GAAP (generally accepted
accounting principles) financial measures under the rules of the Securities
and Exchange Commission.  Management of the Partnership believes that
EBITDA and distributable cash flow provide additional information for
evaluating the Partnership's ability to make distributions to its
unitholders and the general partner, among other things.  These measures
are widely used by commercial banks, investment bankers, rating agencies
and investors in evaluating performance relative to peers and pre-set
performance standards.  EBITDA is also a financial measurement that, with
certain negotiated adjustments, is utilized within the Partnership's
financial covenants under its credit facility.  EBITDA and distributable
cash flow are not measures of financial performance under GAAP and,
accordingly, should not be considered as a substitute for net income,
operating income, or cash flows from operating activities in accordance
with GAAP.


              ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
                          Operating Highlights


                                    Three Months Ended      Year Ended
                                       December 31,        December 31,
                                    ------------------- -------------------
                                      2006      2005      2006      2005
                                    --------- --------- --------- ---------
Mid-Continent - Velma System
  Natural Gas
     Gross natural gas gathered -
      mcfd                             57,835    61,093    60,682    67,075
     Gross natural gas processed -
      mcfd                             55,909    56,475    58,132    62,538
     Gross residue natural gas -
      mcfd                             43,758    46,160    45,466    50,880
  Natural Gas Liquids
     Gross NGL sales - bpd              6,087     6,141     6,423     6,643
  Condensate
     Gross condensate sales - bpd         143       219       193       256

Mid-Continent - Elk City/Sweetwater
 System
  Natural Gas
     Gross natural gas gathered -
      mcfd                            295,181   266,280   277,063   250,717
     Gross natural gas processed -
      mcfd                            213,033   124,196   154,047   119,324
     Gross residue natural gas -
      mcfd                            198,263   113,935   140,969   109,553
  Natural Gas Liquids
     Gross NGL sales - bpd              7,539     5,277     6,400     5,303
  Condensate
     Gross condensate sales - bpd         184       137       140       127

Mid-Continent - NOARK System
     Ozark Gas Transmission
      throughput - mcfd               288,897   255,777   249,581   255,777

Appalachia
     Throughput - mcfd                 63,134    56,391    61,892    55,204
     Average transportation rate
      per mcf                       $    1.30 $    1.53 $    1.34 $    1.21

---------------------------
Mcf – thousand cubic feet
Mcfd – thousand cubic feet per day
Bpd – barrels per day



              ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
              Current Mid-Continent Segment Hedge Positions
                         (as of February 26, 2007)

Natural Gas Liquids Sales
  Production Period                                Average
  Ended December 31,          Volumes            Fixed Price
-------------------------------------------------------------
                              (gallons)          (per gallon)
      2007                   91,224,000        $       0.879
      2008                   33,012,000                0.697
      2009                    8,568,000                0.746


Crude Oil Sales Options (associated with NGL volume)
                                                Average
                                                Crude
  Production Period    Crude    Associated      Strike      Option Type
  Ended December 31,   Volume   NGL Volume      Price
--------------------------------------------------------------------------
                     (barrels)   (gallons)   (per barrel)
      2008            693,600   38,744,000    $    60.00    Puts purchased
      2008            693,600   38,744,000         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,          Volumes           Fixed Price
-------------------------------------------------------------
                             (MMBTU)(1)        (per MMBTU)(1)
      2007                   1,080,000         $       7.255
      2008                     240,000                 7.270
      2009                     480,000                 8.000


Natural Gas Basis Sales
  Production Period                               Average
  Ended December 31,          Volumes           Fixed Price
-------------------------------------------------------------
                             (MMBTU)(1)        (per MMBTU)(1)
      2007                   1,080,000        $       (0.535)
      2008                     240,000                (0.555)
      2009                     480,000                (0.540)


Natural Gas Purchases
  Production Period                               Average
  Ended December 31,          Volumes           Fixed Price
-------------------------------------------------------------
                             (MMBTU)(1)        (per MMBTU)(1)
      2007                   6,960,000        $     9.115 (2)
      2008                   4,056,000              8.831 (3)
      2009                   2,880,000              8.343


Natural Gas Basis Purchases
  Production Period                               Average
  Ended December 31,          Volumes           Fixed Price
-------------------------------------------------------------
                             (MMBTU)(1)        (per MMBTU)(1)
      2007                   6,960,000        $       (0.903)
      2008                   4,056,000                (1.028)
      2009                   2,880,000                (0.592)


    ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
      Current Mid-Continent Segment Hedge Positions
                (as of February 26, 2007)

Crude Oil Sales
  Production Period                               Average
  Ended December 31,          Volumes           Fixed Price
-------------------------------------------------------------
                             (barrels)           (per barrel)
      2007                     77,900         $       56.175
      2008                     65,400                 59.424
      2009                     33,000                 62.700

Crude Oil Sales Options
  Production Period                       Average
  Ended December 31,       Volumes      Strike Price    Option Type
----------------------------------------------------------------------
                          (barrels)     (per barrel)
      2007                 13,200          60.000       Puts purchased
      2007                 13,200          73.380       Calls sold
      2008                 43,800          60.000       Puts purchased
      2008                 43,800          79.545       Calls sold
      2009                 30,000          60.000       Puts purchased
      2009                 30,000          71.250       Calls sold


(1) MMBTU represents million British Thermal Units.

(2) Includes the Partnership’s premium received from its sale of an option
for it to sell 4,800,000 mmbtu of natural gas at an average price of
$15.25 per mmbtu 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 at $26.00 per mmbtu.

(3) Includes the Partnership’s premium received from its sale of an option
for it to sell 936,000 mmbtu of natural gas for the year ended December
31, 2008 at $15.50 per mmbtu.

Contact Information

  • Contact:
    Brian J. Begley
    Vice President, Investor Relations
    1845 Walnut Street
    Philadelphia, PA 19103
    (215) 546-5005
    (215) 546-4785 (facsimile)