SOURCE: Atlas Pipeline Partners, L.P.

February 25, 2008 22:09 ET

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

PHILADELPHIA, PA--(Marketwire - February 25, 2008) - Atlas Pipeline Partners, L.P. (NYSE: APL) (the "Partnership") today reported record financial results for the fourth quarter and full year 2007.

The results of the full year 2007 include:

--  Adjusted earnings before interest, income taxes, depreciation and
    amortization ("Adjusted EBITDA"), a non-GAAP (generally accepted accounting
    principles) measure, of $185.8 million compared with $86.3 million for the
    full year 2006, an increase of $99.5 million or approximately 115%. A
    reconciliation from net income to adjusted EBITDA is provided in the
    financial tables of this release;
    
--  Distributable cash flow totaled $122.5 million for the full year 2007
    compared with $60.3 million for the prior year, an increase of $62.2
    million or approximately 103%;
    
--  Adjusted net income, a non-GAAP measure, was $61.4 million for the
    full year 2007 compared to $37.7 million for the prior year, an increase of
    $23.7 million, or approximately 63%. A reconciliation from net income to
    adjusted net income is provided in the financial tables of this release. On
    a GAAP basis, the Partnership recognized a net loss of $144.3 million for
    the full year 2007, largely related to $169.4 million of non-cash
    derivative expense resulting from the mark-to-market adjustment of certain
    derivative positions the Partnership maintains for future periods.  The
    Partnership maintains derivative positions solely to hedge the variability
    in expected future cash flows attributable to changes in commodity market
    prices;
    
--  System-wide volumes were approximately 1.2 billion cubic feet per day
    ("bcfd") for the full year 2007 compared with 0.6 bcfd for the prior year,
    an increase of approximately 100%.
    

The results of the fourth quarter 2007 include:

--  Adjusted EBITDA of $75.3 million for the fourth quarter 2007 compared
    with $22.1 million for the prior year fourth quarter, an increase of $53.2
    million or approximately 241%;
    
--  Distributable cash flow excluding maintenance capital expenditures was
    $52.6 million for the fourth quarter 2007 compared with $16.3 million for
    the prior year fourth quarter, an increase of $36.3 million or 223%.
    Distributable cash flow including maintenance capital expenditures totaled
    $47.3 million for the fourth quarter 2007 compared to $14.6 million for the
    comparable prior year quarter, an increase of $32.7 million or
    approximately 224%. The Partnership's distribution coverage ratio for the
    fourth quarter 2007 was approximately 1.2x. The quarter-over-quarter
    results were favorably impacted by contributions from the Chaney Dell and
    Midkiff/Benedum systems, which the Partnership acquired in July 2007, and
    higher volumes on all of its other systems, partially offset by higher
    maintenance capital expenditures than expected on a normalized basis;
    
--  Adjusted net income was $28.9 million for the fourth quarter 2007
    compared to $9.5 million for the prior year comparable period, an increase
    of $19.4 million, or approximately 204%.
    

Recent Events

--  On February 22, 2008, the Partnership purchased a gas gathering
    system and related facilities located in northeastern Tennessee for $9.1
    million. The system serves several counties northwest of Knoxville, an area
    of active drilling and production including that of the Partnership's
    affiliate, Atlas Energy Resources, LLC (NYSE: ATN) ("Atlas Energy"). In
    conjunction with the acquisition of the gathering system, the Partnership
    has also announced that it intends to construct a new 20 Mmcf per day
    cryogenic processing facility that will service natural gas produced in
    this northeastern Tennessee area. The new processing facility will be vital
    given the higher natural gas liquid content of the gas produced in the
    area, tighter quality standards being imposed by inter-state pipelines
    where the gas is sold and growing drilling activity by Atlas Energy and
    other producers.
    
--  On February 14, 2008, the Partnership paid a record quarterly cash
    distribution for the fourth quarter 2007 of $0.93 per common limited
    partner unit, an increase of $0.07 per unit or 8.1% from the comparable
    prior year period. Total distributions declared for the fourth quarter 2007
    of $41.1 million represent a 166% increase from the prior year comparable
    quarter.
    

Mid-Continent Segment Results

Full Year

--  Excluding the effect of non-cash derivative expense, the Mid-Continent
    segment total revenue increased $371.1 million, or 86%, to $802.6 million
    for the full year 2007 compared with $431.5 million for the prior year.
    This increase principally reflects the contribution from the acquisition of
    the Chaney Dell and Midkiff/Benedum systems of $345.7 million and higher
    volumes and commodity prices on its other systems.
    
--  The NOARK system throughput volume increased 77.1 MMcfd, or 31%, to
    326.7 MMcfd for the full year 2007 compared with 249.6 MMcfd the full year
    2006.
    
--  The Elk City/Sweetwater system average gross natural gas processed
    volume increased 71.8 MMcfd, or 47%, to 225.8 MMcfd for the full year 2007
    compared with 154.0 MMcfd for the prior year.  The Partnership connected
    110 new wells to the Elk City/Sweetwater system during the full year 2007
    compared with 64 new wells for the prior year.
    
--  The Velma system's average processed natural gas volume increased 2.4
    MMcfd, or 4%, to 60.5 MMcfd for the full year 2007 compared with 58.1 MMcfd
    for the prior year.  The Partnership connected 58 new wells to its Velma
    system during the full year 2007 compared with 60 new wells for the prior
    year.
    

Fourth Quarter

--  Excluding the effect of non-cash derivative expense, the Mid-Continent
    segment total revenue increased $224.6 million, or 206%, to $333.6 million
    for the fourth quarter 2007 compared with $109.0 million for the prior year
    comparable quarter.  This increase principally reflects the contribution
    from the acquisition of the Chaney Dell and Midkiff/Benedum systems of
    $213.3 million and higher volumes and commodity prices on its other
    systems.
    
--  Average gross natural gas processed volume for the fourth quarter 2007
    was 256.1 MMcfd for the Chaney Dell system and 101.5 MMcfd for the
    Midkiff/Benedum system.  There were 68 new wells connected to the Chaney
    Dell system during the fourth quarter 2007, and there were 57 new wells
    connected to the Midkiff/Benedum system for the same period.
    
--  The NOARK system throughput volume increased 82.5 MMcfd, or 29%, to
    371.4 MMcfd for the fourth quarter 2007 compared with 288.9 MMcfd for the
    fourth quarter 2006.
    
--  The Elk City/Sweetwater system average gross natural gas processed
    volume increased 16.5 MMcfd, or 8%, to 229.5 MMcfd for the fourth quarter
    2007 compared with 213.0 MMcfd for the fourth quarter 2006.  The
    Partnership connected 17 new wells to the Elk City/Sweetwater system during
    the fourth quarter 2007 compared with 10 new wells for the prior year
    comparable quarter.
    
--  The Velma system's average processed natural gas volume increased 4.6
    MMcfd, or 8%, to 60.5 MMcfd for the fourth quarter 2007 compared with 55.9
    MMcfd for the prior year comparable quarter.  The Partnership connected 10
    new wells to its Velma system during the fourth quarter 2007 compared with
    7 new wells for the prior year comparable quarter.
    

Appalachia Segment Results

Full Year

--  Total revenue for the Appalachia system increased $4.7 million, or
    approximately 15%, to $35.6 million for the year ended December 31, 2007
    compared with $30.9 million for the prior year due principally to higher
    throughput volume and $1.6 million of natural gas and liquids sales
    associated with the Irishtown processing plant, which was acquired in
    August 2007.
    
--  Throughput volume increased 6.8 MMcfd, or 11%, to 68.7 MMcfd for the
    year ended December 31, 2007 compared with 61.9 MMcfd for the prior year
    resulting from the connection of new wells to the Appalachia gathering
    system and throughput associated with the gathering system acquired in
    connection with the Irishtown processing plant.
    
--  The Appalachia system's average transportation rate per thousand cubic
    feet ("mcf") was $1.35 for the full year 2007 compared with $1.34 for the
    full year 2006.
    
--  During the fourth quarter 2007, 166 new wells were connected to the
    Appalachia gathering system.  For the year ended December 31, 2007, 874 new
    wells, including 267 Irishtown wells which were acquired in August 2007,
    were connected to the Appalachia gathering system compared with 711 new
    wells for the prior year, representing a 23% increase.
    

Fourth Quarter

--  Total revenue for the Appalachia system increased $2.5 million, or
    33%, to $10.1 million for the fourth quarter 2007 compared with $7.6
    million for the fourth quarter 2006, due principally to higher throughput
    volume and $1.2 million of natural gas and liquids sales associated with
    the Irishtown processing plant.
    
--  Throughput volume increased 11.1 MMcfd, or 18%, to 74.2 MMcfd for the
    fourth quarter 2007 compared with 63.1 MMcfd for the fourth quarter 2006
    resulting from the connection of new wells to the Appalachia gathering
    system and throughput associated with the gathering system acquired in
    connection with the Irishtown processing plant.
    
--  The Appalachia system's average transportation rate per thousand cubic
    feet ("mcf") was $1.30 for both the fourth quarter 2007 and 2006.
    

Corporate and Other

--  General and administrative expense, including amounts reimbursed to
    affiliates, increased $38.4 million to $61.0 million for the full year 2007
    compared with $22.6 million for the prior year.  This increase was
    primarily related to a $30.0 million increase in non-cash compensation
    expense and higher costs of managing our operations, including the Chaney
    Dell and Midkiff/Benedum systems acquired in July 2007, and related
    incentive compensation. General and administrative expense also increased
    $2.3 million to $9.4 million for the fourth quarter 2007 from $7.1 million
    for the fourth quarter 2006.  This increase was primarily related to higher
    costs of managing our operations.
    
--  Depreciation and amortization increased $28.0 million to $51.0 million
    for the full year 2007 due primarily to the depreciation associated with
    the Chaney Dell and Midkiff/Benedum assets acquired by the Partnership in
    July 2007 and the Partnership's expansion capital expenditures incurred
    subsuequent to the fourth quarter 2006.  Depreciation and amortization also
    increased $15.3 million to $21.6 million for the fourth quarter 2007 due to
    the same reasons previously mentioned.
    
--  Interest expense increased $36.9 million to $61.5 million for the full
    year 2007 compared with the prior year and increased $17.0 million to $23.4
    million for the fourth quarter 2007 compared with the prior year comparable
    quarter.  These increases were primarily related to interest associated
    with the Partnership's $830.0 million term loan, which was funded in July
    2007 and partially financed its acquisition of the Chaney Dell and
    Midkiff/Benedum systems, additional borrowings under the Partnership's
    credit facility to finance its expansion capital expenditures, and $5.0
    million of accelerated amortization of deferred finance costs associated
    with the Partnership's replacement of its credit facility in July 2007 with
    a new $300.0 million revolving credit facility. Excluding non-cash
    amortization of deferred financing costs, cash interest expense for the
    fourth quarter 2007 was $22.7 million compared with $5.8 million for the
    prior year fourth quarter, and $54.1 million for the full year 2007
    compared with $23.6 million for the full year 2006. At December 31, 2007,
    the Partnership had $1,229.4 million of total debt, including its $830.0
    million term loan that matures in 2014, $294.4 million of senior unsecured
    notes that mature in 2015 and $105.0 million of outstanding borrowings
    under its $300.0 million credit facility.
    
--  Minority interest expense of $2.6 million and $3.9 million for the
    fourth quarter 2007 and the year ended December 31, 2007, respectively,
    represents Anadarko's 5% ownership interest in the net income of the Chaney
    Dell and Midkiff/Benedum joint ventures, which were formed to effect the
    Partnership's acquisition of control of the respective systems.
    

Interested parties are invited to access the live webcast of an investor call with management regarding the Partnership's fourth quarter and yearend 2007 results on Tuesday, February 26, 2008 at 9:00 am ET by going to the Investor Relations section 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 26, 2008. To access the replay, dial 1-888-286-8010 and enter conference code 30715542.

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 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 Energy Resources, LLC 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. 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 (NYSE: ATN). 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 Partners, 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 the Partnership 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 Pipeline's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.

              ATLAS PIPELINE PARTNERS, 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)        (134,449)      4,179    (174,103)     12,412
                            ----------  ----------  ----------  ----------
      Total revenue and
       other income (loss)     213,548     116,835     668,800     464,692
                            ----------  ----------  ----------  ----------

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               6,312       6,785      55,047      20,250
   Compensation
    reimbursement -
    affiliates                   3,119         336       5,939       2,319
   Depreciation and
    amortization                21,601       6,309      50,982      22,994
   Interest                     23,400       6,381      61,526      24,572
   Minority interest             2,564           -       3,940         118
                            ----------  ----------  ----------  ----------
      Total costs and
       expenses                315,002     109,363     813,109     431,027
                            ----------  ----------  ----------  ----------

Net income (loss)             (101,454)      7,472    (144,309)     33,665
Preferred unit dividend
 effect                              -           -      (3,756)          -
Preferred unit imputed
 dividend cost                    (636)       (636)     (2,494)     (1,898)
                            ----------  ----------  ----------  ----------
Net income (loss)
 attributable to common
 limited partners and the
 general partner            $ (102,090) $    6,836  $ (150,559) $   31,767
                            ==========  ==========  ==========  ==========

Allocation of net income
 (loss) attributable to
 common limited
 partners and the
 general partner:
   Common limited partners'
    interest                $ (104,217) $    2,894  $ (163,071) $   16,558
   General partner's
    interest                     2,127       3,942      12,512      15,209
                            ----------  ----------  ----------  ----------
    Net income (loss)
     attributable to
     common limited partners
     and the general
     partner                $ (102,090) $    6,836  $ (150,559) $   31,767
                            ==========  ==========  ==========  ==========

Net income (loss)
 attributable to common
 limited partners per unit:
      Basic                 $    (2.69) $     0.22  $    (6.75) $     1.29
                            ==========  ==========  ==========  ==========
      Diluted               $    (2.69) $     0.22  $    (6.75) $     1.27
                            ==========  ==========  ==========  ==========

Weighted average common
 limited partner units
 outstanding:
      Basic                     38,713      13,080      24,171      12,884
                            ==========  ==========  ==========  ==========
      Diluted                   38,713      13,284      24,171      13,053
                            ==========  ==========  ==========  ==========

Capital expenditure data:
   Maintenance capital
    expenditures            $    5,315  $    1,728  $    9,115  $    4,649
   Expansion capital
    expenditures                53,915      20,360     143,775      79,182
                            ----------  ----------  ----------  ----------
      Total                 $   59,230  $   22,088  $  152,890  $   83,831
                            ==========  ==========  ==========  ==========


Balance Sheet Data (at     December 31, December 31,
 period end):                  2007        2006
                           ------------ -----------
   Cash and cash
    equivalents             $    11,980 $     1,795
   Total assets               2,877,614     786,884
   Total debt                 1,229,426     324,083
   Total partners' capital    1,273,960     379,134





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


                              Three Months Ended          Years Ended
                                 December 31,             December 31,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
Mid-Continent
 Revenue:
   Natural gas and liquids  $  323,074  $   95,273  $  759,553  $  391,356
   Transportation,
    compression, and other
    fees                        14,858       9,836      48,041      30,653
   Other income (loss)        (134,520)      4,095    (174,438)     11,804
                            ----------  ----------  ----------  ----------
      Total revenue and
       other income (loss)     203,412     109,204     633,156     433,813
                            ----------  ----------  ----------  ----------

Costs and expenses:
   Natural gas and liquids     237,294      81,722     586,677     334,299
   Plant operating              16,514       4,716      34,667      15,722
   Transportation and
    compression                  1,806       1,778       7,249       5,807
   General and
    administrative               4,826       5,283      48,332      15,036
   Depreciation and
    amortization                20,320       5,288      46,327      19,322
   Minority interest             2,564           -       3,940         118
                            ----------  ----------  ----------  ----------
      Total costs and
       expenses                283,324      98,787     727,192     390,304
                            ----------  ----------  ----------  ----------
   Segment profit (loss)    $  (79,912) $   10,417  $  (94,036) $   43,509
                            ==========  ==========  ==========  ==========

Appalachia
 Revenue:
   Natural gas and liquids  $    1,185  $        -  $    1,565  $        -
   Transportation,
    compression, and other
    fees - affiliates            8,493       7,530      33,169      30,189
   Transportation,
    compression, and other
    fees - third parties           387          17         575          82
   Other income                     71          84         335         608
                            ----------  ----------  ----------  ----------
      Total revenue and
       other income             10,136       7,631      35,644      30,879
                            ----------  ----------  ----------  ----------

Costs and expenses:
   Natural gas and liquids         591           -         847           -
   Transportation and
    compression                  1,801       1,336       6,235       4,946
   General and
    administrative               2,302         919       6,327       3,767
   Depreciation and
    amortization                 1,281       1,021       4,655       3,672
                            ----------  ----------  ----------  ----------
      Total costs and
       expenses                  5,975       3,276      18,064      12,385
                            ----------  ----------  ----------  ----------
   Segment profit           $    4,161  $    4,355  $   17,580  $   18,494
                            ==========  ==========  ==========  ==========

Reconciliation of segment
 profit (loss) to net income
 (loss):
  Segment profit (loss):
   Mid-Continent            $  (79,912) $   10,417  $  (94,036) $   43,509
   Appalachia                    4,161       4,355      17,580      18,494
                            ----------  ----------  ----------  ----------
      Total segment profit
       (loss)                  (75,751)     14,772     (76,456)     62,003
   Corporate general and
    administrative expense      (2,303)       (919)     (6,327)     (3,766)
   Interest expense            (23,400)     (6,381)    (61,526)    (24,572)
                            ----------  ----------  ----------  ----------
  Net income (loss)         $ (101,454) $    7,472  $ (144,309) $   33,665
                            ==========  ==========  ==========  ==========






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


                              Three Months Ended          Years Ended
                                 December 31,             December 31,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
Reconciliation of net income
 (loss) to adjusted net
 income (loss):
   Net income (loss)        $ (101,454) $    7,472  $ (144,309) $   33,665
   Non-cash derivative
    expense (income)           130,168        (209)    169,424      (2,316)
   Non-cash compensation
    expense                        210       2,190      36,320       6,315
   Effect of prior period
    items (1)                        -           -           -           -
                            ----------  ----------  ----------  ----------
      Adjusted net income
       (loss)               $   28,924  $    9,453  $   61,435  $   37,664
                            ==========  ==========  ==========  ==========

Reconciliation of net income
 (loss) to non-GAAP
 measures(2):
   Net income (loss)        $ (101,454) $    7,472  $ (144,309) $   33,665
   Effect of prior period
    items (1)                        -           -           -       1,090
   Depreciation and
    amortization                21,601       6,309      50,982      22,994
   Interest expense             23,400       6,381      61,526      24,572
                            ----------  ----------  ----------  ----------
      EBITDA                   (56,453)     20,162     (31,801)     82,321
   Non-cash derivative
    expense (income)           130,168        (209)    169,424      (2,316)
   Non-cash compensation
    expense                        210       2,190      36,320       6,315
   Unrecognized economic
    impact of Anadarko
    acquisition(3)                   -           -      10,423           -
   Other non-cash items (4)      1,414           -       1,414           -
                            ----------  ----------  ----------  ----------
      Adjusted EBITDA           75,339      22,143     185,780      86,320
   Interest expense            (23,400)     (6,381)    (61,526)    (24,572)
   Minority interest share
    of interest expense              -           -           -         938
   Amortization of deferred
    financing costs
    (included within
    interest expense)              690         545       7,380       2,298
   Maintenance capital
    expenditures                (5,315)     (1,728)     (9,115)     (4,649)
                            ----------  ----------  ----------  ----------
      Distributable cash
       flow                 $   47,314  $   14,579  $  122,519  $   60,335
                            ==========  ==========  ==========  ==========


(1) During June 2006, the Partnership identified measurement reporting
    inaccuracies on three newly installed pipeline meters.  To adjust for
    such inaccuracies, which related 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.

(2) 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 common 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.

(3) The acquisition of the Chaney Dell and Midkiff/Benedum systems was
    consummated on July 27, 2007, although the acquisitions' effective date
    was July 1, 2007.  As such, the Partnership receives the economic
    benefits of ownership of the assets as of July 1, 2007.  However, in
    accordance with accounting regulations, the Partnership has only
    recorded the results of the acquired assets commencing on the closing
    date of the acquisition.

(4) Includes the cash proceeds received from the sale of the Partnership's
    Enville plant and the non-cash loss recognized within the Partnership's
    statements of operations.





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


                                                 Three
                                             Months Ended    Years Ended
                                              December 31,   December 31,
                                            --------------- ---------------
                                             2007    2006    2007    2006
                                            ------- ------- ------- -------
Mid-Continent - Velma System
 Natural Gas
   Gross natural gas gathered - mcfd(1)      62,396  57,835  62,497  60,682
   Gross natural gas processed - mcfd(1)     60,533  55,909  60,549  58,132
   Gross residue natural gas - mcfd(1)       46,481  43,758  47,234  45,466
 Natural Gas Liquids
   Gross NGL sales - bpd(1)                   6,645   6,087   6,451   6,423
 Condensate
   Gross condensate sales - bpd(1)              232     143     225     193

Mid-Continent - Elk City/Sweetwater System
 Natural Gas
   Gross natural gas gathered - mcfd(1)     296,647 295,181 298,200 277,063
   Gross natural gas processed - mcfd(1)    229,527 213,033 225,783 154,047
   Gross residue natural gas - mcfd(1)      208,826 198,263 206,721 140,969
 Natural Gas Liquids
   Gross NGL sales - bpd(1)                   9,582   7,539   9,409   6,400
 Condensate
   Gross condensate sales - bpd(1)              166     184     212     140

Mid-Continent - Chaney Dell System(2)
 Natural Gas
   Gross natural gas gathered - mcfd(1)     261,867       - 259,270       -
   Gross natural gas processed - mcfd(1)    256,063       - 253,523       -
   Gross residue natural gas - mcfd(1)      220,031       - 221,066       -
 Natural Gas Liquids
   Gross NGL sales - bpd(1)                  13,060       -  12,900       -
 Condensate
   Gross condensate sales - bpd(1)              577       -     572       -

Mid-Continent - Midkiff/Benedum System(2)
 Natural Gas
   Gross natural gas gathered - mcfd(1)     145,217       - 147,240       -
   Gross natural gas processed - mcfd(1)    101,495       - 103,628       -
   Gross residue natural gas - mcfd(1)       94,583       -  94,281       -
 Natural Gas Liquids
   Gross NGL sales - bpd(1)                  20,557       -  20,618       -
 Condensate
   Gross condensate sales - bpd(1)            1,053       -   1,346       -

Mid-Continent - NOARK system
   Ozark Gas Transmission throughput -
    mcfd(1)                                 371,425 288,897 326,651 249,581

Appalachia
   Throughput - mcfd(1)                      74,198  63,134  68,715  61,892
   Average transportation rate per mcf(1)   $  1.30 $  1.30 $  1.35 $  1.34



(1) "Mcf" represents thousand cubic feet; "Mcfd" represents thousand
    cubic feet per day; "Bpd" represents barrels per day.
(2) Volumetric data for the Chaney Dell and Midkiff/Benedum systems for
    the year ended December 31, 2007 represents volumes recorded for the
    158-day period from July 27, 2007, the date of acquisition, through
    December 31, 2007.





              ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
              Current Mid-Continent Segment Hedge Positions
                        (as of February 25, 2008)


Natural Gas Liquids Sales

Production Period                 Average
Ended December 31,  Volumes    Fixed Price
----------------- ------------ ------------
                    (gallons)  (per gallon)
2008                61,362,000 $      0.706
2009                 8,568,000        0.746



Crude Oil Sales Options (associated with NGL volume)

Production
 Period                          Associated
  Ended              Crude           NGL       Average Crude
December 31,        Volume         Volume     Strike Price     Option Type
------------    -------------- -------------- -------------- --------------
                   (barrels)      (gallons)    (per barrel)

2008                 4,173,600    279,347,544 $        60.00 Puts purchased
2008                 4,173,600    279,347,544          79.23 Calls sold
2009                 5,184,000    354,533,760          60.00 Puts purchased
2009                 5,184,000    354,533,760          78.88 Calls sold
2010                 3,127,500    213,088,050          61.08 Puts purchased
2010                 3,127,500    213,088,050          81.09 Calls sold
2011                   606,000     34,869,240          70.59 Puts purchased
2011                   606,000     34,869,240          95.56 Calls sold
2012                   450,000     25,893,000          70.80 Puts purchased
2012                   450,000     25,893,000          97.10 Calls sold



Natural Gas Sales

Production Period              Average
Ended December 31,  Volumes   Fixed Price
----------------- ----------- ----------
                  (mmbtu)(1)  (per mmbtu)(1)
2008                5,484,000 $    8.795
2009                5,724,000      8.611
2010                4,560,000      8.526
2011                2,160,000      8.270
2012                1,560,000      8.250


Natural Gas Basis Sales

Production Period              Average
Ended December 31,  Volumes   Fixed Price
----------------- ----------- ----------
                  (mmbtu)(1)  (per mmbtu)(1)
2008                5,484,000 $   (0.727)
2009                5,724,000     (0.558)
2010                4,560,000     (0.622)
2011                2,160,000     (0.664)
2012                1,560,000     (0.601)





              ATLAS PIPELINE PARTNERS, L.P. AND SUBSIDIARIES
              Current Mid-Continent Segment Hedge Positions
                        (as of February 25, 2008)


Natural Gas Purchases

Production Period              Average
Ended December 31,  Volumes   Fixed Price
----------------- ----------- ----------
                  (mmbtu)(1)  (per mmbtu)(1)
2008               16,260,000 $    8.978(2)
2009               15,564,000      8.680
2010                8,940,000      8.580
2011                2,160,000      8.270
2012                1,560,000      8.250


Natural Gas Basis Purchases

Production Period              Average
Ended December 31,  Volumes   Fixed Price
----------------- ----------- ----------
                  (mmbtu)(1)  (per mmbtu)(1)
2008               16,260,000 $   (1.114)
2009               15,564,000     (0.654)
2010                8,940,000     (0.600)
2011                2,160,000     (0.700)
2012                1,560,000     (0.610)


Crude Oil Sales

Production Period              Average
Ended December 31,  Volumes   Fixed Price
----------------- ----------- ----------
                   (barrels) (per barrel)
2008                   65,400 $   59.424
2009                   33,000     62.700


Crude Oil Sales Options

Production Period                    Average
Ended December 31,    Volumes     Strike Price
-----------------  -------------- --------------
                     (barrels)    (per barrel)     Option Type
                                                  --------------
2008                      262,800 $       60.000  Puts purchased
2008                      262,800         78.174  Calls sold
2009                      306,000         60.000  Puts purchased
2009                      306,000         80.017  Calls sold
2010                      234,000         61.795  Puts purchased
2010                      234,000         83.027  Calls sold
2011                       30,000         60.000  Puts purchased
2011                       30,000         74.500  Calls sold
2012                       30,000         60.000  Puts purchased
2012                       30,000         73.900  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 936,000 mmbtu of natural gas at an average price of
    $15.50 per mmbtu for the year ended December 31, 2008.

Contact Information

  • Contact:
    Brian J. Begley
    Vice President, Investor Relations
    1845 Walnut Street
    Philadelphia, PA 19103
    (215) 546-5005
    (215) 553-8455 (facsimile)