SOURCE: Atlas Pipeline Partners, L.P.

September 11, 2006 22:58 ET

Atlas Pipeline Partners, L.P. Reports Update to Its Hedge Positions

PHILADELPHIA, PA -- (MARKET WIRE) -- September 11, 2006 -- Atlas Pipeline Partners L.P. (NYSE: APL) (the "Partnership") reported today an update to its hedge positions 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.

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 the price of gas in the Mid-Continent area, actual versus projected volumetric production from wells in the area to be served by the new plant, the NGL content of the natural gas processed and other factors disclosed under "Risk Factors" in our most recent 10-K.

       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 - Suite 1000
    Philadelphia, PA 19103
    (215) 546-5005
    (215) 561-5692 (facsimile)