Atlas Pipeline Partners L.P. reported an update to its hedge positions for certain hydrocarbon volumes that it expects to generate in its Mid-Continent processing operations.
Based on current natural gas liquid (NGL) production, given recently added ethane and propane puts for the second half 2008 and full year 2009 periods, the total value of NGLs hedged is now approximately 61% for second half 2008 and 58% for full year 2009. The Partnership’s NGL production is hedged through the combination of NGL swaps, the recently added ethane and propane puts, and crude oil puts protecting the heavier NGL components.
Crude oil put options also provide floor protection for condensate prices related to the Partnership’s processing volumes. Condensate production is approximately 80% hedged for the remainder of 2008 and 53% for full year 2009 given recently added crude oil put contracts. Additionally, net natural gas production is approximately 77% hedged for the second half of 2008 and the full year 2009.
“In combination with our significant fee based business, these recently executed hedge contracts represent our ongoing strategy of protecting our cash flows and production volumes against commodity price movements,” stated Robert R. Firth, President, Atlas Pipeline Mid-Continent. “In addition, we have raised the floor price on a substantial portion of our crude oil collars from $60 to $80. We expect to continue to add to our overall hedge positions as we evaluate opportunities in conjunction with the projected growth in our operations.”
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, southern Kansas, northern and western Texas and the Texas panhandle, the Partnership owns and operates eight active 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, eastern Ohio and northeastern Tennessee.