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Atlas Pipeline Partners, L.P.NYSE: APL
2007 OIPA
Monday, June 11, 2007
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Safe Harbor Statement
THE WORDS “BELIEVES, ANTICIPATES, EXPECTS” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD LOOKING STATEMENTS.
SUCH STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD LOOKING STATEMENTS.
THE RISKS AND UNCERTAINTIES ARE DISCUSSED IN OUR ANNUAL REPORT ON FORM 10-K, OUR QUARTERLY REPORT ON FORM 10-Q; PARTICULARLY IN THE SECTION TITLED RISK FACTORS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF.
THE PARTNERSHIP UNDERTAKES NO OBLIGATIONS TO PUBLICLY RELEASE THE RESULTS OF ANY REVISIONS TO FORWARD LOOKING STATEMENTS, WHICH MAY BE MADE TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
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Overview of Atlas Pipeline Partners, L.P.
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APL Business Summary
Atlas Pipeline Partners, L.P. (NYSE: APL) is a midstream energy services provider
engaged in the transmission, gathering and processing of natural gas
Through its Mid-Continent Operations, APL owns and operates: A FERC-regulated, 565-mile interstate pipeline system
Three natural gas processing plants (totaling 350 MMcf/d) and one treating facility (200
MMcf/d) located in Oklahoma
1,900 miles of active natural gas gathering systems located in Oklahoma, Arkansas, northern
Texas and the Texas panhandle 289 MMcf/d from Ozark Gas Transmission (1)
353 MMcf/d from the Velma and Elk City/Sweetwater systems (1)
Through its Appalachian Operations, APL owns and operates 1,600 miles of active natural gas gathering systems located in eastern Ohio, western New York
and western Pennsylvania 5,850 producing wells; connected 451 wells in 2005 and 711 wells in 2006 63.1 MMcf/d (1)
Ominbus agreement with Atlas America provides significant source of volume growth
1. All volume numbers reflect average daily volumes for the quarter ended December 31, 2006
Operational Overview
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Geographic Focus
Sweetwater Gas Gathering & Processing System
New cryogenic processing plant w/ 120Mmcf/d capacity
Became active late September 2006 Associated gathering system also in
place Expanding gathering system and
capacity to 180 MMcf/d Proximity to Elk City provides flexibility
Sweetwater Plant
Tx Ok
Velma Gas Gathering& Processing System
Located in Golden Trend area of OK 1,080 mi. of active gathering pipeline Approx. 640 receipt points serviced 100 MMcf/d capacity processing facility More then 150 producers under
acreage dedication and long term agreements
Velma Plant
NOARK Pipeline System
Ozark Gas Transmission − 565-mile FERC-regulated pipeline running from Oklahoma to Missouri, 2 compressor stations
Ozark Gas Gathering − 370-mile non-FERC-regulated natural gas gathering system, 11 compressor stations
Increasing capacity from 322 to 450 MMcf/d by adding compression
Accesses prolific Arkoma Basin and developing Fayetteville Shale
Appalachian Gathering System
Located in Appalachia Basin of eastern Ohio, western New York, and western Pennsylvania
Over 1,600 mi. of active gathering pipeline
Over 5,850 wells serviced
New York
WestVirginia
Pennsylvania
New York
WestVirginia
Pennsylvania
Elk City Gas Gathering& Processing System
Located in Anadarko Basin of Oklahoma 450 mi. of active gathering pipeline Over 360 receipt points serviced 130 MMcf/d processing facility 200 MMcf/d treating facility Connected to over 360 receipt points
Prentiss TreatingFacility Elk City Plant
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Growth Initiatives
Successfully completed four acquisitions totaling over $585 million in the last three years Velma system acquired for $142 million in July 2004 Elk City system acquired for $196 million in April 2005 NOARK system acquired in two separate transactions for a total of $249 million; 75% interest
acquired in October 2005; remaining 25% interest acquired in May 2006
Acquisition Growth
Organic Growth 120MMcf/d Sweetwater gas processing plant opened September 2006; total cost of
$40MM Currently operating at volumes over 90MMcf/d
Expanding gathering system and adding 60 MMcf/d of processing capacity at Sweetwater; expected completion by early 2008
Throughput expansion on NOARK by increasing compression; targeted completion by early 2008 Capacity to increase up to 450MMcf/d; total cost ~ $20-30 million
Continued Appalachian system growth driven by Atlas Energy Resources’ traditional drilling activity and additional potential growth from exploitation of deeper shale plays and other geological formations within their existing acreage position
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NOARK Pipeline System Overview High quality FERC-regulated transmission system
Adds stable, fee-based cash flows and reduces risk profile Provides substantial upside without significant capital expenditure requirements
NOARK pipeline diversifies existing APL business and expands footprint Expands Mid-Continent natural gas gathering and transportation position Facilitates additional bolt-on opportunities
Unregulated gathering business Separation of regulated and non-FERC-regulated assets provides growth opportunity APL gathering expertise expected to enhance growth
Strategic location provides access to significant natural gas supply Mid-Continent Region Arkoma Basin Fayetteville Shale – growing production area
Compression expansion project Added compression will increase throughput capacity up to 450MMcfd
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Gathering & Processing Overview
1,900 miles of pipelines in Oklahoma and Texas
100 MMcf/d processing plant capacity For the quarter ended ended 9/30/06, processed approximately 58.3 MMcf/d of natural gas and
approximately 6,600 Bbls/d of NGLs
Geographically positioned to benefit from rapidly growing Barnett Shale and
Woodford Shale plays Revenue from purchases of natural gas at the wellhead and sales of
processed gas and NGLs
Gas supply secured under long-term contracts
Throughput growth driven by system expansions and improved compression
Velma Highlights
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Gathering & Processing Overview
Elk City system provides gathering, compression, treating and processing services in the Anadarko Basin Stepped-up drilling activity in the region has increased system gas volumes over 100% since
2002, from 139 MMcf/d to over 284 MMcf/d currently
Supplied by over 300 gas receipt points
System can be enhanced through low-cost system extensions to areas of drilling activity
Location near active drilling area Access to prolific Anadarko basin
Drilling rig count in Oklahoma increased over 95% since 2002
Potential for additional well-connects
Elk City Highlights
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Appalachia Recent Developments
Atlas Energy Resources recently announced that during the fourth quarter of
2006 and first quarter of 2007 it plans to drill 3 wells to multiple pay zones,
including the Marcellus Shale of Southwestern Pennsylvania
Atlas Energy Resources believes it holds over 160,000 acres of prospective
Marcellus acreage in three counties
This shale play represents significant throughput potential for Atlas Pipeline
Partners
Industry banter of vertical type-well EUR of “600 to 1,000 MMcfe” within our
range of expectations
Atlas Energy Resources is planning six to ten additional wells in 2nd and 3rd
quarters; potentially a 40+ vertical well development schedule in 4th quarter
2007 and 1st quarter 2008
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