LONG TERM WINNERS NEWS:(NYSE:SWN) Atlas Pipeline Partners, L.P. Reports Record Fourth Quarter 2005 Results
PHILADELPHIA--(Business Wire)--March 1, 2006--
Atlas Pipeline Partners, L.P. (NYSE:APL - the
"Partnership") today reported record earnings before interest, taxes, depreciation and amortization ("EBITDA"), a non-GAAP measure, of $21.3 million for the fourth quarter 2005 compared with $14.5 million for the prior year fourth quarter, an increase of $6.8 million or 47%. Net income for the fourth quarter 2005 was $10.9 million, or $0.70 per limited partner unit, compared with $11.1 million for the fourth quarter 2004, or $1.35 per limited partner unit. Net income and EBITDA
for the fourth quarter 2004 included a $4.4 million non-recurring gain on an arbitration settlement. The period over period increase in EBITDA was principally related to contributions from the acquisitions of a 75% interest in NOARK Pipeline System, Limited Partnership ("NOARK") in October 2005 and ETC Oklahoma Pipeline, Ltd. ("Elk City") in April 2005 and continued growth in the Partnership's Appalachian operations, partially offset by the absence in the current quarter of
the gain recognized on the arbitration settlement.
Excluding the net gain on arbitration settlement and solely for purposes of comparing the fourth quarter 2005 to the fourth quarter 2004, the Partnership's distributable cash flow, a non-GAAP measure, of $17.5 million for the fourth quarter 2005 would have represented an increase of $8.6 million, or 97%, compared with adjusted distributable cash flow of $8.9 million for the fourth quarter 2004. A schedule is provided at the end of this release to reconcile net income to adjusted distributable cash flow.
On January 9, 2006, the Partnership declared a record quarterly cash distribution for the fourth quarter 2005 of $0.83 per limited partner unit, paid February 14, 2006 to unitholders of record as of February 7, 2006. Distributions declared for the year ended December 31, 2005 of $3.16 per limited partner unit represent an 18% increase compared with distributions declared per limited partner unit for the
year ended December 31, 2004.
"Our record fourth quarter results demonstrate the continued
execution of our growth strategies and the commendable performance of our assets," said Edward E. Cohen, Chairman and Chief Executive Officer of the Partnership's general partner. "Our Mid-Continent operations achieved significant growth quarter over quarter due to a substantial contribution from the NOARK system from its date of acquisition and favorable increases in volumes and processing margins
at our Elk City system. We expect that our interest in the NOARK system will continue to add meaningfully to our results and provide us with additional expansion opportunities to fuel our growth in the region. Our Appalachia system continues to generate strong returns due to its strategic market position. The sustained growth of our cash flow and prospects for future expansion reinforces our decision to increase our quarterly distribution to $0.83 per limited partner unit, representing a 15% increase over the prior year fourth quarter and our
seventh consecutive distribution increase. We believe this increase exhibits the strength of our assets and epitomizes our objective to maximize unitholder value."
On December 20, 2005, the Partnership issued $250.0 million of 10 year, 8.125% senior unsecured notes in a private placement for net proceeds of approximately $243.1 million, after underwriting and other transaction costs. The Partnership utilized the net proceeds principally to repay indebtedness under its credit facility.
On November 28, 2005, the Partnership sold 2,700,000 limited
partner units in a public offering for gross proceeds of $113.4
million. In addition, pursuant to an option granted to the
underwriters of the offering, the Partnership sold 330,000 limited partner units on December 27, 2005 for gross proceeds of $13.9 million, or aggregate total gross proceeds of $127.3 million. The units were issued under the Partnership's previously filed Form S-3 shelf registration statement. The sale of the units resulted in net proceeds of approximately $121.0 million, after underwriting commissions and other transaction costs. The Partnership primarily utilized the net proceeds from the sale of the units to repay a portion of the amounts due under its credit facility.
On October 31, 2005, the Partnership acquired all of the
outstanding equity interests in a subsidiary of OGE Energy Corp., which owns a 75% operating interest in NOARK. NOARK's assets include a FERC-regulated interstate pipeline and an unregulated natural gas gathering system. Total consideration of $179.8 million, including $16.8 million for working capital adjustments and other related transaction costs, was funded through borrowings under the Partnership's amended credit facility. The remaining 25% interest in NOARK is owned by Southwestern Energy Pipeline Company ("Southwestern"), a wholly-owned subsidiary of Southwestern Energy
Company (NYSE:SWN).
Atlas Pipeline Partners, L.P.
Matthew Jones, 215-546-5005
Facsimile: 215-546-4785
Copyright Business Wire 2006
01Mar06 22:37 GMT
Symbols:
de;AT3 de;AT3F de;AT3X de;UXR us;APL us;ATLS
Source BW Business Wire
AI
