Previous Statements by APL
» Atlas Pipeline Partners, L.P. Q1 2010 Earnings Call Transcript
» Atlas Pipeline Partners, L.P. Q4 2008 Earnings Call Transcript
» Atlas Pipeline Partners, L.P. Q2 2008 Earnings Call Transcript
The company undertakes no obligations to publicly update our forward-looking statements, or 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.Lastly, management’s discussion this morning includes references to items such as the EBITDA and distributable cash flow, which represent non-gap measures. Our reconciliation of these non-gap measures is provided in the financial table of our quarterly earnings release as well as our form 10-Q. With that, I will turn the call over to our Chief Executive Officer, Eugene Dubay, for his remarks. Eugene? Eugene Dubay Thank you, Matt. Ladies and gentlemen, thank you for your participation today and your interest in Atlas Pipeline Partners. We are pleased to have you with us on our call. In the second quarter, we continued to see significant producer activity in all of our operating areas. The growth and volumes across our systems has exceeded all of our expectations, and I believe that in most cases, they have exceeded producer expectations. Our processed volume increased to an average of 682 million cubic feet per day in the second quarter, from an average volume of 632 million cubic feet per day, which we experience in the first quarter. During this quarter, we completed the construction of our new 60 million cubic feet per day plant at Velma and that plant is already processing over 40 million cubic feet per day. All of our plants, with the exception of the new Velma plant, are full and we are bypassing the West Oak plants with approximately 115 million cubic feet per day. Our financial results do not reflect this growth because we remain constrained on our liquids take away capacity in West Texas and western Oklahoma. However, despite having the fractionater down for a month in the quarter and being curtailed on our liquids production we have delivered the distributable cash flow to cover our distribution of $0.56.
This quarter, we expect to have our new plant at WESTOF completed, and we will add 200 million cubic feet per day of capacity to that system. Our new driver plant in West Texas should be complete in the first quarter of 2013 and we intend to utilize all 200 million cubic feet per day of capacity in that plant as quickly as possible.In this quarter and the next, we will begin to receive incremental margins with the addition of these plants, but the significant increase in margin will not be realized until we can increase our liquids production in 2013. By the end of the second quarter of 2013, we should have the capacity to maximize our liquids production and recognize the earnings impact attributable to our new plants. We have continued to extend forward our hedge production to cover our liquids, our hedge protection, to cover our liquids production, and we remain exuberant with regard to our potential development opportunities. This has been a difficult quarter, from an operating standpoint, because of the downstream problems caused by our fractionation and transportation suppliers. It has been significant in creating the foundation that we need to exploit the opportunities we have in the near term. With the volume of gas that we have across our systems, the next couple of quarters will remain challenging to our operations, but our business fundamentals will continue to improve, and as we gain capacity for our liquids production in 2013, we will be in an enviable position, and the benefit to our investors should be substantial. Read the rest of this transcript for free on seekingalpha.com