Philadelphia, PA, March 20, 2022 - Atlas Pipeline
Partners L.P. (AMEX:APL) (the "Partnership") announces that
it has closed the acquisition of the gas gathering system
of American Refining and Exploration Company located in Fayette
County, Pennsylvania ("the System") for $900,000 in total
consideration, consisting of $150,000 in cash and 32,924 common
units of the Partnership, issued at a price of $22.78 per
common unit.
Michael L. Staines, President and Chief Operating Officer
stated: "We expect that, based on existing gas throughput,
this acquisition will be immediately accretive to the Partnership's
earnings. We also believe that there are more than 5 billion
cubic feet of remaining proven and producing natural gas reserves
contained in wells currently connected to the System. While
the System is relatively small - approximately 20 miles of
pipeline with 1.0 million cubic feet of natural gas throughput
per day from traditional and coal bed methane wells - it is
of strategic importance to us as it will provide an additional
delivery point onto the Texas Eastern Pipeline, a major interstate
gas transmission line. This System and delivery point will
serve production from existing and new wells that we expect
to be drilled in the area by one of our affiliates and other
operators."
In a separate transaction, Atlas America, Inc., an affiliate
of the General Partner of the Partnership and a wholly owned
subsidiary of Resource America, Inc. (Nasdaq:REXI), closed
its acquisition of American Exploration and Refining Company's
producing oil and gas assets and mineral rights in Fayette
County, Pennsylvania that currently are connected to the System.
Atlas Pipeline Partners, L.P. now owns and operates more than
1100 miles of natural gas gathering pipelines in western Pennsylvania,
western New York and eastern Ohio. The Partnership is paid
a fee for the natural gas volumes that are gathered and transported
through its pipeline system from approximately 3,300 wells
that are currently connected to its system.
Statements made in this release may include forward-looking
statements, which involve substantial risks and uncertainties.
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 competition
within the energy industry, climactic conditions and the price
of gas in the Appalachian area, actual versus projected volumetric
production from wells connected to the Partnership's gas-gathering
pipeline system, and the cost of supplies and services in
the energy industry.