Source: Altas Pipeline Partners
Atlas Pipeline Partners, L.P. (NYSE: APL) has successfully expanded the Partnership's risk management program. Atlas Pipeline Partners has put in place additional coverage for its' natural gas liquids (NGL) and condensate exposure that now represents 74% of expected 2011 NGL and condensate margin, including approximately 80% coverage for the first half of 2011.
Further to this, additional coverage has been put in place for the Partnership's natural gas exposure, which represents a much smaller percentage of overall margin than the NGL and condensate component of the business.
Currently, approximately 61% of expected 2011 natural gas margin has been covered in the risk management program, including approximately 51% for the first half of 2011. When combined, 72% of overall margin coverage exists across these products for full year 2011. For the current year, implied price coverage exists for natural gas at $4.62/mmbtu, natural gas liquids (NGLs) at $1.42/gal (ex-ethane), and condensate at $86.00/bbl. The Partnership will continue to add protection as acceptable price points of the underlying commodity products present themselves.
"We are pleased to have added protection to our 2011 margins, particularly on the NGL and condensate part of our business. We have been rewarded with our patience as it relates to building out our risk management program, adding duration at price points that we believe are at attractive levels. Our discipline and overall strategy for managing the commodity price cycle has paid off and we will continue to look at adding more protection at attractive levels as they arise. Coupled with modifications in our contract mix, this protection will help stabilize distributable cash flow and lead to increased value for our unitholders," stated Eugene Dubay, Chief Executive Officer of the Partnership.