Atlas Pipeline Partners, L.P. Bank Of America Leveraged Finance Conference December 2, 2014
Notice about the Recent Targa Atlas Announcement On October 13, 2014, the Partnership announced that it has entered into a definitive agreement to be acquired by Targa Resources Partners L.P. (NYSE: NGLS) in a transaction valuing the…
Atlas Pipeline Partners, L.P. (NYSE: APL) Midstream gathering & processing MLP Units currently yielding approximately 7.0%* with 17 processing plants, approximately to unitholders based on annualized recent 2.0 Bcf/d of gross…
APL Asset Overview 1 West TX System 3 SouthOK System Geographic Area: Permian Basin Geographic Area: Woodford Shale/Ardmore/ Arkoma/SCOOP Processing Capacity: 655 mmcfd Processing Capacity: 500 mmcfd(1) Processing Plants: 5…
APL Management Executing Calculated, Prudent Growth In the past 4+ years, APL has gone from 5 processing plants in its footprint to 17 through M&A and organic expansions Three plants brought online this year have increased overall…
APL 2014 Plan is on Track 3Q Results Reflect Progress Financially Total Bank Calculated Leverage (x times) March 2014 - APL amended its credit facility to provide higher covenant limits on total leverage to add near term flexibility…
Summary Quarterly Performance Comparison 3rd Quarter Update ( in millions except as noted) 3Q 2014 2Q 2014 % Variance Throughput Volume (Mcfd) Strong quarterly results as volumes increase and new SouthOK 435,018 433,294 0.4%…
Strategic Focus & Business Initiatives Targeting high rates of return on organic growth capital (fee contracts 15%+, commodity exposed contracts 20%+) Capital Discipline Utilize credit profile and liquidity to fund highly accretive…
Operational Update 10
Exposure to Oily/NGL Basins Provide Economic Incentive to Drill In each of the 4 major plays in which APL operates, producers are attracted not only by natural gas, but by accompanying crude oil/condensate/NGLs Returns look attractive…
WestTX Update Overview WestTX System Key Producers Geographical Area: Permian Basin In Area Miles of Pipeline: Approx. 3,600 Current Processing Capacity: 655,000 Mcfd Number of Rigs Running: 79 Average Processed Volume (mcf/d)…
SouthTX Update Overview SouthTX System Map Geographical Area: Eagle Ford Shale Miles of Pipeline: Approx. 500 Processing Capacity: 400,000 Mcfd Joint Venture Partner*: TexStar/Southcross Average Processed Volume (mcf/d) 200,000…
WestOK Update Overview WestOK System Geographical Area: Anadarko Basin / Mississippi Lime Key Producers In Area Miles of Pipeline: Approx. 5,700 Processing Capacity: 458,000 Mcfd (nameplate) Number of Rigs Running: 25 Average…
SouthOK Update (Velma & Arkoma) SouthOK Overview SouthOK System Geographical Area: Woodford Shale/Arkoma/SCOOP Miles of Pipeline: Approx. 1,300 Processing Capacity: 500,000 Mcfd (gross)1 Number of Rigs Running: 24 SouthOK Average…
Financial Overview 16
Financial Objectives Rising fixed fee cash flows and elongation of hedge book into later periods reduce cash flow volatility Bank total leverage trending near 4x in 3Q2014; ATM equity program has funded portion of growth capital…
APL Fixed-Fees Up Considerably in Recent Years Pre-Elk City & LMM Sale (3Q 2010)* Current 3Q 2014 Contract Mix* Expected YE 2014 Contract Mix* Keep-Whole: 1% Keep-Whole: 1% Fixed Fee Keep- 17% Whole Fixed Fixed 32% Fee Fee Percent…
Atlas Pipeline has made Progress with Credit Profile of Partnership Current Ratings / Recent Upgrades Credit facility expanded in May 2012 to 600 B+ (Corporate Family) CFR Upgrade from million (excluding 200 mm accordion feature) 2010:…
APL Distributable Cash Flow less Dependent on NGL Pricing Financial results for 3Q 2014 Realized NGL price vs. Run-Rate Distributable Cash Flow/Unit quarter stronger versus previous quarter 1.40 DCF 3.80 3.60 3.60 Stronger…
Commodity Exposure Well Protected for Remaining 2014; Growing for 2015 Executing on Risk Total Risk Management Margin Coverage(1) Management Strategy, 80% Average for including targeting up to remaining 71% 2014: 68% 80% of value…
Targa Atlas Proposed Transaction 23
Targa + Atlas: Transaction Overview Targa Resources Partners LP (NYSE: NGLS; TRP )has executed a definitive agreement to acquire Atlas Pipeline Partners, L.P. (NYSE: APL) for 5.8 billion(1) 0.5846 NGLS common units plus a one-time cash…
Targa + Atlas: Attractive Positions in Active Basins 25
Targa + Atlas: Strategic Highlights (1) Source: Oil & Gas Investor 26 (3) Based on NGLS and APL guidance ranges (2) Based on market data as of October 10, 2014, less the value of 16.3 MM PF NGLS units owned by TRGP (4) Based on…
Appendix 27
Reconciliation to Non-GAAP Measures Reconciliation to Non-GAAP Measures Three Months Ended LTM 30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 30-Sep-14 Reconciliation of net income (loss) to other non-GAAP measures: Net income (loss) 49,374…
Hedging Program Update Rolling 36-Month Strategy Using Product Specific Options / Swaps SWAP CONTRACTS SWAP CONTRACTS NATURAL GAS LIQUIDS HEDGES NATURAL GAS HEDGES Months 1-12: Production Period Purchased /Sold Commodity Gallons Avg.…
Atlas Organizational Structure 100% 100% Atlas Pipeline Atlas Resource Public Public Partners GP, LLC Partners GP, LLC 5.8% LP ** (1) 28% LP 2.0% GP & 5.8MM units 24.7MM units 2.0% GP & 100% IDRs 100% IDRs 94.2% LP ** 72%…
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