Atlas Pipeline Partners | Investor Relations : News Release.
Atlas Pipeline Partners | Investor Relations : News Release.
The two news releases linked above give the first indications of the progress for Atlas Pipeline Partners (APL) to deleverage the company. When the company released its quarterly earnings report a little over a month ago, management said they were in negotiation to sell all or part of 3 different company assets to raise cash and pay down debt. It looks like 2 of the deals are complete and I would say they were pretty successful.
First, APL has sold 51% of their Marcellus shale gathering network for $90 million in cash plus an additional $25 million obligation to be paid later.
The second was the sale of their NOARK natural gas system for $300 million.
So the company has raised almost $400 million in asset sales so far. At the end of 2008 APL had long term debt of approximately $1.5 billion, so they have raised enough to pay off about a quarter of the debt. The big question for shareholders is whether the company can sustain the 38¢ distribution. If they can, the shares which are currently yielding over 30% should move up significantly.
Disclosure: I currently own some Atlas Energy (ATN) and I am now taking a close look at APL.
