Atlas Pipeline Partners: Prospects Look Bright for 2008

I recently listened to the year end conference call for Atlas Pipeline Partners LP (APL). The company had an outstanding 2007 and prospects look good for 2008. APL is majority owned by Atlas America (ATLS), which manages several related companies in the natural gas business. Here is an excerpt I received as a comment on my first post concerning APL.

APL is actually owned by AHD which in turn is owned by ATLS. ATLS actually owns and manages APL, ATN and AHD.Sincerely,

Robert R. Firth
COO Atlas Pipeline Holdings (AHD)
President and CEO APLMC (APL)

Although I find the corporate structure a little confusing, this is what I took away from the conference call:

• They are drilling for and finding natural gas in their several exploration areas.
• They are transporting natural gas.
• They are processing natural gas.
• They are selling natural gas.
• Their prospects to make money from natural gas are excellent.

APL generates revenues in the transporting and processing stages, earning a percentage of the value on all the gas transported and processed. The $3.70 dividend for 2007 should approach $4.00 for 2008. If gas prices increase, even better.

Many natural gas watchers believe this clean energy source has remained undervalued in relation to oil. Many are projecting near term price increases. In this site’s 20 Stock Portfolio, APL and Penn West Energy (PWE) give high income exposure to this important energy source.

Disclosure: I currently do not have a position in APL. I have a long position in PWE.

Comments

[Hoffpauir:]

I couldn't agree more. I am 100% invested in energy stocks. Primarily those that have a dividend yield >10%. I view their reserves as an excellant hedge on inflation plus I enjoy and reinvest the income. Try APL, ERF, LINE, PGH, PWE, COP, PBT, PBT, TRP. Recently an agricultural play has come to my attention TNH.

2008 Mar 15 09:56 AM

[mikyx:]

The oil recovery is taking its toll on the rivers, lakes, fish and habitat that is being polluted, many people are getting cancer so the price is too high in real costs.

2008 Jun 16 08:43 PM