Atlas Pipeline Partners, L.P.
) broke even in its earnings for fourth-quarter 2013 missing the
Zacks Consensus Estimate of 12 cents.
The lower-than-expected earnings evoked a negative market
reaction with the units losing 6.29% to close at $31.00
Total revenues at the end of the fourth quarter were $580.1
million, missing the Zacks Consensus Estimate by 3.8%. The
year-over-year improvement of 64.8% was primarily driven by a
rise in natural gas & liquid sales and revenues generated
from transportation and processing.
Gathered gas volumes in the fourth quarter stood at 1.5 billion
cubic feet per day (Bcfd).
Atlas Pipeline's total revenues in 2013 surged 69.1% year over
year to $2.1 billion, mainly on the heels of strong natural gas
and liquid sales.
Atlas Pipeline's total operating expenses in the reported quarter
were $581.9 million, up 61.3% year over year mainly due to higher
cost of sales and expenses allocated to depreciation and
Gross margin in fourth quarter 2013 was 20.6%, compared with
22.6% in the prior-year quarter.
Interest expenses totaled $24.0 million, up 70.5% year over year
primarily attributable to the rising long-term debt level.
Atlas Pipeline Partners' cash and cash equivalents as of Dec 31,
2013, increased to $4.9 million versus $3.4 million as of Dec 31,
Long-term debt as of Dec 31, 2013, was $1.7 billion versus $1.2
billion as of Dec 31, 2012.
Cash provided by operating activities in the twelve months ending
Dec 31, 2013, was $65.7 million compared with $48.9 million in
the year-ago comparable period.
In 2013, the partnership invested $1.4 billion in capital
- WestTX system's average natural gas volumes processed in the
fourth quarter were 364.0 million cubic feet per day (MMcfd), an
increase of 34.0% year over year. The increase in volumes
processed was due to expansion of drilling activities and
completion of Driver plant.
- Average natural gas volumes processed in this system were 512.6
MMcfd, up 24.2% year over year. The increase can be attributed to
modifications at Atlas Pipeline's Waynoka I and II processing
- For the reported quarter, natural gas processed volumes were
151.9 MMcfd, up 42.6% from the year-ago comparable period. The
higher output was mainly due to the addition of production
facility in Woodford Shale, Ardmore Basin and South Central
Oklahoma Oil Province ("SCOOP") in southern Oklahoma.
- The total processing capacity of SouthTX system is 200 MMcfd
while it processed a total of 133.2 MMcfd natural gas volumes
during the reported quarter.
Atlas Pipeline expects total adjusted EBITDA for 2014 in the
range of $400 million to $425.0 million.
The adjusted EBITDA guidance assumes average price of $4.375 per
million BTU (MMBTU) for natural gas, $1.065 per gallon for
natural gas liquids and $92.785 per barrel for crude oil.
The partnership also provided an adjusted EBITDA guidance of $450
million to $500 million for 2015.
Atlas Pipeline anticipates a growth of processed natural gas
volumes at each of its systems. The partnership anticipates total
processed volumes to reach 1.8 Bcfd in 2014 from 1.5 Bcfd
achieved during fourth quarter 2013.
Atlas Pipeline Partners currently has a Zacks Rank #3 (Hold).
However, better-ranked stocks from the Oil & Gas Pipeline
Crestwood Equity Partners LP
Energy Transfer Equity, L.P.
Magellan Midstream Partners LP
). While Crestwood Equity currently holds a Zacks Rank #1 (Strong
Buy), Energy Transfer and Magellan Midstream carry a Zacks Rank
ATLAS PIPLN PTR (APL): Free Stock Analysis
CRESTWOOD EQTY (CEQP): Free Stock Analysis
ENERGY TRAN EQT (ETE): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
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