Atlas Pipeline Partners L.P. (APL, Financial) filed Quarterly Report for the period ended 2010-06-30.
Atlas Pipeline Partners L.p. has a market cap of $957.7 million; its shares were traded at around $18 with and P/S ratio of 1. APL is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Transportation, processing and other fee revenue decreased to $14.7 million for the three months ended June 30, 2010 compared with $20.9 million for the prior year period. This $6.2 million decrease was primarily due to a $6.5 million decrease from the Appalachia system as a result of our May 2009 contribution of the majority of the system to Laurel Mountain, a joint venture in which we have a 49% ownership interest. After the contribution, we recognized our ownership interest in the net income of Laurel Mountain as equity income on our consolidated statements of operations.
Other income (loss), net, including the impact of certain gains and losses recognized on derivatives, was a gain of $10.5 million for the three months ended June 30, 2010, which represents a favorable movement of $26.2 million from the prior year period loss of $15.6 million. We enter into derivative instruments principally to hedge our forecasted natural gas, NGLs and condensate sales against the variability in expected future cash flows attributable to changes in market prices. See further discussion of derivatives under Item 3: Quantitative and Qualitative Disclosures About Market Risk.
General and administrative expense, including amounts reimbursed to affiliates, decreased $0.3 million to $6.2 million for the three months ended June 30, 2010 compared with $6.5 million for the prior year period. The decrease was primarily due to a $0.3 million decrease in salaries and wages resulting mainly from a credit to compensation expense related to the fair value of share based awards.
Depreciation and amortization decreased $0.1 million to $22.9 million for the three months ended June 30, 2010. Depreciation in the Mid-Continent segment increased $1.1 million due primarily to expansion capital expenditures incurred subsequent to June 30, 2009, offset by a decrease of $1.2 million in the Appalachia segment due to the sale of assets in the second quarter of 2009.
Interest expense decreased to $24.6 million for the three months ended June 30, 2010 as compared with $26.4 million for the prior year period. This $1.8 million decrease was primarily due to a $2.1 million decrease in amortized deferred finance costs. The decreased amortization of deferred finance costs was due principally to accelerated amortization in the prior year period associated with the retirement of a portion of our term loan with the proceeds from the sale of our NOARK system.
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Atlas Pipeline Partners L.p. has a market cap of $957.7 million; its shares were traded at around $18 with and P/S ratio of 1. APL is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On June 30, 2010, we sold 8,000 newly created 12% Cumulative Class C Preferred Units of limited partner interest (the Class C Preferred Units) to Atlas Energy for cash consideration of $1,000 per Class C Preferred Unit resulting in total proceeds of $8.0 million (see Preferred Units).Transportation, processing and other fee revenue decreased to $14.7 million for the three months ended June 30, 2010 compared with $20.9 million for the prior year period. This $6.2 million decrease was primarily due to a $6.5 million decrease from the Appalachia system as a result of our May 2009 contribution of the majority of the system to Laurel Mountain, a joint venture in which we have a 49% ownership interest. After the contribution, we recognized our ownership interest in the net income of Laurel Mountain as equity income on our consolidated statements of operations.
Other income (loss), net, including the impact of certain gains and losses recognized on derivatives, was a gain of $10.5 million for the three months ended June 30, 2010, which represents a favorable movement of $26.2 million from the prior year period loss of $15.6 million. We enter into derivative instruments principally to hedge our forecasted natural gas, NGLs and condensate sales against the variability in expected future cash flows attributable to changes in market prices. See further discussion of derivatives under Item 3: Quantitative and Qualitative Disclosures About Market Risk.
General and administrative expense, including amounts reimbursed to affiliates, decreased $0.3 million to $6.2 million for the three months ended June 30, 2010 compared with $6.5 million for the prior year period. The decrease was primarily due to a $0.3 million decrease in salaries and wages resulting mainly from a credit to compensation expense related to the fair value of share based awards.
Depreciation and amortization decreased $0.1 million to $22.9 million for the three months ended June 30, 2010. Depreciation in the Mid-Continent segment increased $1.1 million due primarily to expansion capital expenditures incurred subsequent to June 30, 2009, offset by a decrease of $1.2 million in the Appalachia segment due to the sale of assets in the second quarter of 2009.
Interest expense decreased to $24.6 million for the three months ended June 30, 2010 as compared with $26.4 million for the prior year period. This $1.8 million decrease was primarily due to a $2.1 million decrease in amortized deferred finance costs. The decreased amortization of deferred finance costs was due principally to accelerated amortization in the prior year period associated with the retirement of a portion of our term loan with the proceeds from the sale of our NOARK system.
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