Atlas Pipeline Partners Announces Long Term Agreement With XTO Energy
Friday, December 2, 2011
- Atlas Pipeline entered into an agreement with XTO Energy to provide natural gas gathering and processing services for up to 60 million cubic feet per day.
Atlas Pipeline Partners, L.P. announced that it has entered into a long-term, fee-based agreement with XTO Energy Inc.a subsidiary of ExxonMobil, to provide natural gas gathering and processing services for up to an incremental 60 million cubic feet per day from the Woodford Shale region of Oklahoma to its Velma processing facility in Velma, OK. Under the agreement, APL will provide gathering and processing services for XTO production in the liquids-rich area within the Woodford Shale. The agreement also supports APL's previously announced expansion of its Velma system.
Article Tags XTO Energy Inc. United States North America Operations Update
Eugene N. Dubay, Chief Executive Officer of APL stated, 'We are pleased to enter into this long-term agreement with XTO with respect to production in the area around our Velma facility. Activities in the area have increased over the past year and we are adding capacity to address the needs of our producer customers. We are excited to work with them on their development plans and are pleased to be adding de-risked cash flows to the business through this arrangement,' stated Eugene N. Dubay, Chief Executive Officer of APL. .
Terry Schultz, Senior Vice President of Marketing, XTO Energy said, "This agreement will help provide XTO Energy the necessary infrastructure to operate effectively in the Woodford Shale and access markets beyond the region,"
APL previously announced a 60 mmcfd expansion of the Velma facility on May 12, 2011. The cryogenic facility is expected to be brought in-service in the middle of 2012. This agreement with XTO Energy will utilize this new facility, which will bring the name plate processing capacity of the Velma facility to 160 mmcfd after the expansion is completed.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More