Atlas Pipeline Holdings, L.P. Q1 2009 Earnings Call Transcript

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2009-05-11 11:17:27.0

Tags: Capital Market, Call Transcript, Wachovia Corp., Earnings, Investment, Financial Services, Finance, Seeking Alpha, Atlas Pipeline Holdings LP

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Sharon Lui - Wachovia Capital Markets, LLC.

Sharon Lui - Wachovia Capital Markets, LLC

I'm just wondering if you could provide some more color on your outlook for volumes given where natural gas prices are today?

Glenn Powell

I'll just take it system by system. Looking at our West Texas facility, we did about 156 million a day and, as is the case on all of our systems, we're working creatively with our producers to find ways to bring gas in. We're also working with some of our smaller gatherer-processors, looking at their businesses and rationalizing whether it makes more sense for them to shut down and bring gas into our system. So just looking forward on the West Texas facility as well as our other systems, obviously rigs have been put down, but we've been able to creatively find ways to bring gas to each one of our systems.

Looking at our Velma system with the shale play, it continues to grow. As I mentioned earlier, we're doing about 80 million a day right now and there continues to be quite a bit of activity with a lot of working rigs in and around the system.

Looking at our Western Oklahoma facilities, Chesapeake and Sand Ridge were our largest producers last year. On our Chaney Dell facility, they've obviously laid down their rigs; however, we have been able to bring in additional volumes from other points without spending much of our capital.

Looking at our Elk City system, the largest producer, Sanguine, ConocoPhillips, they've remained pretty steady up to date.

Sharon Lui - Wachovia Capital Markets, LLC

So would it be fair to say that you're just expecting flat volumes from Q1 to a modest decline?

Glenn Powell

I can tell you that we have a lot of projects, that we're working with a lot of our customers to continue to grow the volumes or at least maintain the volumes. Obviously, I'm not going to give you a guarantee, but thankfully we do have some options on things that we can do to help supplement the lack of new drilling.

Sharon Lui - Wachovia Capital Markets, LLC

Turning to expenditures, do you have a number for '09 growth CapEx and maintenance CapEx?

Matt Jones

Sharon, I think that, as Glenn had said in his remarks, the first quarter of this year we believe represents the high mark in terms of CapEx for the year.

 

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