Atlas Pipeline Holdings, L.P. Q3 2009 Earnings Call Transcript

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2009-11-04 11:00:25.0

Tags: Barclays Plc., Call Transcript, Earnings, Seeking Alpha, Atlas Pipeline Holdings LP

Question-and-Answer Session

Operator

Thank you. (Operator instructions). And our first question comes from the line of Helen Ryoo from Barclays Capital. Please proceed.

Helen Ryoo -- Barclays Capital

Good morning. Thank you. My first question is your EBITDA of 37 million that included 19 million of realized hedge losses and then your adjusted EBITDA of 29 million had 6.7 million of noncash derivative expense. So, in total did you have a hedge impact of 25.7 million in the third quarter? Is that the right way to look at it?

Eric Kalamaras

No, it’s not. Helen, this is Eric Kalamaras. We'd a total cash impact of $19 million for the quarter, primarily comprised of $14 million of the gas swaps and there is another residual portion of NGL some legacy commodity unwind.

Helen Ryoo -- Barclays Capital

Okay, then what is that 6.7 million non-cash derivative expense?

Eric Kalamaras

We're checking for you. While we're looking do you have another question?

Helen Ryoo -- Barclays Capital

Yes, and then another question is just about your Appalachian build-out. With the drilling program going on with the key producers behind your system how much gathering pipeline capacity is currently being built out and what is your expectations for next year? Also, how much capital is required to do that? And how much is APL allowed to spend up there based on your credit agreement. My understanding is about 10 million per year in north Marcellus. But you also have 25 million note with WNB, so, just wanted to see how much you could spend up there given everything going on?

Gene Dubay

Sure, I'll take the latter part of that. With the $25.5 million note effectively amortized over three years the credit agreement provides for $10 million carve out for Laurel Mountain, so coupled with the notes that will give you roughly another $8 million a year. So $18 million is the effective capital spending under the credit agreement as we stand today.

Helen Ryoo -- Barclays Capital

Okay. For next year?

Gene Dubay

Correct.

Helen Ryoo -- Barclays Capital

And does that include the $25 million from WNB?

Glenn Powell

Yes, this change maybe, $25 million is the note which we get eight year in amortization, because that note is already starting to amortize, we get closer to 16 in turn to that amortization. So our number that we can deliver to the partnership per our share without any other participations closer to around $26 million for the term of next year.

 

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