Sounds like there is the potential for 2013 to have APL reach 300 MM+ in EBIDA. All of that isn't DCF but I see no reason that something around .75/quarter for APL is out of reach and we start getting more than 50% (in practical terms through our 2% GP, 48% IDR over .60, and 10% outright APL unit ownership). We should start to see significant increases in EBIDA 4th Q of 2012 at APL if I listened correctly.
Thanks for posting the link.
Look for 25,000/bpd incremental capacity loop build-out on NGL pipeline!
Other projects in the wings. NGL prices slightly better than $1.25.
Definitely worth a close listen.
Worth a listen,
Mentions the refrigeration plant again as a stopgap to try to keep servicing producers. Better info on Velma and expected volumes in OK and TX next year.
Very useful for those invested in APL or ATLS. Sounds like they will do everything possible to bring the 200 million a day OK expansion on early but aiming for July.
When they first talked about the expansion they also included a new 35 million a day refrigeration plant as a stop gap measure to keep up with producers. It is stated in the first 6 minutes of the 2nd Q conference call and then it has been quiet about that plant.
Another question: The APL expansion is 200 MCF West OK, 60 MCF West Texas, 60 MCF Woodford. Yet the figure being quoted is an expansion of 355 MCF total. Can you account for the difference?
Ridin' out the storm at the Jersey shore!
The 200 million expansion won't be in service until the middle of next year so impact in the 3rd Q. I would expect APL will start to give some guidance in February about the next years distribution. My self I think APL could end the 2012 at a $0.75 quarterly distribution rate. Very compelling for holders of ATLS and APL.
Keeping my fingers crossed the economy does not derail this.
I reviewed it quickly. The only update from the May presentation seems to be the amount spent to date on the capex program previously announced; i.e. they have spent $150 million out of the $400 million planned capex.
Anyone find anything new besides this?
Might look at the new presentation for APL also.
New info on contracts and by pass gas. The 60 million a day by pass gas is significant. The new wells in OK have initial production of 1 million a day in gas. It is likely the new 200 million plant will be over 1/2 full when started up.. Check out Sandrige and CHK drilling plans.. Rough margin on gas is $1 per thousand feet processed. 60 million a day works out to about $0.40 annual gross margin. West Texas is increasing at a rate of 40 million a day per year.
Just hope product prices stay healthy.