Some products are just a fact of life. Water, food and warmth are only a few. There are many ways to go about obtaining these realities with some being easier than others. What is not easy in some instances is getting that need from here to there in an efficient manner. Investing in that transport system can be very lucrative even if it may take some time to develop.
Atlas Pipeline Partners LP, a mid-stream natural gas pipeline gatherer and processing company, works to gather and process natural gas in several leading natural gas regions. It has recently raised over $15 million in warrants and appears to be taking solid advantage within its Arkansas, Oklahoma, Texas and Missouri focus areas.
Although the transported natural gas product is a relatively seasonal one at the moment, one must understand the logistics of moving it and how the transported product is rapidly becoming one of the leading options for future energy options. There are several natural gas “basins” across certain US regions where natural gas is in abundance. Currently, there is a pipeline structure in place where these regions are connected for transport to central processing centers.
This processing capacity is also a consideration as natural gas in not necessarily as clean as one might think and needs to be processed for maximum efficiency. In this regard, Atlas Pipeline is uniquely positioned with a solid 565 mile pipeline structure in the Oklahoma region, a 9,100 mile system within the same region but structured differently and 1,800 miles of pipelines oriented toward the north-eastern US. Strategic processing systems are located throughout the systems. The company’s major basin operations include Anadarko, Arkoma, Golden Trend and Permian with additional operations in New York, Ohio and Pennsylvania.
Although recent reporting periods have shown a decrease in revenues, primarily due to one particular natural gas system, it should be noted that more recent natural gas reports are showing an up-tic. Overall this may be a signal from a colder than expected winter season but also a recognition that the company is well positioned for a likely surge in transportation of natural gas (the company lives and dies on natural gas volume and processing.) The savvy investor may also recognize that in the longer-term natural gas volumes are more than likely to increase substantially and that investing at lower levels and sitting on the investment may be a wise thought to consider.
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