Atlas Pipeline Partners | Investor Relations : News Release.

Atlas Pipeline Partners | Investor Relations : News Release.

The two news releases linked above give the first indications of the progress for Atlas Pipeline Partners (APL: 36.23 -0.71 -1.92%) to deleverage the company. When the company released their quarterly earnings report a little over a month ago, management said they were in negotiation to sell all or part of 3 different company assets to raise cash and pay down debt. It looks like 2 of the deals are complete and I would say they were pretty successful.

First, APL has sold 51% of their Marcellus shale gathering network for $90 million in cash plus an additional $25 million obligation to be paid later.

The second was the sale of their NOARK natural gas system for $300 million.

So the company has raised almost $400 million in asset sales so far. At the end of 2008 APL had long term debt of approximately $1.5 billion, so they have raised enough to pay off about a quarter of the debt. The big question for shareholders is whether the company can sustain the 38ยข distribution. If they can, the shares which are currently yielding over 30% should move up significantly.

I currently own some Atlas Energy (ATN: 0.00 N/A N/A) and I am now taking a close look at APL.