Atlas Pipeline Holdings: Accelerated Growth in the Pipeline

Atlas Pipeline Holdings (AHD) is an unusual company. The company does not directly own any hard assets or have any operations of any significance. Instead, the company holds ownership interests in Atlas Pipeline Partners (APL). Atlas Pipeline Partners is one of the largest natural gas transporters and processors in the United States. Atlas Pipeline Holdings owns 100% of the general partner of Atlas Pipeline Partners and 5.4 million limited partner units of Atlas Pipeline Partners. 

The company’s ownership of Atlas Pipeline Partners' general partner entitles Atlas Pipeline Holdings to incentive distributions, via its ownership of incentive distribution rights (IDRs), which allow Atlas Pipeline Holdings to collect a flexible percent of distributions from Atlas Pipeline Partners depending on the rate that Atlas Pipeline Partners increases its distribution to unit hold