Resource America, Inc.
1521 Locust Street - 5th Floor
Philadelphia, PA 19102
(215) 546-5388 (facsimile)
Resource America, Inc. Announces Initial Public Offering of Atlas Pipeline Partners, L.P.
Philadelphia, PA, 1/27/2000 - Resource America, Inc.(NASDAQ:REXI)(the "Company") announces that its energy finance subsidiary, Atlas America, Inc., sold a minority interest (47%) of its natural gas gathering system through an initial public offering of 1,500,000 common units of Atlas Pipeline Partners, L.P. (AMEX:APL) (the "Partnership") at a price of $13 per unit - a total of $19.5 million. Resource America retains a 53% interest in the Partnership and a subsidiary of Atlas America will serve as the General Partner of the Partnership. Assuming the underwriters exercise the over-allotment, the Company will have sold a 49% interest for a total of $22.4 million and will have retained a 51% interest.
Atlas Pipeline Partners, L.P. was formed to acquire an interest in an Atlas America's existing natural gas gathering pipeline system located in Eastern Ohio, Western Pennsylvania and Western New York. The Partnership will earn revenue for the transportation of natural gas from more than 3,300 wells currently connected to its 890-mile long pipeline system. The Partnership will seek to add transportation volume through the addition of new wells and through the acquisition of other gathering systems in adjacent gas producing areas.
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release.