In 2003, Daniel Herz was lured away from the lucrative world of investment banking by the challenges and opportunities in the midstream sector. In January 2004, he joined Atlas Energy Inc. and Atlas Pipeline Partners GP LLC, which owns and operates 8,600 miles of active intrastate gas gathering and processing assets in Oklahoma, west Texas, southern Kansas, and Tennessee.

A native of Milwaukee, Wisconsin, Herz studied at Indiana University in Bloomington, Indiana, where he received a bachelor of science in economics. Prior to joining, he was an investment banker with Bank of America Securities, specializing in master limited partnerships (MLPs), where he worked advising companies on mergers and acquisitions as well as financings, equity and debt.

He served as vice president of corporate development of Atlas Energy Inc. and Atlas Pipeline Partners GP LLC from December 2004 and of Atlas Pipeline Holdings GP LLC from its formation in January 2006. Herz has been the senior vice president of corporate development for Atlas Pipeline Partners LP since August 2007. He has also been the senior vice president of corporate development of Atlas Energy Inc., Atlas Pipeline Holdings GP LLC and Atlas Energy Resources LLC since August 2007.

“When you identify opportunities as well as challenges, act.” — Daniel Herz, senior vice president, corporate development, Atlas Pipeline Partners LP

MIDSTREAM: Atlas has a strong shale play growth strategy.

HERZ: We have a tremendous advantage at Atlas Pipeline, because we are incredibly well positioned from an asset perspective, balance sheet perspective, and customer relations perspective. Our midstream assets are located in some of the best basins in the U.S., and are among the most efficient in each area we operate in. If you couple that with our relationship with our E&P business, we feel as though we are poised for substantial growth. We and our E&P affiliate were one of the first to capitalize on Marcellus shale drilling. Our E&P affiliate has a very unique structure and ability to exploit resource plays. Its business is focused in Pennsylvania, Ohio, West Virginia as well as the dry gas portion of the Niobrara, which are areas we, on the midstream side, may look to work with them if they expand their footprint. We know Appalachia, probably as well as anybody, having operated in Pennsylvania and Ohio for many years.

MIDSTREAM: It shows. Your last quarter was a great one.

HERZ: We think that we have substantial reason to be optimistic for this year, next year and in the years to come, because this last quarter didn't even include a benefit of the ownership of the West Texas LPG line. It did include the debt that we incurred to pay for it. However, it did not include the restart of our West Texas 60 MMcf a day facility, it didn't include the cryogenic facility we are adding in Western Oklahoma, that will come out in the second quarter of next year, or our 60 MMcf processing facility that we are building at our Velma system to service the Ardmore shale. Finally, it didn't include the benefit of the additional liquids that we hope to be able to move, when we have capacity relief in West Texas over the coming months. So we're optimistic. We've talked about the growth projects and we expect, on a fully utilized basis, under current contract terms and based on current pricing to achieve approximately $150 million dollars of incremental EBITDA from those growth projects, which is over and above some $190 million of EBITDA on our base business.

MIDSTREAM: What kinds of growing pains are you facing?

HERZ: Some of the challenges the industry faces include getting a skilled and trained workforce to be able to execute on the billions of dollars that are going to be spent in the midstream business. I think as more infrastructure is built and is being built, getting that skilled workforce is going to be a long-lasting challenge. That said, I think that it's one of the great opportunities this country has, because with 9% unemployment or more, and considering that the manufacturing world has changed, I think energy and the midstream offers itself as the new manufacturing business. It offers people new job avenues.

MIDSTREAM: Any lessons learned?

HERZ: When you identify opportunities as well as challenges, act. I think it's a real truism because it's easy to consider, and over-think, and then the opportunity is past. Or the challenge has grown to the point that it's a problem.