HPGP Hiland Holdings GP, LP (MM)

ENID, Okla., July 23 /PRNewswire-FirstCall/ -- Hiland Holdings GP, LP (NASDAQ:HPGP) and Hiland Partners, LP (NASDAQ:HLND) (the "Partnership") today updated the status of the Partnership's product sales to certain affiliates of SemGroup, L.P. in response to the bankruptcy of SemGroup, L.P. and certain of its affiliates ("SemGroup"). As disclosed in the Partnership's public filings with the Securities and Exchange Commission, the Partnership has historically sold natural gas liquids and condensate that are produced at its Bakken and Badlands plants and gathering systems to SemGroup. The Partnership currently has an account receivable of approximately $8 million from SemGroup relating to product sales made during June 2008 and estimates additional uninvoiced product sales of approximately $5 million from July 1 through July 18, 2008. Any potential accounts receivable write-off related to the Partnership's exposure to SemGroup is not expected to cause the Partnership to be out of compliance with its covenants under its credit facility or impact its liquidity position in any material respect. The Partnership has made temporary arrangements for its product sales while assessing its options in light of SemGroup's bankruptcy. The Partnership does not anticipate that the SemGroup bankruptcy will cause it to lower its distribution guidance or impede the execution of its current growth capital expenditure program. About the Hiland Companies Hiland Partners, LP is a publicly traded midstream energy partnership engaged in gathering, compressing, dehydrating, treating, processing and marketing natural gas, and fractionating, or separating, natural gas liquids, or NGLs. The Partnership also provides air compression and water injection services for use in oil and gas secondary recovery operations. The Partnership's operations are primarily located in the Mid-Continent and Rocky Mountain regions of the United States. Hiland Partners, LP's midstream assets consist of fourteen natural gas gathering systems with approximately 2,030 miles of gathering pipelines, five natural gas processing plants, seven natural gas treating facilities and three NGL fractionation facilities. The Partnership's compression assets consist of two air compression facilities and a water injection plant. Hiland Holdings GP, LP owns the two percent general partner interest, 2,321,471 common units and 3,060,000 subordinated units in Hiland Partners, LP, and the incentive distribution rights of Hiland Partners, LP. This press release may include certain statements concerning expectations for the future that are forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statements to reflect new information or events. The information contained in this press release is available on the Partnership's website at http://www.hilandpartners.com/. DATASOURCE: Hiland Partners, LP CONTACT: Matt Harrison Vice President Finance of Hiland Partners, LP, +1-580-242-6040 Web site: http://www.hilandpartners.com/

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