##### 



Exhibit 99.1
 (COPANO ENERGY LOGO)
    
    News Release
 Contacts:
    
    Matt Assiff, SVP & CFOCopano Energy, L.L.C.713-621-9547FOR IMMEDIATE RELEASEJack Lascar /
jlascar@drg-e.comAnne Pearson /
apearson@drg-e.comDRG&E / 713-529-6600
 COPANO ENERGY REPORTS SECOND QUARTER 2007 RESULTS
 Volume Throughput Continues to Grow
   Second Quarter Financial Results
  Page 1 of 12




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##### 



Second Quarter Operating Results by Business Segment
 Mid-Continent Operations
   Page 2 of 12




---



##### 



Texas Gulf Coast Pipelines
   Texas Gulf Coast Processing
   Corporate
  Page 3 of 12




---



##### 



Year-To-Date Financial Results
   Unit Distributions
  Page 4 of 12




---



##### 



Conference Call
   Use of Non-GAAP Financial Measures
   Page 5 of 12




---



##### 




    
    the financial performance of Copanos assets without regard to financing methods,
capital structure or historical cost basis;
    
    the ability of Copanos assets to generate cash sufficient to pay interest costs and
support indebtedness;
    
    Copanos operating performance and return on capital as compared to those of other
companies in the midstream energy sector, without regard to financing or capital
structure; and
    
    the viability of acquisitions and capital expenditure projects and the overall rates
of return on alternative investment opportunities.
  plus
 Page 6 of 12




---



##### 



This news release may include forward-looking statements as defined by the Securities
and Exchange Commission. These statements are based on certain assumptions made by the Company
based on managements experience and perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate in the circumstances. These
statements include, but are not limited to, statements with respect to future distributions. Such
statements are subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause the Companys actual results to differ
materially from those implied or expressed by the forward-looking statements. These risks include
an inability to obtain new sources of natural gas supplies, the loss of key producers that supply
natural gas to the Company, key customers reducing the volume of natural gas and natural gas
liquids they purchase from the Company, a decline in the price and market demand for natural gas
and natural gas liquids, the incurrence of significant costs and liabilities in the future
resulting from the Companys failure to comply with new or existing environmental regulations or an
accidental release of hazardous substances into the environment and other factors detailed in the
Companys Securities and Exchange Commission filings.
  tables to follow 
 Page 7 of 12




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##### 



COPANO ENERGY, L.L.C. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(in thousands, except per unit information)Revenue:Natural gas sales
    
    $
    140,052
    
    
    $
    103,826
    
    
    $
    251,329
    
    
    $
    231,806Natural gas liquids sales
    
    
    116,025
    
    
    
    95,676
    
    
    
    203,912
    
    
    
    171,002Transportation, compression and processing fees
    
    
    4,192
    
    
    
    3,435
    
    
    
    8,440
    
    
    
    7,255Condensate and other
    
    
    21,451
    
    
    
    6,690
    
    
    
    29,027
    
    
    
    13,524Total revenue
    
    
    281,720
    
    
    
    209,627
    
    
    
    492,708
    
    
    
    423,587Costs and expenses:Cost of natural gas and natural gas liquids
    
    
    234,070
    
    
    
    160,766
    
    
    
    405,846
    
    
    
    337,478Transportation
    
    
    1,218
    
    
    
    658
    
    
    
    2,104
    
    
    
    1,427Operations and maintenance
    
    
    9,675
    
    
    
    7,824
    
    
    
    18,173
    
    
    
    15,008Depreciation and amortization
    
    
    9,825
    
    
    
    7,850
    
    
    
    18,295
    
    
    
    15,475General and administrative
    
    
    7,700
    
    
    
    5,736
    
    
    
    15,216
    
    
    
    11,811Taxes other than income
    
    
    1,029
    
    
    
    544
    
    
    
    1,556
    
    
    
    988Equity in (earnings) loss from unconsolidated affiliates
    
    
    (754
    )
    
    
    101
    
    
    
    (1,618
    )
    
    
    (95
    )Total costs and expenses
    
    
    262,763
    
    
    
    183,479
    
    
    
    459,572
    
    
    
    382,092Operating income
    
    
    18,957
    
    
    
    26,148
    
    
    
    33,136
    
    
    
    41,495Interest and other income
    
    
    705
    
    
    
    343
    
    
    
    1,325
    
    
    
    592Interest and other financing costs
    
    
    (6,179
    )
    
    
    (7,604
    )
    
    
    (11,372
    )
    
    
    (15,787
    )Income before income taxes
    
    
    13,483
    
    
    
    18,887
    
    
    
    23,089
    
    
    
    26,300Provision for income taxes
    
    
    (175
    )
    
    
    
    
    
    
    (1,079
    )
    
    
    Net income
    
    $
    13,308
    
    
    $
    18,887
    
    
    $
    22,010
    
    
    $
    26,300Basic net income per common unit:Net income(1)
    
    $
    0.31
    
    
    $
    0.52
    
    
    $
    0.53
    
    
    $
    0.72Weighted average number of common units(1)
    
    
    42,748
    
    
    
    29,361
    
    
    
    40,556
    
    
    
    29,338Diluted net income per common unit:Net income(1)
    
    $
    0.31
    
    
    $
    0.51
    
    
    $
    0.52
    
    
    $
    0.72Weighted average number of common units(1)
    
    
    43,475
    
    
    
    29,729
    
    
    
    41,199
    
    
    
    29,669
 
 (1)
    
    Net income per common unit and the weighted average number of common units for the
three and six months ended June 30, 2006 have been retroactively adjusted to reflect
a two-for-one split of Copanos common units effective March 30, 2007.




---



##### 



COPANO ENERGY, L.L.C. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended June 30,2007
    
    
    2006(in thousands)Cash Flows From Operating Activities:Net income
    
    $
    22,010
    
    
    $
    26,300Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation and amortization
    
    
    18,295
    
    
    
    15,475Amortization of debt issue costs
    
    
    615
    
    
    
    1,388Equity in earnings from unconsolidated affiliates
    
    
    (1,618
    )
    
    
    (95
    )Distributions from unconsolidated affiliates
    
    
    2,111
    
    
    
    Equity-based compensation
    
    
    1,327
    
    
    
    736Deferred tax provision
    
    
    917
    
    
    
    Other noncash items
    
    
    (20
    )
    
    
    83Changes in assets and liabilities, net of acquisitions:Accounts receivable
    
    
    (16,019
    )
    
    
    22,131Prepayments and other current assets
    
    
    1,315
    
    
    
    748Risk management activities
    
    
    (18,994
    )
    
    
    2,860Accounts payable
    
    
    24,115
    
    
    
    (16,800
    )Other current liabilities
    
    
    6,837
    
    
    
    7,111Net cash provided by operating activities
    
    
    40,891
    
    
    
    59,937Cash Flows From Investing Activities:Additions to property, plant and equipment
    
    
    (40,627
    )
    
    
    (17,602
    )Additions to intangible assets
    
    
    (1,763
    )
    
    
    (184
    )Acquisitions
    
    
    (55,327
    )
    
    
    (712
    )Investment in unconsolidated affiliate
    
    
    
    
    
    
    (10,553
    )Distributions from unconsolidated affiliates
    
    
    381
    
    
    
    Other
    
    
    103
    
    
    
    (437
    )Net cash used in investing activities
    
    
    (97,233
    )
    
    
    (29,488
    )Cash Flows From Financing Activities:Repayments of long-term debt
    
    
    
    
    
    
    (268,000
    )Proceeds from long-term debt
    
    
    94,000
    
    
    
    245,000Repayment of short-term notes payable
    
    
    (1,116
    )
    
    
    (756
    )Deferred financing costs
    
    
    (608
    )
    
    
    (6,296
    )Distributions to unitholders
    
    
    (34,690
    )
    
    
    (20,940
    )Capital contributions from pre-IPO investors
    
    
    5,054
    
    
    
    3,542Proceeds from private placement of common units
    
    
    
    
    
    
    25,000Equity offering costs
    
    
    (481
    )
    
    
    (640
    )Proceeds from option exercises
    
    
    585
    
    
    
    109Net cash provided by (used in) financing activities
    
    
    62,744
    
    
    
    (22,981
    )Net increase in cash and cash equivalents
    
    
    6,402
    
    
    
    7,468Cash and cash equivalents, beginning of year
    
    
    39,484
    
    
    
    25,297Cash and cash equivalents, end of period
    
    $
    45,886
    
    
    $
    32,765




---



##### 



COPANO ENERGY, L.L.C. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 As ofJune 30, 2007
    
    
    December 31, 2006($ in thousands)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    45,886
    
    
    $
    39,484Accounts receivable, net
    
    
    94,233
    
    
    
    67,095Risk management assets
    
    
    9,823
    
    
    
    13,973Prepayments and other current assets
    
    
    2,244
    
    
    
    3,166Total current assets
    
    
    152,186
    
    
    
    123,718Property, plant and equipment, net
    
    
    658,406
    
    
    
    566,927Intangible assets, net
    
    
    137,688
    
    
    
    93,372Investment in unconsolidated affiliates
    
    
    18,428
    
    
    
    19,378Risk management assets
    
    
    23,878
    
    
    
    23,826Other assets, net
    
    
    12,664
    
    
    
    11,837Total assets
    
    $
    1,003,250
    
    
    $
    839,058LIABILITIES AND MEMBERS CAPITALCurrent liabilities:Accounts payable
    
    $
    128,387
    
    
    $
    91,668Notes payable
    
    
    378
    
    
    
    1,495Risk management liabilities
    
    
    5,772
    
    
    
    944Other current liabilities
    
    
    15,570
    
    
    
    11,615Total current liabilities
    
    
    150,107
    
    
    
    105,722Long-term debt
    
    
    349,000
    
    
    
    255,000Deferred tax provision
    
    
    917
    
    
    
    Risk management and other noncurrent liabilities
    
    
    16,774
    
    
    
    5,750Members capital:Common units, no par value, 42,287,541 and
35,190,590 units issued and outstanding as of
June 30, 2007 and December 31,
2006(1), respectively
    
    
    491,714
    
    
    
    480,797Class C units, no par value, 1,579,409 units and
0 units issued and outstanding as of June 30,
2007 and December 31, 2006, respectively
    
    
    54,000
    
    
    
    Subordinated units, no par value, 7,038,252 units
outstanding as of December 31,
2006(1)
    
    
    
    
    
    
    10,379Paid-in capital
    
    
    16,966
    
    
    
    10,585Accumulated (deficit) earnings
    
    
    (9,978
    )
    
    
    2,918Other comprehensive loss
    
    
    (66,250
    )
    
    
    (32,093
    )486,452
    
    
    
    472,586Total liabilities and members capital
    
    $
    1,003,250
    
    
    $
    839,058
 
 (1)
    
    Units outstanding have been retroactively adjusted to reflect a two-for-one split
effective March 30, 2007.




---



##### 



COPANO ENERGY, L.L.C. AND SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006($ in thousands)Total segment gross margin(1)
    
    $
    46,432
    
    
    $
    48,203
    
    
    $
    84,758
    
    
    $
    84,682Operations and maintenance expenses
    
    
    9,675
    
    
    
    7,824
    
    
    
    18,173
    
    
    
    15,008Depreciation and amortization
    
    
    9,825
    
    
    
    7,850
    
    
    
    18,295
    
    
    
    15,475General and administrative expenses
    
    
    7,700
    
    
    
    5,736
    
    
    
    15,216
    
    
    
    11,811Taxes other than income
    
    
    1,029
    
    
    
    544
    
    
    
    1,556
    
    
    
    988Equity in (earnings) loss from unconsolidated affiliates
    
    
    (754
    )
    
    
    101
    
    
    
    (1,618
    )
    
    
    (95
    )Operating income
    
    
    18,957
    
    
    
    26,148
    
    
    
    33,136
    
    
    
    41,495Interest and other financing costs, net
    
    
    (5,474
    )
    
    
    (7,261
    )
    
    
    (10,047
    )
    
    
    (15,195
    )Provision for income taxes
    
    
    (175
    )
    
    
    
    
    
    
    (1,079
    )
    
    
    Net income
    
    $
    13,308
    
    
    $
    18,887
    
    
    $
    22,010
    
    
    $
    26,300Segment gross margin:Mid-Continent Operations
    
    $
    27,887
    
    
    $
    23,732
    
    
    $
    49,288
    
    
    $
    44,167Texas Gulf Coast Pipelines(2)
    
    
    9,920
    
    
    
    9,234
    
    
    
    19,484
    
    
    
    17,884Texas Gulf Coast Processing
    
    
    14,754
    
    
    
    14,825
    
    
    
    24,847
    
    
    
    21,972Corporate(3)
    
    
    (6,129
    )
    
    
    412
    
    
    
    (8,861
    )
    
    
    659Total segment gross margin(1)
    
    $
    46,432
    
    
    $
    48,203
    
    
    $
    84,758
    
    
    $
    84,682Segment gross margin per unit:Mid-Continent Operations:Pipeline throughput ($/MMBtu)(4)
    
    $
    1.49
    
    
    $
    1.49
    
    
    $
    1.39
    
    
    $
    1.44Plant inlet throughput ($/MMBtu)(4)
    
    $
    2.03
    
    
    $
    2.11
    
    
    $
    1.92
    
    
    $
    2.07NGLs produced ($/Bbl)(4)
    
    $
    20.84
    
    
    $
    22.19
    
    
    $
    20.18
    
    
    $
    22.50Texas Gulf Coast Pipelines ($/MMBtu)(2)
    
    $
    0.40
    
    
    $
    0.42
    
    
    $
    0.39
    
    
    $
    0.42Texas Gulf Coast Processing:Inlet throughput ($/MMBtu)(5)
    
    $
    0.29
    
    
    $
    0.33
    
    
    $
    0.24
    
    
    $
    0.24NGLs produced ($/Bbl)(5)
    
    $
    9.69
    
    
    $
    10.82
    
    
    $
    8.40
    
    
    $
    8.47Volumes:Mid-Continent Operations:
Pipeline throughput (MMBtu/d)(4)
    
    
    209,812
    
    
    
    175,349
    
    
    
    197,646
    
    
    
    169,956Plant inlet throughput (MMBtu/d)(4)
    
    
    154,060
    
    
    
    123,874
    
    
    
    143,483
    
    
    
    118,118NGLs produced (Bbls/d)(4)
    
    
    14,969
    
    
    
    11,753
    
    
    
    13,635
    
    
    
    10,845Texas Gulf Coast Pipelines  throughput (MMBtu/d)(2)
    
    
    275,303
    
    
    
    243,086
    
    
    
    277,679
    
    
    
    237,075Texas Gulf Coast Processing:Inlet throughput (MMBtu/d)
    
    
    561,354
    
    
    
    496,350
    
    
    
    566,975
    
    
    
    504,670NGLs produced (Bbls/d)
    
    
    16,724
    
    
    
    15,039
    
    
    
    16,344
    
    
    
    14,331Capital Expenditures:Maintenance capital expenditures
    
    $
    3,092
    
    
    $
    2,076
    
    
    $
    4,463
    
    
    $
    3,926Expansion capital expenditures
    
    
    129,216
    
    
    
    9,335
    
    
    
    148,169
    
    
    
    16,398Total capital expenditures
    
    $
    132,308
    
    
    $
    11,411
    
    
    $
    152,632
    
    
    $
    20,324Operations and maintenance expenses:Mid-Continent Operations
    
    $
    5,144
    
    
    $
    4,048
    
    
    $
    9,514
    
    
    $
    7,916Texas Gulf Coast Pipelines
    
    
    2,382
    
    
    
    1,900
    
    
    
    4,415
    
    
    
    3,529Texas Gulf Coast Processing
    
    
    2,149
    
    
    
    1,876
    
    
    
    4,244
    
    
    
    3,563Total operations and maintenance expenses
    
    $
    9,675
    
    
    $
    7,824
    
    
    $
    18,173
    
    
    $
    15,008
 
 (1)
    
    Total segment gross margin is a non-GAAP financial measure. For a reconciliation of
total segment gross margin to its most directly comparable GAAP measure, please read
Non-GAAP Financial Measures.(2)
    
    Excludes results and volumes associated with Copanos interest in Webb/Duval Gatherers.
Gross volumes transported by Webb/Duval Gatherers were 107,565 MMBtu/d and 111,172 MMBtu/d,
net of intercompany volumes, for the three months ended June 30, 2007 and 2006,
respectively. Gross volumes transported by Webb/Duval Gatherers were 105,479 MMBtu/d and
115,241 MMBtu/d, net of intercompany volumes, for the six months ended June 30, 2007 and
2006, respectively.(3)
    
    The Corporate segment gross margin includes results attributable to Copanos commodity
risk management activities.(4)
    
    Segment gross margin per unit amounts for the Mid-Continent Operations segment represent
the segment gross margin divided by the pipeline throughput, inlet throughput or NGLs
produced, as appropriate. Plant inlet throughput and NGLs produced represent total volumes
processed and produced by the Mid-Continent Operations segment at all plants, including
plants owned by the Mid-Continent Operations segment and plants owned by third parties.
Plant inlet throughput averaged 88,730 MMBtu/d and NGLs produced averaged 9,109 barrels per
day for the three months ended June 30, 2007 for plants owned by the Mid-Continent
Operations segment. Plant inlet throughput averaged 81,257 MMBtu/d and NGLs produced
averaged 7,976 barrels per day for the three months ended June 30, 2006 for plants owned by
the Mid-Continent Operations segment. Plant inlet throughput averaged 87,153 MMBtu/d and
NGLs produced averaged 8,753 barrels per day for the six months ended June 30, 2007 for
plants owned by the Mid-Continent Operations segment. Plant inlet throughput averaged
76,730 MMBtu/d and NGLs produced averaged 7,275 barrels per day for the three months ended
June 30, 2006 for plants owned by the Mid-Continent Operations segment. This data excludes
results and volumes associated with Copanos interest in Southern Dome.(5)
    
    Represents the Texas Gulf Coast Processing segment gross margin divided by the total inlet
throughput or NGLs produced, as appropriate. Page 11 of 12




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##### 



Non-GAAP Financial Measures
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Reconciliation of total segment gross margin to operating income:Operating income
    
    $
    18,957
    
    
    $
    26,148
    
    
    $
    33,136
    
    
    $
    41,495Add: Operations and maintenance expenses
    
    
    9,675
    
    
    
    7,824
    
    
    
    18,173
    
    
    
    15,008Depreciation and amortization
    
    
    9,825
    
    
    
    7,850
    
    
    
    18,295
    
    
    
    15,475General and administrative expenses
    
    
    7,700
    
    
    
    5,736
    
    
    
    15,216
    
    
    
    11,811Taxes other than income
    
    
    1,029
    
    
    
    544
    
    
    
    1,556
    
    
    
    988Equity in (earnings) loss from unconsolidated affiliates
    
    
    (754
    )
    
    
    101
    
    
    
    (1,618
    )
    
    
    (95
    )Total segment gross margin
    
    $
    46,432
    
    
    $
    48,203
    
    
    $
    84,758
    
    
    $
    84,682Reconciliation of EBITDA to net income:Net income
    
    $
    13,308
    
    
    $
    18,887
    
    
    $
    22,010
    
    
    $
    26,300Add: Depreciation and amortization
    
    
    9,825
    
    
    
    7,850
    
    
    
    18,295
    
    
    
    15,475Interest and other financing costs
    
    
    6,179
    
    
    
    7,604
    
    
    
    11,372
    
    
    
    15,787Provision for income taxes
    
    
    175
    
    
    
    
    
    
    
    1,079
    
    
    
    EBITDA
    
    $
    29,487
    
    
    $
    34,341
    
    
    $
    52,756
    
    
    $
    57,562Reconciliation of EBITDA to cash flows from operating activities:Cash flow provided by operating activities
    
    $
    16,901
    
    
    $
    37,082
    
    
    $
    40,891
    
    
    $
    59,937Add: Cash paid for interest and other financing costs
    
    
    5,873
    
    
    
    7,173
    
    
    
    10,756
    
    
    
    14,399Equity in earnings (loss) from unconsolidated affiliates
    
    
    754
    
    
    
    (101
    )
    
    
    1,618
    
    
    
    95Distributions from unconsolidated affiliates
    
    
    (2,111
    )
    
    
    
    
    
    
    (2,111
    )
    
    
    Risk management activities
    
    
    21,609
    
    
    
    (522
    )
    
    
    18,994
    
    
    
    (2,860
    )Increase in working capital and other
    
    
    (13,539
    )
    
    
    (9,291
    )
    
    
    (17,392
    )
    
    
    (14,009
    )EBITDA
    
    $
    29,487
    
    
    $
    34,341
    
    
    $
    52,756
    
    
    $
    57,562Reconciliation of net income to distributable cash flow:Net income
    
    $
    13,308
    
    
    $
    18,887
    
    
    $
    22,010
    
    
    $
    26,300Add: Depreciation and amortization
    
    
    9,825
    
    
    
    7,850
    
    
    
    18,295
    
    
    
    15,475Amortization of debt issue costs
    
    
    306
    
    
    
    431
    
    
    
    615
    
    
    
    1,388Equity-based compensation
    
    
    686
    
    
    
    415
    
    
    
    1,327
    
    
    
    736G&A reimbursement from pre-IPO unitholders
    
    
    2,116
    
    
    
    464
    
    
    
    5,516
    
    
    
    2,626Distributions from unconsolidated affiliates
    
    
    708
    
    
    
    
    
    
    
    2,492
    
    
    
    Unrealized losses on derivatives
    
    
    1,766
    
    
    
    58
    
    
    
    1,927
    
    
    
    201Deferred taxes and other
    
    
    89
    
    
    
    85
    
    
    
    897
    
    
    
    83Less: Equity in (earnings) loss from unconsolidated affiliates
    
    
    (754
    )
    
    
    101
    
    
    
    (1,618
    )
    
    
    (95
    )Maintenance capital expenditures
    
    
    (3,092
    )
    
    
    (2,076
    )
    
    
    (4,463
    )
    
    
    (3,926
    )Distributable cash flow(1)
    
    $
    24,958
    
    
    $
    26,215
    
    
    $
    46,998
    
    
    $
    42,788Actual quarterly distribution (AQD)(2) (3)
    
    $
    18,739
    
    
    $
    12,460Distributable cash flow coverage of AQD(3)
    
    
    133
    %
    
    
    211
    %
 
 (1)
    
    Prior to any retained cash reserves established by Copanos Board of Directors.(2)
    
    The prior year distribution rate has been retroactively adjusted to reflect the two-for-one split of Copanos common units
effective March 30, 2007.(3)
    
    Reflects actual quarterly distribution of $0.44 per unit for the three months ended June 30, 2007 and $0.375 per unit for
the three months ended June 30, 2006 (as retroactively adjusted to reflect the two-for-one split of Copanos common units
effective March 30, 2007).