Hiland Partners, LP Announces Series of Hedge Transactions

ENID, Okla., June 30 /PRNewswire-FirstCall/ -- Hiland Partners, LP (Nasdaq:
HLND) (the "Partnership") today announced that it executed a series of hedging
transactions that enhances the Partnership's 2009 cash flows and current
liquidity position.

The hedge transactions involved the unwinding of a portion of existing net
"in-the-money" natural gas swaps, and the entering into of new 2010 Colorado
Interstate Gas ("CIG") natural gas swaps. Hiland received net proceeds of
approximately $3.2 million from the unwinding of the net "in-the-money"
positions, which was used to reduce indebtedness under the Partnership's
senior secured revolving credit facility.

With the execution of these hedge transactions, which will result in an
increase in the Partnership's EBITDA (as defined in the credit agreement) for
the twelve months ending June 30, 2009 and a reduction in the Partnership's
outstanding debt as of June 30, 2009, together with the recent improvement in
natural gas liquids prices, the Partnership management expects the Partnership
to be in compliance with the maximum consolidated funded debt to EBITDA
covenant ratio (the "leverage covenant ratio") contained in the Partnership's
senior secured revolving credit facility as of June 30, 2009. If commodity
prices do not significantly improve above the current forward prices for the
third quarter of 2009, the Partnership could be in violation of the leverage
covenant ratio as early as September 30, 2009, unless the ratio is amended,
the Partnership receives an infusion of equity capital, the Partnership's debt
is restructured or the Partnership is able to monetize additional
"in-the-money" hedge positions.

The tables below detail the net impact of the hedge transactions on the
Partnership's hedge portfolio:

Before June 2009 Hedging Transactions:
--------------------------------------

Net
Average
Fixed
Volume Price
Description and Production Period (MMBtus) (per MMBtu)
--------------------------------------------------------------------------

CIG Natural Gas - Sold Fixed for Floating
Price Swaps:

July 2009 - December 2009 1,068,000 $7.30
January 2010 - December 2010 2,136,000 $8.31

After June 2009 Hedging Transactions:
-------------------------------------
Net
Average
Fixed
Volume Price
Description and Production Period (MMBtus) (per MMBtu)
--------------------------------------------------------------------------

CIG Natural Gas - Sold Fixed for Floating
Price Swaps:

July 2009 - December 2009 1,068,000 $7.30
January 2010 - December 2010 2,136,000 $6.73

About Hiland Partners, LP

Hiland Partners, LP is a publicly traded midstream energy partnership engaged
in purchasing, gathering, compressing, dehydrating, treating, processing and
marketing of natural gas, and fractionating, or separating, and marketing of
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 fifteen natural gas gathering
systems with approximately 2,138 miles of gathering pipelines, six 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.

Forward-Looking Statements

This press release includes certain statements concerning expectations for the
future that are forward-looking statements, including the Partnership's
expectation that it will likely be in compliance with the leverage covenant
ratio at June 30, 2009. 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,
including the risk that the final reported results of operations, including
EBITDA, for the quarter ended June 30, 2009 are different than the
Partnership's expectations. An extensive list of factors that can affect
future results are discussed in the Partnership's Annual Report on Form 10-K,
the Partnership's Form 10-Q for the period ended March 31, 2009 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.

Important Additional Information Regarding the Mergers will be Filed with the
SEC:

In connection with the proposed mergers, the Hiland companies will file a
joint proxy statement and each of Hiland Partners and Hiland Holdings will
file other documents with the SEC. INVESTORS AND SECURITY HOLDERS ARE ADVISED
TO READ THE JOINT PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE HILAND COMPANIES AND THE MERGERS.
Investors and security holders may obtain copies of the joint proxy statement
and other documents that Hiland Partners or Hiland Holdings file with the SEC
(when they are available) free of charge at the SEC's web site at
http://www.sec.gov. The definitive joint proxy statement and other relevant
documents may also be obtained (when available) free of charge on the Hiland
companies' web site at http://www.hilandpartners.com or by directing a request
to either (i) Hiland Partners, LP, 205 West Maple, Suite 1100, Enid, Oklahoma
73701, Attention: Investor Relations (for documents filed by HLND), or (ii)
Hiland Holdings GP, LP, 205 West Maple, Suite 1100, Enid, Oklahoma 73701,
Attention: Investor Relations (for documents filed by HPGP).

Hiland Partners and its directors, executive officers and other members of its
management and employees (including Mr. Hamm) may be deemed participants in
the solicitation of proxies from the unitholders of Hiland Partners and Hiland
Holdings and its directors, executive officers and other members of its
management and employees (including Mr. Hamm) may be deemed participants in
the solicitation of proxies from the unitholders of Hiland Holdings in
connection with the proposed transactions. Information regarding the special
interests of persons who may be deemed to be such participants in the proposed
transactions will be included in the joint proxy statement described above.
Additional information regarding the directors and executive officers of
Hiland Partners and Hiland Holdings is also included in each Hiland company's
Annual Report on Form 10-K for the year ended December 31, 2008, which were
filed with the SEC on March 9, 2009, and subsequent statements of changes in
beneficial ownership on file with the SEC. These documents are available free
of charge at the SEC's web site at http://www.sec.gov and from Investor
Relations at Hiland Partners or Hiland Holdings, as applicable, as described
above.

SOURCE Hiland Partners, LP

Derek Gipson, Director - Business Development and Investor Relations of Hiland
Partners, LP, +1-580-242-6040