Exhibit 99.1

Niska Gas Storage Partners LLC Announces Second Quarter Financial Results for Fiscal 2013

HOUSTON, TEXAS — October 31, 2012 - Niska Gas Storage Partners LLC (NYSE:NKA) (“Niska” or “the Company”) reported today financial results for the quarter and six months ended September 30, 2012. The Company also provided an update on its current business environment and outlook.

Financial Results

Adjusted EBITDA (as defined below) for Niska’s second quarter ended September 30, 2012, was $36.3 million compared to $30.2 million for the fiscal quarter ended September 30, 2011. For the six months ended September 30, 2012, Adjusted EBITDA was $89.1 million compared to $68.8 million in the six months ended September 30, 2011. Cash available for distribution (as defined below) was $19.6 million and $56.9 million for the three month and six month periods ended September 30, 2012, compared to $11.2 million and $32.0 million for the comparable periods last year. In the three-month and six-month periods ended September 30, 2012, Adjusted EBITDA included the benefits of approximately $5.1 million and $6.4 million, resulting from inventory write-downs recorded by the company in the quarters ended March 31, 2012 and June 30, 2012.  Niska’s net losses were $15.4 million and $52.7 million, respectively, for the three months and six month periods ended September 30, 2012, compared to net earnings of $27.6 million and $32.2 million for the comparable periods last year.  Loss per unit was $0.22 and $0.76 for the three and six month periods ended September 30, 2012 compared to earnings of $0.40 and $0.47 per unit, respectively, for the three months and six months ended September 30, 2011.

Operations and Outlook

“Based on our results for the first six months, Niska has performed well in a challenging market environment,” said Simon Dupéré, President and Chief Executive Officer. “Recent natural gas market trends have persisted, including a moderation of natural gas supplies and increased demand resulting from hot summer weather and continued coal-to-gas switching by power generators.  These factors have resulted a continued narrowing of seasonal storage spreads with modest market volatility.  However, we have locked in approximately 95% of our estimated revenues for the year at the midrange of our guidance, we are maintaining our previous guidance for the fiscal year ending March 31, 2013 of Adjusted EBITDA of $130 million to $140 million, and revising our Cash Available for Distribution guidance from $62 million to $72 million to $65 million to $75 million.  These estimates exclude any beneficial impact of the inventory write-downs recorded in the quarters ended March 31, 2012 and June 30, 2012.”  Mr. Dupéré continued, “We are also pleased to announce the completion of an additional four 4 billion cubic feet (“Bcf”) of capacity at our AECO facilities in Alberta.  This capacity was made available to our customers in the quarter ended September 30, 2012.  In addition, we recently filed our application with the California Public Utilities Commission for an additional 25 Bcf of permitted capacity at our Wild Goose facility in Northern California, and we also received approval from the Alberta Energy Resources Conservation Board for a potential gas storage project at our Sundance joint venture in Central Alberta.  These projects position us for significant low-cost capacity growth should market conditions improve.”

Distributions

Niska today announced a cash distribution of $0.35 per common unit. The distribution will be payable on Thursday, November 15, 2012 to common unitholders of record at the close of business on Thursday, November 8, 2012. This distribution represents the minimum quarterly distribution of $0.35 per unit, or $1.40 per common unit on an annualized basis, as set forth in Niska`s operating agreement and is unchanged from the preceding quarter. The Company continued the suspension of payment of distributions on its subordinated units.

Earnings Call

Niska will host a conference call detailing its annual results on Wednesday, October 31, 2012, at 10:00 a.m. Eastern Daylight Time (9:00 a.m. CDT). This call will be webcast by Thomson Reuters and can be accessed at Niska’s website at www.niskapartners.com.

If you are unable to participate in the webcast of the earnings call, you may access the live conference call by dialing the following numbers:

A telephonic replay can be accessed until midnight, November 7, 2012 at the following numbers:

In addition, an electronic replay and PDF transcript will be available on Niska’s website in the Investor Center section under the Presentations and Webcasts tab.

About Niska

Niska is the largest independent owner and operator of natural gas storage in North America, with strategically located assets in key natural gas producing and consuming regions. Niska owns and operates three facilities, including the AECO Hub(TM) in Alberta, Canada; Wild Goose in California; and Salt Plains in Oklahoma. Niska also contracts gas storage capacity on the Natural Gas Pipeline Company of America system. In total, Niska owns or contracts approximately 225.5 Bcf of gas storage capacity.

Forward Looking Statements

This press release includes “forward-looking statements” - that is, statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact.  In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words. Our estimates of future Adjusted EBITDA and Cash Available for Distribution, as well as our expectation regarding expansion capital expenditures for our fiscal year, are forward-looking statements. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Among these risks and uncertainties are (1) changes in general economic conditions; (2) our level of exposure to the market value of natural gas storage services could adversely affect our revenues and cash available to make distributions; (3) competitive conditions in our industry; (4) actions taken by third-party operators, processors and transporters; (5) changes in the availability and cost of capital; (6) operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; (7) the effects of existing and future laws and governmental regulations; (8) the effects of future litigation; and (9) other factors and uncertainties inherent in the development and operation of natural gas storage facilities. Other factors that are not described that are unknown or unpredictable could also have a material adverse effect on future results.  For further discussion of risks and uncertainties, you should refer to Niska’s filings with the United States Securities and Exchange Commission. Actual results and future events could differ materially from those anticipated in such statements. Niska undertakes no obligation, and does not intend, to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

*****

Non-GAAP Financial Measures

Niska uses and discloses the financial measures “Adjusted EBITDA” and “Cash Available for Distribution” in this press release.  Niska defines Adjusted EBITDA as net earnings before interest, income taxes, depreciation and amortization, unrealized risk management gains and losses, loss on extinguishment of debt, foreign exchange gains and losses, inventory impairment write-downs, gains and losses on asset dispositions, asset impairments (including goodwill) and other income.  Niska defines Cash Available for Distribution as Adjusted EBITDA reduced by interest expense (excluding amortization of deferred financing costs), income taxes paid, maintenance capital expenditures and other income.  Niska’s Adjusted EBITDA and Cash Available for Distribution are not presentations made in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”).  Niska’s management utilizes Adjusted EBITDA and Cash Available for Distribution as key performance measures in order to assess:

·                                          the financial performance of Niska’s assets, operations and return on capital without regard to financing methods, capital structure or historical cost basis;

·                                          the ability of Niska’s assets to generate cash sufficient to pay interest on its indebtedness and make distributions to its equity holders;

·                                          repeatable operating performance that is not distorted by non-recurring items or market volatility; and

·                                          the viability of acquisitions and capital expenditure projects.

The GAAP measure most directly comparable to Adjusted EBITDA and Cash Available for Distribution is net earnings. For a reconciliation of Adjusted EBITDA to net earnings, please see the schedule provided in the attached pages.  This

press release contains forward-looking estimates of Adjusted EBITDA and Cash Available for Distribution for the fiscal year ending March 31, 2013. Reconciliations to GAAP net earnings are not provided for these forward-looking estimates because GAAP net earnings for the fiscal year ending March 31, 2013 are not accessible. Niska is able to estimate interest expense, income tax benefits, depreciation and amortization, inventory write-downs, impairments of assets (including goodwill), losses on extinguishment of debt, foreign exchange gains and losses and other income.  However, the Company is unable to predict future unrealized risk management gains and losses and these amounts could be material, such that the amount of net earnings would vary substantially from the amount of projected Adjusted EBITDA and Cash Available for Distribution.

Niska believes that investors benefit from having access to the same financial measures used by Niska’s management. Further, Niska believes that these measures are useful to investors because they are one of the bases for comparing Niska’s operating performance with that of other companies with similar operations, although Niska’s measures may not be directly comparable to similar measures used by other companies.

This information is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Under rules applicable to publicly-traded partnerships, our distributions to non-U.S. unitholders are subject to withholding tax at the highest effective applicable rate to the extent attributable to income that is effectively connected with the conduct of a U.S. trade or business. Given the uncertainty at the time of making distributions regarding the amount of any distribution that is attributable to income that is so effectively connected, we intend to treat all of our distributions as attributable to our U.S. operations, and as a result, the entire distribution will be subject to withholding

Contact

Niska Gas Storage Partners LLC
Investor Relations:
Brandon Tran, Investor Relations Associate or

Vance E. Powers, Chief Financial Officer
(403) 513-8600

NISKA GAS STORAGE PARTNERS LLC

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(in thousands of U.S. dollars, except for per unit amounts)

(unaudited)

NISKA GAS STORAGE PARTNERS LLC

SELECTED FINANCIAL DATA AND NON-GAAP RECONCILIATIONS

(in thousands of U.S. dollars, except capacity amounts)

(unaudited)