0001193125-11-209175.txt : 20110804 0001193125-11-209175.hdr.sgml : 20110804 20110804065035 ACCESSION NUMBER: 0001193125-11-209175 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110803 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110804 DATE AS OF CHANGE: 20110804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Atlas Energy, L.P. CENTRAL INDEX KEY: 0001347218 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION [4922] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32953 FILM NUMBER: 111008605 BUSINESS ADDRESS: STREET 1: 110 W. 7TH, SUITE 2300 CITY: TULSA STATE: OK ZIP: 74119 BUSINESS PHONE: 918-574-3549 MAIL ADDRESS: STREET 1: 110 W. 7TH, SUITE 2300 CITY: TULSA STATE: OK ZIP: 74119 FORMER COMPANY: FORMER CONFORMED NAME: Atlas Pipeline Holdings, L.P. DATE OF NAME CHANGE: 20051219 8-K 1 d8k.htm ATLAS ENERGY, L.P. - FORM 8-K Atlas Energy, L.P. - Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 3, 2011

Commission file number 1-32953

ATLAS ENERGY, L.P.

(Exact name of registrant as specified in its charter)

 

Delaware

   43-2094238

(State of incorporation or organization)

   (I.R.S. Employer Identification No.)

1550 Coraopolis Heights Road, Moon Township, Pennsylvania 15108

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (412) 262-2830

(Former name or former address, if changed since last report)

 

 

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (127 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (27 CFR 240.14d-2 (b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (27 CFR 240.13e-4(c))


Item 2.02

  

Results of Operations and Financial Condition.

  

On August 3, 2011, Atlas Energy, L.P. issued an earnings release announcing its financial results for the second quarter of 2011. A copy of the earnings release is included as Exhibit 99.1 and is incorporated herein by reference.

  

The information provided in this Item 2.02 (including Exhibit 99.1) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference in any filing made by the Registrant pursuant to the Securities Act of 1933, as amended, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.

Item 9.01

  

Financial Statements and Exhibits

 

     

  (d)

  

Exhibits

  
        

99.1

  

Press Release dated August 3, 2011

           

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

ATLAS ENERGY, L.P.

    By:  

Atlas Energy GP, LLC, its general partner

 

August 4, 2011

    By:    

/s/ Sean McGrath

 
       

Sean McGrath

 
       

Chief Financial Officer

 
EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

NEWS RELEASE

 

CONTACT:

 

Brian J. Begley

 

Investor Relations

 

Atlas Energy, L.P.

 

(877) 280-2857

 

(215) 405-2718 (fax)

    

ATLAS ENERGY, L.P. REPORTS OPERATING AND FINANCIAL RESULTS FOR THE SECOND QUARTER 2011

 

   

Atlas Energy reports $26.4 million in Adjusted EBITDA for the second quarter 2011

 

   

Distributable cash flow was $22.7 million for the current quarter, or $0.44 per common unit

 

   

Atlas Energy enhances its senior operating team with additional seasoned technical personnel

Philadelphia, PA – August 3, 2011, Atlas Energy, L.P. (NYSE: ATLS) (“Atlas Energy” or “ATLS”) today reported operating and financial results for the second quarter 2011.

Second Quarter 2011 Highlights & Results

ATLS recognized the following for the second quarter 2011:

 

   

Adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure, of $26.4 million(1);

 

   

Distributable cash flow, a non-GAAP measure, of $22.7 million, or $0.44 per common unit(1);

 

   

ATLS declared a cash distribution of $0.22 per limited partner unit based on the financial results for the second quarter 2011, a $0.11, or 100% increase from the preceding quarter;

 

   

On a GAAP basis, net income of $24.4 million for the second quarter 2011 compared with $15.3 million for the prior year comparable period. The increase over the prior year quarter was due primarily to Atlas Energy’s share of Lightfoot’s recognized gain on its sale of International Resource Partners; and

 

   

Total net production of 36.6 million cubic feet equivalents per day (“mmcfed”).

 

(1) 

A reconciliation of GAAP net income to adjusted EBITDA and distributable cash flow is provided in the financial tables of this release.

Edward E. Cohen, Chief Executive Officer of Atlas Energy, commented, “We are pleased to report our first full quarter of results for Atlas Energy, L.P., and furthermore, we have made significant progress in executing our business plans. Our partnership management business is once again raising funds for our drilling efforts, and we have added seasoned technical leadership to our experienced management team over the past several months in order for us to meet our strategic objectives in the future. Our subsidiary, Atlas Pipeline, also continues to execute on its growth initiatives to expand its facilities in the Mid-Continent and substantially increase cash flows for its unitholders, as well as increasing incentive distributions for Atlas Energy.”

On February 17, 2011, ATLS acquired certain assets and assumed certain liabilities (the “Transferred Business”) from Atlas Energy, Inc., the former owner of ATLS’ general partner. ATLS’ gross margin, adjusted EBITDA and distributable cash flow include the results of operations of the Transferred Business from the date of acquisition. However, in accordance with prevailing accounting principles, all other ATLS financial information, including revenues and net income, are presented combined with those of the Transferred Business for historical periods prior to the date of acquisition, although ATLS did not own the Transferred Business for these periods.


Recent Events

Atlas Energy Credit Facility Borrowing Base Increase

In June 2011, ATLS announced that the lending group on its senior secured credit facility completed its borrowing base redetermination and increased ATLS’ borrowing base from $125 million to $160 million. There were no other changes to the terms of the credit facility. ATLS currently has no amounts borrowed against its credit facility.

Atlas Pipeline Revolving Credit Facility Increase

In July 2011, Atlas Pipeline Partners, L.P. (NYSE: APL) exercised the $100 million accordion feature on its revolving credit facility to increase the capacity from $350 million to $450 million, effective July 8, 2011. The other terms of the APL credit agreement remain unchanged.

Sale of Lightfoot Capital’s International Resource Partners

In March 2011, International Resource Partners, LP (“IRP”), a metallurgical and steam coal business formed by Lightfoot Capital Partners, LP (“Lightfoot”), entered into an agreement to be acquired by James River Coal Company (NASDAQ: JRCC) for $475 million in cash. The transaction closed in June 2011, from which ATLS received net cash proceeds of $13.7 million based on its investment in Lightfoot (gross proceeds were approximately $26 million less cash retained at Lightfoot for future investment). ATLS and its partners formed Lightfoot in 2007 to acquire investments in energy-related assets and businesses. ATLS has a direct and indirect 18% ownership interest in the general partner of Lightfoot. Lightfoot will continue to operate its existing assets and will pursue further opportunities to expand its business.

E&P Operations

Appalachia

 

   

Average net daily production for the second quarter 2011 for the Appalachia segment was 33.0 mmcfed.

 

   

ATLS expects to connect 16 Marcellus horizontal wells, drilled through the partnership management business, during the fourth quarter 2011 and the first quarter 2012. Eight of these Marcellus wells have been drilled to total depth during the second quarter 2011 and in the early third quarter 2011, and three of these wells are in various stages of drilling. Five of these Marcellus wells have been previously drilled and completed and are awaiting pipeline connection.

New Albany/Antrim

 

   

Average net daily production for the New Albany/Antrim segment for the second quarter 2011 was 3.2 mmcfed.

Niobrara

 

   

Average net daily production for the second quarter 2011 for the Niobrara segment was 399 thousand cubic feet equivalents per day (“mcfed”).


Partnership Management Segment

 

   

Partnership management margin(2) contributed $6.2 million to distributable cash flow for the second quarter 2011. Partnership management margin during the period was impacted primarily by the comparable year over year timing of funds raised and capital deployed for the direct investment programs, and the absence of a fall 2010 partnership program due to the pending merger between Atlas Energy, Inc. and Chevron.

 

(2) 

Partnership management margin is comprised of Well Construction and Completion margin, Well Services margin and Administration and Oversight Fee revenues.

Atlas Pipeline Partners, L.P.

 

   

On July 26, 2011, APL declared a cash distribution of $0.47 per unit on its outstanding common limited partner units, representing the cash distribution for the quarter ended June 30, 2011, a $0.07 per unit, or 17.5%, increase from the preceding quarter. ATLS had $2.7 million of cash distributions received from APL during the second quarter 2011, which represented APL’s cash paid based on a $0.40 per unit distribution for the quarter ended March 31, 2011. ATLS will receive cash distributions of $3.7 million from APL on August 12, 2011, the date of payment for the APL second quarter 2011 distribution.

 

   

During the second quarter 2011, APL announced several major organic expansion projects at its Mid-Continent systems that are expected to be substantially accretive to earnings and cash flow. The new projects include a $175 million, 200 million cubic feet per day (“Mmcfd”) expansion of the Western Oklahoma processing system, $15 million for the re-start of a cryogenic skid at Midkiff in West Texas, $75 million for expansion of the Velma system, and an additional $50 million in growth capital for compression, gathering lines, and connections that are expected to be incurred in 2012. A further $85 million has been spent for the purchase of the minority 20% stake in the West Texas LPG Pipeline Limited Partnership, which closed on May 11, 2011. Upon completion of these projects, APL’s EBITDA is expected to increase by approximately $150 million per year, assuming full utilization, continuation of current contractual arrangements and persistence of current prevailing prices.

 

   

At June 30, 2011, ATLS owned a 2.0% general partner interest, all of the incentive distribution rights, and an approximate 10.7% common limited partner interest in APL. ATLS’ financial results are presented on a consolidated basis with those of APL. Non-controlling interests in APL are reflected as income (expense) in ATLS’ consolidated combined statements of operations and as a component of partners’ capital on its consolidated combined balance sheets. A consolidating combined statement of operations and balance sheet has also been provided in the financial tables to this release for the comparable periods presented.

Please refer to the Atlas Pipeline second quarter 2011 earnings release for additional details on its financial results.

Corporate and Other

 

   

Cash general and administrative expense, excluding amounts attributable to APL, was $9.6 million for the second quarter 2011. The current period is presented net with $6.2 million of fees received from the ATLS’ Transition Service Agreement with Chevron Corp. (NYSE: CVX), through which ATLS provides accounting and other services. ATLS will recognize these fees for each of the services provided, which generally extends through the fourth quarter of 2011. Please refer to the consolidating combined statements of operations provided in the financial tables of this release.

 

   

Cash interest expense, excluding amounts attributable to APL, was $0.2 million for the second quarter 2011. In June 2011, ATLS announced that the lending group of its senior secured credit facility completed its borrowing base redetermination and increased ATLS’ borrowing base from $125 million to $160 million. As of June 30, 2011, the Partnership had no amounts outstanding under its revolving credit facility and has a cash position of $108.5 million.


Hedging Summary

 

   

ATLS entered into derivative contracts during the second quarter 2011 for its natural gas and oil production. ATLS currently has approximately 24.2 billion cubic feet equivalents of its future production hedged through 2015. A summary of the ATLS’ current derivative positions as of August 3, 2011 is as follows:

Natural Gas

 

Fixed Price Swaps

        

Production Period

Ended December 31,

   Average
Fixed Price
(per mcf)(a)(b)
     Volumes
(per mcf)(a)
     % Hedged(d)  

2011(c)

   $ 4.85         2,971,429         51

2012

   $ 5.40         5,257,143         45

2013

   $ 5.70         2,971,429         26

2014

   $ 6.02         2,742,857         24

2015

   $ 6.30         2,742,857         24

 

Costless Collars

           

Production Period

Ended December 31,

   Average
Floor Price
(per mcf)(a)(b)
     Average
Ceiling Price
(per mcf)(a)(b)
     Volumes
(per mcf)(a)
     % Hedged(d)  

2011(c)

   $ 4.28       $ 6.01         1,542,857         26

2012

   $ 4.61       $ 6.54         1,828,571         16

2013

   $ 5.13       $ 6.52         2,971,429         25

Crude Oil

 

Costless Collars

           

Production Period

Ended December 31,

   Average
Floor Price
(per bbl)(a)
     Average
Ceiling Price
(per bbl)(a)
     Volumes
(bbls)(a)
     % Hedged(d)  

2011(c)

   $ 90.00       $ 125.31         35,000         57

2012

   $ 90.00       $ 117.91         60,000         49

2013

   $ 90.00       $ 116.40         60,000         49

2014

   $ 80.00       $ 121.25         24,000         20

2015

   $ 80.00       $ 120.75         24,000         20

 

(a) 

“Mcf” represents thousand cubic feet; “bbl” represents barrel.

(b) 

Includes an estimated positive basis differential and Btu (British thermal units) adjustment.

(c) 

Reflects hedges covering the last six months of 2011.

(d) 

Hedge percentages based on Q2 2011 average production rates

* * *

Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Energy, L.P.’s second quarter 2011 results on Thursday, August 4, 2011 at 9:00 am ET by going to the Investor Relations section of Atlas Energy’s website at www.atlasenergy.com. For those unavailable to listen to the live broadcast, the replay of the webcast will be available following the live call on the Atlas Energy website and telephonically beginning at 12:00 p.m. ET on August 4, 2011 by dialing 888-286-8010, passcode: 11137864.

Atlas Energy, L.P. is a master limited partnership which owns an interest in over 8,500 producing natural gas and oil wells, representing over 181 Bcfe of net proved developed reserves. Additionally, Atlas Energy owns and operates the general partner of Atlas Pipeline Partners, L.P. (NYSE: APL), through which it owns a 2% general partner interest, all of the incentive distribution rights and approximately 5.75 million common limited partner units of APL. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.


Atlas Pipeline Partners, L.P. (NYSE: APL) is active in the gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, southern Kansas, and northern and western Texas, APL owns and operates five active gas processing plants as well as approximately 8,600 miles of active intrastate gas gathering pipeline. For more information, visit APL’s website at www.atlaspipeline.com or contact IR@atlaspipeline.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. ATLS cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, ATLS’ plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; changes in commodity prices; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; ATLS’ level of indebtedness; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in ATLS’ reports filed with the U.S. Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Forward-looking statements speak only as of the date hereof, and ATLS assumes no obligation to update such statements, except as may be required by applicable law.


ATLAS ENERGY, L.P.

CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
Revenues:    2011     2010(1)     2011(1)     2010(1)  

Gas and oil production

   $ 17,723      $ 25,230      $ 35,349      $ 50,710   

Well construction and completion

     10,954        43,295        28,679        115,937   

Gathering and processing

     345,734        214,016        625,952        450,562   

Administration and oversight

     1,375        1,867        2,736        3,912   

Well services

     4,855        4,912        10,141        10,092   

Gain (loss) on mark-to-market derivatives(2)

     6,837        5,818        (14,808     10,539   

Other, net

     21,414        3,112        25,767        6,501   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     408,892        298,250        713,816        648,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Gas and oil production

     4,042        6,563        7,963        10,606   

Well construction and completion

     9,284        36,682        24,305        98,243   

Gathering and processing

     293,471        182,827        530,455        378,989   

Well services

     1,674        2,812        4,034        5,275   

General and administrative(1)

     22,239        6,772        38,429        17,313   

Depreciation, depletion and amortization

     27,370        30,115        53,977        57,212   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     358,080        265,771        659,163        567,638   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     50,812        32,479        54,653        80,615   

Gain (loss) on asset sales

     (233     —          255,714        (2,947

Interest expense(1)

     (6,567     (25,119     (24,645     (52,140

Loss on early extinguishment of debt

     (19,574     —          (19,574     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     24,438        7,360        266,148        25,528   

Income (loss) from discontinued operations

     —          7,976        (81     14,757   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     24,438        15,336        266,067        40,285   

Income attributable to non-controlling interests

     (7,925     (688     (219,303     (2,495
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income after non-controlling interests

     16,513        14,648        46,764        37,790   

Income not attributable to common limited partners
(results of operations of the Transferred Business as of and prior to February 17, 2011, the date of acquisition)
(1)

     —          (15,788     (4,711     (40,294
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ 16,513      $ (1,140   $ 42,053      $ (2,504
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners per unit – basic:

        

Income (loss) from continuing operations attributable to common limited partners

   $ 0.31      $ (0.08   $ 0.91      $ (0.16

Income from discontinued operations attributable to common limited partners

     —          0.04        —          0.07   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ 0.31      $ (0.04   $ 0.91      $ (0.09
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners per unit – diluted:

        

Income (loss) from continuing operations attributable to common limited partners

   $ 0.30      $ (0.08   $ 0.89      $ (0.16

Income from discontinued operations attributable to common limited partners

     —          0.04        —          0.07   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ 0.30      $ (0.04   $ 0.89      $ (0.09
  

 

 

   

 

 

   

 

 

   

 

 

 


Weighted average common limited partner units outstanding:

  

      

Basic

     51,235         27,704        45,156        27,704   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted

     53,023         27,704        46,172        27,704   
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners:

         

Income (loss) from continuing operations

   $ 16,513       $ (2,144   $ 42,063      $ (4,366

Income (loss) from discontinued operations

     —           1,004        (10     1,862   
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ 16,513       $ (1,140   $ 42,053      $ (2,504
  

 

 

    

 

 

   

 

 

   

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011. However, since the results of operations of the Transferred Business prior to its acquisition date are not attributable to the common limited partners of the Partnership, these amounts have been deducted to obtain net income (loss) attributable to common limited partners for the respective period. Also, the historical results of the Transferred Business prior to the acquisition date do not reflect general and administrative expenses and interest expense as the Partnership was unable to identify and allocate such amounts to the Transferred Business for the respective periods.

(2) 

Consists principally of hydrocarbon derivative gains / (losses) that relate to the operating activities of the Partnership’s consolidated subsidiary, APL. The underlying hydrocarbon derivatives do not represent present or potential future obligations of the Partnership.


ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

 

     June 30,
2011
     December  31,
2010(1)
 
ASSETS      

Current assets:

     

Cash and cash equivalents

   $ 108,692       $ 247   

Accounts receivable

     138,154         120,697   

Current portion of derivative asset

     982         36,621   

Prepaid expenses and other

     33,519         23,652   
  

 

 

    

 

 

 

Total current assets

     281,347         181,217   

Property, plant and equipment, net

     1,922,208         1,849,486   

Intangible assets, net

     116,649         128,543   

Investment in joint venture

     85,687         153,358   

Goodwill, net

     31,784         31,784   

Long-term derivative asset

     6,291         36,125   

Other assets, net

     48,754         54,749   
  

 

 

    

 

 

 
   $ 2,492,720       $ 2,435,262   
  

 

 

    

 

 

 
LIABILITIES AND PARTNERS’ CAPITAL      

Current liabilities:

     

Current portion of long-term debt

   $ 217       $ 35,625   

Accounts payable

     95,420         79,673   

Liabilities associated with drilling contracts

     36,392         65,072   

Accrued producer liabilities

     89,006         72,996   

Current portion of derivative liability

     6,404         4,917   

Current portion of derivative payable to Drilling Partnerships

     26,791         30,797   

Accrued interest

     1,017         1,921   

Accrued well drilling and completion costs

     18,293         30,126   

Advances from affiliates

     —           14,335   

Accrued liabilities

     50,212         42,654   
  

 

 

    

 

 

 

Total current liabilities

     323,752         378,116   

Long-term debt, less current portion

     358,744         565,764   

Long-term derivative liability

     976         11,901   

Long-term derivative payable to Drilling Partnerships

     24,741         34,796   

Other long-term liabilities

     43,335         42,896   

Commitments and contingencies

     

Partners’ Capital:

     

Common limited partners’ interests

     573,142         408,720   

Accumulated other comprehensive income

     1,873         3,882   
  

 

 

    

 

 

 
     575,015         412,602   

Non-controlling interests

     1,166,157         989,187   
  

 

 

    

 

 

 

Total partners’ capital

     1,741,172         1,401,789   
  

 

 

    

 

 

 
   $ 2,492,720       $ 2,435,262   
  

 

 

    

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011.


ATLAS ENERGY, L.P.

Financial and Operating Highlights

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2011      2010(1)     2011(1)      2010(1)  

Net income (loss) attributable to common limited partners per unit - basic

   $ 0.31       $ (0.04   $ 0.91       $ (0.09

Distributable cash flow per unit(2)(3)

   $ 0.44       $ —        $ 0.58       $ —     

Cash distributions paid per unit(2)(4)

   $ 0.22       $ —        $ 0.33       $ —     

Production revenues (in thousands):

          

Natural gas

   $ 12,472       $ 20,670      $ 26,194       $ 41,937   

Oil(5)

     5,251         4,560        9,155         8,773   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total production revenues(5)

   $ 17,723       $ 25,230      $ 35,349       $ 50,710   
  

 

 

    

 

 

   

 

 

    

 

 

 

Production volume:(6)(7)

          

Appalachia(8):

          

Natural gas (Mcfd)

     28,208         34,902        28,714         35,949   

Oil (Bpd)(9)

     806         846        767         851   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total (Mcfed)

     33,042         39,979        33,314         41,057   
  

 

 

    

 

 

   

 

 

    

 

 

 

New Albany/Antrim:

          

Natural gas (Mcfd)

     3,192         1,615        3,218         1,320   

Oil (Bpd)

     —           —          —           —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Total (Mcfed)

     3,192         1,615        3,218         1,320   
  

 

 

    

 

 

   

 

 

    

 

 

 

Niobrara:

          

Natural gas (Mcfd)

     399         —          293         —     

Oil (Bpd)

     —           —          —           —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Total (Mcfed)

     399         —          293         —     
  

 

 

    

 

 

   

 

 

    

 

 

 

Total:

          

Natural gas (Mcfd)

     31,799         36,517        32,225         37,269   

Oil (Bpd)(9)

     806         846        767         851   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total (Mcfed)

     36,633         41,594        36,825         42,377   
  

 

 

    

 

 

   

 

 

    

 

 

 

Average sales prices:(7)

          

Natural gas (per Mcf) (10)

   $ 5.15       $ 7.17      $ 5.31       $ 7.41   

Oil (per Bbl)(11)

   $ 99.70       $ 79.64      $ 94.32       $ 76.10   

Production costs:(7)(12)

          

Lease operating expenses per Mcfe

   $ 1.05       $ 1.40      $ 0.96       $ 1.13   

Production taxes per Mcfe

     0.04         0.03        0.05         0.04   
  

 

 

    

 

 

   

 

 

    

 

 

 

Total production costs per Mcfe

   $ 1.09       $ 1.43      $ 1.01       $ 1.17   

Depletion per Mcfe(7)

   $ 2.15       $ 2.36      $ 2.06       $ 2.19   

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011.

(2) 

A reconciliation from net income to distributable cash flow is provided in the financial tables of this release.

(3) 

Calculation consists of distributable cash flow divided by 51,235,000 weighted average common limited partner units outstanding for the 2nd quarter 2011 and 51,232,000, which is the weighted average common limited partner units outstanding for the period subsequent to February 17, 2011, the date of acquisition for the Transferred Business, which includes the 23.4 million common limited partner units issued as partial consideration for the acquisition.

(4) 

Represents the cash distributions paid by the Partnership within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter.

(5) 

Includes NGL production revenue.

(6) 

Production quantities consist of the sum of (i) the Partnership’s proportionate share of production from wells in which it has a direct interest, based on the Partnership’s proportionate net revenue interest in such wells, and (ii) the Partnership’s proportionate share of production from wells owned by the investment partnerships in which the Partnership has an interest, based on its equity interest in each such partnership and based on each partnership’s proportionate net revenue interest in these wells.


(7) 

“Mcf” and “Mcfd” represent thousand cubic feet and thousand cubic feet per day; “Mcfe” and “Mcfed” represent thousand cubic feet equivalents and thousand cubic feet equivalents per day, and “Bbl” and “Bpd” represent barrels and barrels per day. Barrels are converted to Mcfe using the ratio of six Mcf’s to one barrel.

(8) 

Appalachia consists of the Partnership’s production located in Pennsylvania, Ohio, New York, West Virginia and Tennessee.

(9) 

Includes NGL production volume.

(10) 

The Partnership’s average sales price for natural gas before the effects of financial hedging was $5.05 per Mcf and $4.37 per Mcf for the three months ended June 30, 2011 and 2010, respectively, and $4.64 per Mcf and $5.20 per Mcf for the six months ended June 30, 2011 and 2010, respectively. These amounts exclude the impact of certain allocations of production revenues to investor partners within the investor partnerships. Including the effects of these allocations, average natural gas sales prices were $4.31 per Mcf ($4.20 per Mcf before the effects of financial hedging) and $6.22 per Mcf ($3.43 per Mcf before the effects of financial hedging) for the three months ended June 30, 2011 and 2010, respectively, and $4.49 per Mcf ($3.82 per Mcf before the effects of financial hedging) and $6.22 per Mcf ($4.01 per Mcf before the effects of financial hedging) for the six months ended June 30, 2011 and 2010, respectively.

(11) 

The Partnership’s average sales price for oil before the effects of financial hedging was $99.70 per barrel and $72.76 per barrel for the three months ended June 30, 2011 and 2010, respectively, and $92.25 per barrel and $70.09 per barrel for the six months ended June 30, 2011 and 2010, respectively.

(12) 

Production costs include labor to operate the wells and related equipment, repairs and maintenance, materials and supplies, property taxes, severance taxes, insurance and production overhead. These amounts exclude the effects of the Partnership’s proportionate share of lease operating expenses associated with certain allocations of production revenue to investor partners within the Partnership’s investor partnerships. Including the effects of these costs, lease operating expenses per Mcfe were $0.71 per Mcfe ($0.75 per Mcfe for total production costs) and $1.08 per Mcfe ($1.11 per Mcfe for total production costs) for the three months ended June 30, 2011 and 2010, respectively, and $0.65 per Mcfe ($0.70 per Mcfe for total production costs) and $0.76 per Mcfe ($0.80 per Mcfe for total production costs) for the six months ended June 30, 2011 and 2010, respectively.


ATLAS ENERGY, L.P.

CAPITALIZATION INFORMATION

(unaudited; in thousands)

 

     June 30, 2011     December 31, 2010(1)  
     Atlas
Energy
    Atlas
Pipeline
    Consolidated     Atlas
Energy
    Atlas
Pipeline
    Consolidated
Combined
 

Total debt

   $ —        $ 358,961      $ 358,961      $ 35,415      $ 565,974      $ 601,389   

Less: Cash

     (108,526     (166     (108,692     (83     (164     (247
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net debt/(cash)

     (108,526     358,795        250,269        35,332        565,810        601,142   

Partners’ capital

     575,997        1,244,319        1,741,172 (2)      414,035        1,041,647        1,401,789 (2) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total capitalization

   $ 467,471      $ 1,603,114      $ 1,991,441      $ 449,367      $ 1,607,457      $ 2,002,931   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of net debt to capitalization

     0.00x            0.08x       

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011.

(2) 

Net of eliminated amounts.

ATLAS ENERGY, L.P.

CAPITAL EXPENDITURE DATA

(unaudited; in thousands)

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2011      2010(1)      2011(1)      2010(1)  

Atlas Energy

           

Maintenance capital expenditures(2)

   $ 3,567       $ —         $ 5,233       $ —     

Expansion capital expenditures

     3,083         13,851         9,149         42,256   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 6,650       $ 13,851       $ 14,382       $ 42,256   
  

 

 

    

 

 

    

 

 

    

 

 

 

Atlas Pipeline

           

Maintenance capital expenditures

   $ 5,211       $ 3,008       $ 8,471       $ 3,883   

Expansion capital expenditures

     68,425         10,040         83,498         15,952   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 73,636       $ 13,048       $ 91,969       $ 19,835   
  

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated Combined

           

Maintenance capital expenditures

   $ 8,778       $ 3,008       $ 13,704       $ 3,883   

Expansion capital expenditures

     71,508         23,891         92,647         58,208   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 80,286       $ 26,899       $ 106,351       $ 62,091   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011. Also, the amounts for the second quarter 2010 and the six months ended June 30, 2010 were restated to reflect amounts reclassified to discontinued operations due to APL’s sale of assets in September 2010.

(2) 

Prior to the Partnership’s acquisition of the Transferred Business on February 17, 2011, the Partnership had no maintenance capital requirements with regard to its oil and gas properties.


ATLAS ENERGY, L.P.

Financial Information

(unaudited; in thousands)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
      2011     2010     2011     2010  

Atlas Energy Stand-Alone Adjusted EBITDA and Distributable Cash Flow Summary:

        

Gas and oil production margin

   $ 13,681      $ —        $ 18,813      $ —     

Well construction and completion margin

     1,670        —          1,866        —     

Administration and oversight margin

     1,375        —          1,724        —     

Well services margin

     3,181        —          4,570        —     

Gathering

     (645     —          (1,221     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Margin

     19,262        —          25,752        —     

Cash general and administrative expenses(1)

     (9,558     (222     (10,085     (661

Atlas Pipeline Cash Distributions Received(2)

     2,730        —          5,264        —     

Other, net

     13,964        —          14,358        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(3)

     26,398        (222     35,289        (661

Cash interest expense(4)

     (170     (524     (316     (1,142

Maintenance capital expenditures

     (3,567     —          (5,233     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributable Cash Flow(3)

   $ 22,661      $ (746   $ 29,740      $ (1,803
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions Paid(5)

   $ 11,276      $ —        $ 16,911      $ —     

per limited partner unit

   $ 0.22      $ —        $ 0.33      $ —     

Reconciliation of non-GAAP measures to net income (loss) attributable to common limited partners(3):

        

Atlas Energy Stand-Alone Distributable Cash Flow

   $ 22,661      $ (746   $ 29,740      $ (1,803

Distributable cash flow of Transferred Business as of and prior to February 17, 2011 (the date of acquisition)(6)

     —          27,640        8,261        63,786   

Atlas Pipeline net income (loss) attributable to common limited partners

     896        (37     31,090        34   

Atlas Pipeline cash distributions received(2)

     (2,730     —          (5,264     —     

Non-recurring acquisition costs

     —          —          (2,087     —     

Depreciation, depletion and amortization

     (8,247     (11,491     (15,948     (20,131

Amortization of deferred finance costs

     (253     —          (5,185     —     

Non-cash stock compensation expense

     (4,111     (358     (4,612     (709

Maintenance capital expenditures(7)

     3,567        —          5,233        —     

Non-cash net gain (loss) on asset sales

     48        —          48        (2,947

Other non-cash adjustments

     4,682        (360     5,488        (440

Income not attributable to common limited partners (results of operations of the Transferred Business as of and prior to February 17, 2011, the date of acquisition)(6)

     —          (15,788     (4,711     (40,294
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ 16,513      $ (1,140   $ 42,053      $ (2,504
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Excludes non-cash stock-compensation expense and non-recurring costs incurred in connection with the acquisition of the Transferred Business.

(2) 

Represents the cash distribution received from Atlas Pipeline during the respective period (paid from distributable cash flow generated during the preceding quarter).

(3) 

Adjusted EBITDA and distributable cash flow are non-GAAP (generally accepted accounting principles) financial measures under the rules of the Securities and Exchange Commission. Management of the Partnership believes that adjusted EBITDA and distributable cash flow provide additional information for evaluating the Partnership’s performance, among other things. These measures are widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards. Adjusted EBITDA is also a financial measurement that, with certain negotiated adjustments, is utilized within the Partnership’s financial covenants under its credit facility. Adjusted EBITDA and distributable cash flow are not measures of financial performance under GAAP and, accordingly, should not be considered as a substitute for net income, operating income, or cash flows from operating activities in accordance with GAAP.

(4) 

Excludes non-cash amortization of deferred financing costs.

(5) 

Represents the cash distributions paid by the Partnership within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter.

(6) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011.

(7) 

Prior to the Partnership’s acquisition of the Transferred Business on February 17, 2011, the Partnership had no maintenance capital requirements with regard to its oil and gas properties.


ATLAS ENERGY, L.P.

CONSOLIDATING COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended June 30, 2011

 

     Atlas
Energy
    Atlas
Pipeline
    Eliminations     Consolidated
Combined
 

Revenues:

        

Gas and oil production

   $ 17,723      $ —        $ —        $ 17,723   

Well construction and completion

     10,954        —          —          10,954   

Gathering and processing

     5,118        340,616        —          345,734   

Administration and oversight

     1,375        —          —          1,375   

Well services

     4,855        —          —          4,855   

Gain on mark-to-market derivatives

     —          6,837        —          6,837   

Other, net

     18,646        2,768        —          21,414   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     58,671        350,221        —          408,892   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Gas and oil production

     4,042        —          —          4,042   

Well construction and completion

     9,284        —          —          9,284   

Gathering and processing

     5,763        287,708        —          293,471   

Well services

     1,674        —          —          1,674   

General and administrative

     13,669        8,570        —          22,239   

Depreciation, depletion and amortization

     8,247        19,123        —          27,370   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     42,679        315,401        —          358,080   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     15,992        34,820        —          50,812   

Gain (loss) on asset sales

     48        (281     —          (233

Interest expense

     (423     (6,144     —          (6,567

Loss on early extinguishment of debt

     —          (19,574     —          (19,574
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     15,617        8,821        —          24,438   

Discontinued operations

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     15,617        8,821        —          24,438   

Income attributable to non-controlling interests

     —          (1,545     (6,380     (7,925
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common limited partners

   $ 15,617      $ 7,276      $ (6,380   $ 16,513   
  

 

 

   

 

 

   

 

 

   

 

 

 


ATLAS ENERGY, L.P.

CONSOLIDATING COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended June 30, 2010

 

     Atlas
Energy(1)
    Atlas
Pipeline
    Eliminations      Consolidated
Combined(1)
 

Revenues:

         

Gas and oil production

   $ 25,230      $ —        $ —         $ 25,230   

Well construction and completion

     43,295        —          —           43,295   

Gathering and processing

     5,956        208,060        —           214,016   

Administration and oversight

     1,867        —          —           1,867   

Well services

     4,912        —          —           4,912   

Gain (loss) on mark-to-market derivatives

     24        5,794        —           5,818   

Other, net

     (149     3,261        —           3,112   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total revenues

     81,135        217,115        —           298,250   
  

 

 

   

 

 

   

 

 

    

 

 

 

Costs and expenses:

         

Gas and oil production

     6,563        —          —           6,563   

Well construction and completion

     36,682        —          —           36,682   

Gathering and processing

     7,798        175,029        —           182,827   

Well services

     2,812        —          —           2,812   

General and administrative

     580 (1)      6,192        —           6,772   

Depreciation, depletion and amortization

     11,491        18,624        —           30,115   
  

 

 

   

 

 

   

 

 

    

 

 

 

Total costs and expenses

     65,926        199,845        —           265,771   
  

 

 

   

 

 

   

 

 

    

 

 

 

Operating income

     15,209        17,270        —           32,479   

Gain (loss) on asset sales

     —          —          —           —     

Interest expense

     (524 )(1)      (24,595     —           (25,119
  

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) from continuing operations

     14,685        (7,325     —           7,360   

Discontinued operations

     —          7,976        —           7,976   
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income

     14,685        651        —           15,336   

Income attributable to non-controlling interests

     —          (945     257         (688
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss) after non-controlling interests

     14,685        (294     257         14,648   

Income not attributable to common limited partners (results of operations of the Transferred Business as of and prior to February 17, 2011, the date of acquisition(1))

     (15,788     —          —           (15,788
  

 

 

   

 

 

   

 

 

    

 

 

 

Net loss attributable to common limited partners

   $ (1,103   $ (294   $ 257       $ (1,140
  

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011. However, since the results of operations of the Transferred Business prior to its acquisition date are not attributable to the common limited partners of the Partnership, these amounts have been deducted to obtain net income (loss) attributable to common limited partners for the respective period. Also, the historical results of the Transferred Business prior to the acquisition date do not reflect general and administrative expenses and interest expense as the Partnership was unable to identify and allocate such amounts to the Transferred Business for the respective periods.


ATLAS ENERGY, L.P.

CONSOLIDATING COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Six Months Ended June 30, 2011

 

     Atlas
Energy(1)
    Atlas
Pipeline
    Eliminations     Consolidated
Combined(1)
 

Revenues:

        

Gas and oil production

   $ 35,349      $ —        $ —        $ 35,349   

Well construction and completion

     28,679        —          —          28,679   

Gathering and processing

     9,617        616,335        —          625,952   

Administration and oversight

     2,736        —          —          2,736   

Well services

     10,141        —          —          10,141   

Loss on mark-to-market derivatives

     —          (14,808     —          (14,808

Other, net

     19,749        6,018        —          25,767   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     106,271        607,545        —          713,816   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Gas and oil production

     7,963        —          —          7,963   

Well construction and completion

     24,305        —          —          24,305   

Gathering and processing

     11,497        518,958        —          530,455   

Well services

     4,034        —          —          4,034   

General and administrative

     20,842  (1)      17,587        —          38,429   

Depreciation, depletion and amortization

     15,948        38,029        —          53,977   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     84,589        574,574        —          659,163   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     21,682        32,971        —          54,653   

Gain on asset sales

     48        255,666        —          255,714   

Interest expense

     (6,056 (1)      (18,589     —          (24,645

Loss on early extinguishment of debt

     —          (19,574     —          (19,574
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     15,674        250,474        —          266,148   

Discontinued operations

     —          (81     —          (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     15,674        250,393        —          266,067   

Income attributable to non-controlling interests

     —          (2,732     (216,571     (219,303
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income after non-controlling interests

     15,674        247,661        (216,571     46,764   

Income not attributable to common limited partners (results of operations of the Transferred Business as of and prior to February 17, 2011, the date of acquisition(1))

     (4,711     —          —          (4,711
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common limited partners

   $ 10,963      $ 247,661      $ (216,571   $ 42,053   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011. However, since the results of operations of the Transferred Business prior to its acquisition date are not attributable to the common limited partners of the Partnership, these amounts have been deducted to obtain net income (loss) attributable to common limited partners for the respective period. Also, the historical results of the Transferred Business prior to the acquisition date do not reflect general and administrative expenses and interest expense as the Partnership was unable to identify and allocate such amounts to the Transferred Business for the respective periods.


ATLAS ENERGY, L.P.

CONSOLIDATING COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Six Months Ended June 30, 2010

 

     Atlas
Energy(1)
    Atlas
Pipeline
    Eliminations     Consolidated
Combined(1)
 

Revenues:

        

Gas and oil production

   $ 50,710      $ —        $ —        $ 50,710   

Well construction and completion

     115,937        —          —          115,937   

Gathering and processing

     9,069        441,493        —          450,562   

Administration and oversight

     3,912        —          —          3,912   

Well services

     10,092        —          —          10,092   

Gain on mark-to-market derivatives

     —          10,539        —          10,539   

Other, net

     (197     6,698        —          6,501   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     189,523        458,730        —          648,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Gas and oil production

     10,606        —          —          10,606   

Well construction and completion

     98,243        —          —          98,243   

Gathering and processing

     12,053        366,936        —          378,989   

Well services

     5,275        —          —          5,275   

General and administrative

     1,370 (1)      15,943        —          17,313   

Depreciation, depletion and amortization

     20,131        37,081        —          57,212   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     147,678        419,960        —          567,638   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     41,845        38,770        —          80,615   

Loss on asset sales

     (2,947     —          —          (2,947

Interest expense

     (1,142 (1)      (50,998     —          (52,140
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     37,756        (12,228     —          25,528   

Discontinued operations

     —          14,757        —          14,757   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     37,756        2,529        —          40,285   

Income attributable to non-controlling interests

     —          (2,262     (233     (2,495
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income after non-controlling interests

     37,756        267        (233     37,790   

Income not attributable to common limited partners (results of operations of the Transferred Business as of and prior to February 17, 2011, the date of acquisition(1))

     (40,294     —          —          (40,294
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ (2,538   $ 267      $ (233   $ (2,504
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011. However, since the results of operations of the Transferred Business prior to its acquisition date are not attributable to the common limited partners of the Partnership, these amounts have been deducted to obtain net income (loss) attributable to common limited partners for the respective period. Also, the historical results of the Transferred Business prior to the acquisition date do not reflect general and administrative expenses and interest expense as the Partnership was unable to identify and allocate such amounts to the Transferred Business for the respective periods.


ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

June 30, 2011

 

     Atlas
Energy
     Atlas
Pipeline
    Eliminations     Consolidated  
ASSETS          

Current assets:

         

Cash and cash equivalents

   $ 108,526       $ 166      $ —        $ 108,692   

Accounts receivable

     25,830         112,324        —          138,154   

Current portion of derivative asset

     982         —          —          982   

Prepaid expenses and other

     8,523         24,996        —          33,519   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total current assets

     143,861         137,486        —          281,347   

Property, plant and equipment, net

     509,104         1,413,104        —          1,922,208   

Goodwill and intangible assets, net

     33,606         114,827        —          148,433   

Long-term derivative asset

     1,873         4,418        —          6,291   

Investment in joint venture

     —           85,687        —          85,687   

Investment in subsidiaries

     79,144         —          (79,144     —     

Other assets, net

     27,329         21,425        —          48,754   
  

 

 

    

 

 

   

 

 

   

 

 

 
   $ 794,917       $ 1,776,947      $ (79,144   $ 2,492,720   
  

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

         

Current liabilities:

         

Current portion of long-term debt

   $ —         $ 217      $ —        $ 217   

Accounts payable

     47,369         48,051        —          95,420   

Liabilities associated with drilling contracts

     36,392         —          —          36,392   

Accrued producer liabilities

     —           89,006        —          89,006   

Current portion of derivative liability

     —           6,404        —          6,404   

Current portion of derivative payable to Partnerships

     26,791         —          —          26,791   

Accrued interest

     —           1,017        —          1,017   

Accrued well drilling and completion costs

     18,293         —          —          18,293   

Advances from affiliates

     —           —          —          —     

Accrued liabilities

     22,173         28,039        —          50,212   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total current liabilities

     151,018         172,734        —          323,752   

Long-term debt, less current portion

     —           358,744        —          358,744   

Long-term derivative liability

     —           976        —          976   

Long-term derivative payable to Partnerships

     24,741         —          —          24,741   

Other long-term liabilities

     43,161         174        —          43,335   

Partners’ Capital:

         

Common limited partners’ interests

     573,142         1,283,536        (1,283,536     573,142   

Accumulated other comprehensive income (loss)

     2,855         (7,820     6,838        1,873   
  

 

 

    

 

 

   

 

 

   

 

 

 
     575,997         1,275,716        (1,276,698     575,015   

Non-controlling interests

     —           (31,397     1,197,554        1,166,157   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total partners’ capital

     575,997         1,244,319        (79,144     1,741,172   
  

 

 

    

 

 

   

 

 

   

 

 

 
   $ 794,917       $ 1,776,947      $ (79,144   $ 2,492,720   
  

 

 

    

 

 

   

 

 

   

 

 

 


ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATING COMBINED BALANCE SHEETS

(unaudited; in thousands)

December 31, 2010

 

      Atlas
Energy(1)
     Atlas
Pipeline
    Eliminations     Consolidated
Combined(1)
 
ASSETS          

Current assets:

         

Cash and cash equivalents

   $ 83       $ 164      $ —        $ 247   

Accounts receivable

     20,800         99,759        —          120,559   

Current portion of derivative asset

     36,621         —          —          36,621   

Prepaid expenses and other

     8,672         15,118        —          23,790   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total current assets

     66,176         115,041        —          181,217   

Property, plant and equipment, net

     508,484         1,341,002        —          1,849,486   

Goodwill and intangible assets, net

     33,948         126,379        —          160,327   

Long-term derivative asset

     36,125         —          —          36,125   

Investment in joint venture

     —           153,358        —          153,358   

Investment in subsidiaries

     53,893         —          (53,893     —     

Other assets, net

     25,681         29,068        —          54,749   
  

 

 

    

 

 

   

 

 

   

 

 

 
   $ 724,307       $ 1,764,848      $ (53,893   $ 2,435,262   
  

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

         

Current liabilities:

         

Current portion of long-term debt

   $ 35,415       $ 210      $ —        $ 35,625   

Accounts payable

     50,291         29,382        —          79,673   

Liabilities associated with drilling contracts

     65,072         —          —          65,072   

Accrued producer liabilities

     —           72,996        —          72,996   

Current portion of derivative liability

     353         4,564        —          4,917   

Current portion of derivative payable to Partnerships

     30,797         —          —          30,797   

Accrued interest

     —           1,921        —          1,921   

Accrued well drilling and completion costs

     30,126         —          —          30,126   

Advances from affiliates

     2,055         12,280        —          14,335   

Accrued liabilities

     12,401         30,253        —          42,654   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total current liabilities

     226,510         151,606        —          378,116   

Long-term debt, less current portion

     —           565,764        —          565,764   

Long-term derivative liability

     6,293         5,608        —          11,901   

Long-term derivative payable to Partnerships

     34,796         —          —          34,796   

Other long-term liabilities

     42,673         223        —          42,896   

Partners’ Capital:

         

Common limited partners’ interests

     408,720         1,085,408        (1,085,408     408,720   

Accumulated other comprehensive income (loss)

     5,315         (11,224     9,791        3,882   
  

 

 

    

 

 

   

 

 

   

 

 

 
     414,035         1,074,184        (1,075,617     412,602   

Non-controlling interests

     —           (32,537     1,021,724        989,187   
  

 

 

    

 

 

   

 

 

   

 

 

 

Total partners’ capital

     414,035         1,041,647        (53,893     1,401,789   
  

 

 

    

 

 

   

 

 

   

 

 

 
   $ 724,307       $ 1,764,848      $ (53,893   $ 2,435,262   
  

 

 

    

 

 

   

 

 

   

 

 

 

 

(1) 

In accordance with prevailing accounting literature, the Partnership has adjusted its historical financial statements to present them combined with the historical financial results of the Transferred Business for all periods prior to its acquisition date of February 17, 2011.


ATLAS ENERGY, L.P.

Ownership Interests Summary

 

Atlas Energy Ownership Interests as of June 30, 2011:

   Amount     Overall
Ownership
Interest
Percentage
 

ATLAS PIPELINE:

    

General partner interest

     100     2.0

Common units

     5,754,253        10.7

Incentive distribution rights

     100     N/A   
    

 

 

 

Total Atlas Energy ownership interests in Atlas Pipeline

       12.7
    

 

 

 

LIGHTFOOT CAPITAL PARTNERS, GP LLC:

    

Approximate ownership interest

       18.0