0001193125-13-070428.txt : 20130222 0001193125-13-070428.hdr.sgml : 20130222 20130222082325 ACCESSION NUMBER: 0001193125-13-070428 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130221 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130222 DATE AS OF CHANGE: 20130222 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: 13632346 BUSINESS ADDRESS: STREET 1: PARK PLACE CORPORATE CENTER ONE STREET 2: 1000 COMMERCE DRIVE, 4TH FLOOR CITY: PITTSBURGH STATE: PA ZIP: 15275 BUSINESS PHONE: 412-489-0006 MAIL ADDRESS: STREET 1: PARK PLACE CORPORATE CENTER ONE STREET 2: 1000 COMMERCE DRIVE, 4TH FLOOR CITY: PITTSBURGH STATE: PA ZIP: 15275 FORMER COMPANY: FORMER CONFORMED NAME: Atlas Pipeline Holdings, L.P. DATE OF NAME CHANGE: 20051219 8-K 1 d492330d8k.htm FORM 8-K 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): February 21, 2013

Commission file number 001-32953

 

 

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.)

Park Place Corporate Center One

1000 Commerce Drive, Suite 400

Pittsburgh, PA 15275

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (412) 489-0006

 

(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 February 21, 2013, Atlas Energy, L.P. issued an earnings release announcing its financial results for the fourth quarter and full year of 2012. 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 February 21, 2013

 

2


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
February 21, 2013     By:  

/s/ Sean McGrath

      Sean McGrath
      Chief Financial Officer

 

3

EX-99.1 2 d492330dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

NEWS RELEASE

 

CONTACT:    Brian J. Begley
   Vice President - Investor Relations
   Atlas Energy, L.P.
   (877) 280-2857
   (215) 405-2718 (fax)

 

 

ATLAS ENERGY, L.P. REPORTS OPERATING AND FINANCIAL RESULTS

FOR THE FOURTH QUARTER AND FULL YEAR 2012

Philadelphia, PA - February 21, 2013 - Atlas Energy, L.P. (NYSE: ATLS) (“Atlas Energy” or “ATLS”) today reported operating and financial results for the fourth quarter and full year 2012.

 

   

ATLS declared a cash distribution of $0.30 per limited partner unit for the fourth quarter 2012, which represents a $0.03 per unit, or 11%, increase over the third quarter 2012, and a 25% increase over the prior year quarter. The fourth quarter 2012 ATLS distribution was paid on February 19, 2013 to holders of record as of February 6, 2013.

 

   

Atlas Energy’s E&P subsidiary, Atlas Resource Partners, L.P. (NYSE: ARP), reached record average net production of 110.1 million cubic feet of natural gas equivalents per day (Mmcfed) for the fourth quarter 2012, a 14% increase from the prior quarter. In December 2012, ARP completed its most recent acquisition of oil & natural gas liquids (NGL) rich reserves in the Marble Falls region of the Fort Worth Basin from DTE Energy (“DTE”) for approximately $255 million. ARP completed approximately $650 million in acquisitions in the Fort Worth Basin in 2012.

 

   

Atlas Pipeline Partners, L.P. (NYSE: APL), Atlas Energy’s midstream subsidiary, announced record processing volumes at each of its systems, reaching a total of 1,001.9 Mmcfd and NGL production of 80,120 barrels per day (bpd) for the fourth quarter 2012. APL also recently completed its acquisition of Cardinal Midstream in December 2012, in which APL acquired valuable gathering and processing facilities

Edward E. Cohen, Chief Executive Officer of Atlas Energy, stated, “Our results in 2012 at ATLS should only be exceeded by our accomplishments this year and beyond. All of our success is attributable to the tremendous efforts of both ARP and APL, both of which had strong performances through the end of the year. We expect continued value creation for all of our stakeholders.”

*    *    *

Financial Results

 

   

On January 24, 2013, ARP increased its quarterly cash distribution to $0.48 per unit for the fourth quarter 2012, which was paid on February 14, 2013 to holders of record as of February 6, 2013. ATLS received approximately $10.7 million of cash distributions based upon ARP’s fourth quarter 2012 distribution.

 

   

On January 23, 2013, APL declared an increased distribution for the fourth quarter 2012 of $0.58 per unit to holders of record on February 7, 2013, which was paid on February 14, 2013. ATLS received approximately $6.5 million of cash distributions based upon APL’s fourth quarter 2012 distribution.

 

   

On a GAAP basis, net loss attributable to limited partners was $14.9 million for the fourth quarter 2012 compared to net loss of $4.2 million for the prior year comparable period. The loss for the fourth quarter 2012 is due primarily to Atlas Energy’s $4.6 million of non-cash stock compensation expense, and its ownership interest in ARP, which recognized $9.5 million of non-cash asset impairments on certain non-core legacy oil and gas properties and $8.7 million of acquisition costs related to the DTE acquisition.

*    *    *

Recent Events

Atlas Resources’ Acquisition of Barnett Shale/Marble Falls properties from DTE Energy

On December 20, 2012, ARP completed its acquisition DTE Gas Resources, LLC, an affiliate of DTE Energy Company (“DTE”), which owned approximately 35 million barrels of oil equivalents (MMboe) of proved reserves and substantial resource potential in the Fort Worth Basin in Texas for approximately $255 million. This transaction represented ARP’s third acquisition in 2012 in the Fort Worth Basin, and ARP has invested a total of approximately $650 million to acquire estimated proved reserves of over 700 billion cubic feet equivalents (Bcfe) at the time of acquisition.

 

4


Included in the DTE transaction was approximately 88,000 net acres in the Fort Worth Basin of Texas, primarily in Jack County, offsetting ARP’s current Barnett Shale position. This acreage position includes approximately 75,000 net acres prospective for the oil and NGL rich Marble Falls play, in which there are approximately 700 identified vertical drilling locations in ARP’s position. ARP also believes that there are further potential development opportunities through vertical down-spacing and horizontal drilling in the Marble Falls formation. ARP commenced initial drilling operations in the Marble Falls play in January 2013.

Atlas Resources’ Issuance of $275 million 7.75% 2021 Senior Notes

On January 23, 2013, ARP issued $275 million of 7.75% Senior Notes due 2021 in a private placement transaction issued at par. ARP received net proceeds of $268.3 million after underwriting commissions and other transaction costs, and utilized the proceeds to repay and terminate ARP’s $75.4 million term loan and reduce the outstanding balance on its revolving credit facility. The senior notes are subject to a registration rights agreement entered in connection with the transaction, which requires ARP, among other things, to file a registration statement with the SEC and exchange the privately placed notes for registered notes by certain dates.

Atlas Pipeline’s Acquisition of Cardinal Midstream

In December 2012, APL acquired 100% of the equity interests held by Cardinal Midstream, LLC (“Cardinal”) in its three wholly-owned subsidiaries for approximately $600.0 million in cash, subject to customary purchase price adjustments. The assets of these companies represent the majority of the operating assets of Cardinal and include the following owned and/or operated assets: three cryogenic processing plants totaling 220 million cubic feet of natural gas per day (MMcfd) in processing capacity, approximately 60 miles of associated gathering pipelines, and a gas treating business that includes 15 treating facilities located in numerous hydrocarbon basins. Over 80% of Cardinal’s current gross margin is derived from fixed fee contracts.

Atlas Pipeline Senior Notes Offerings

On February 11, 2013, APL issued $650 million of 5.875% Senior Notes due 2023 in a private placement transaction issued at par. APL received net proceeds of approximately $638.2 million after underwriting commissions and other transaction costs, and utilized the proceeds to redeem any or all of its outstanding 8.75% Senior Notes due 2018 in a related tender offer, as well as repay a portion of its outstanding indebtedness under its existing credit facility.

In September 2012, APL issued $325.0 million of 6.625% Senior Notes due 2020 in a private placement transaction. Subsequently, in December 2012, APL completed a follow-on private offering of $175 million of 6.625% Senior Notes due 2020 at 103% of their principal amount, plus accrued interest from September 28, 2012, representing a yield to worst of 6.003%. APL received net proceeds of approximately $176.3 million after underwriting commissions and other transaction costs, and utilized the proceeds from the December offering to fund a portion of its acquisition of Cardinal.

The senior notes are subject to a registration rights agreement entered in connection with the transaction, which requires APL, among other things, to file a registration statement with the SEC and exchange the privately placed notes for registered notes by certain dates.

Atlas Resource Fourth Quarter 2012 Highlights

 

   

ARP’s average net daily production for the fourth quarter 2012 was 110.1 Mmcfed, an increase of approximately 13.8 Mmcfed, or 14%, compared with the third quarter 2012. The increase was primarily due to a full quarter’s volume from the acquisition of the remaining 50% interest in Equal Energy, Ltd.’s approximately 8,500 net undeveloped acres in the core of the Mississippi Lime play in northwestern Oklahoma in September 2012, and a full quarter’s volume from the acquisition of Titan Operating, LLC (“Titan”) in the Barnett Shale in July 2012.

ATLS owns 100% of the general partner Class A units and the incentive distribution rights, and a 43% common limited partner interest in ARP. ATLS’ financial results are presented on a consolidated basis with those of ARP. Non-controlling interests in ARP are reflected as income (expense) in ATLS’ consolidated statements of operations and as a component of partners’ capital on its consolidated balance sheets. A consolidating statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented. Please refer to the ARP fourth quarter and full year 2012 earnings release for additional details on its financial results.

 

5


Atlas Pipeline Fourth Quarter 2012 Highlights

 

   

During the fourth quarter 2012, APL operated near or at nameplate capacity on all of its gathering and processing systems in the Mid Continent. APL processed an average of approximately 1,001.9 Mmcfd of natural gas in the fourth quarter 2012 amongst its WestOK, WestTX, Velma and the newly-acquired Arkoma systems, 67% higher than the prior year comparable quarter’s volumes. APL again attained record high volumes with over 80,100 bbl per day of natural gas liquids generated from APL’s four processing systems, which primarily reside in Oklahoma and Texas.

ATLS owns a 2.0% general partner interest, all of the incentive distribution rights, and a 8.7% 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 statements of operations and as a component of partners’ capital on its consolidated balance sheets. A consolidating statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented. Please refer to the APL fourth quarter and full year 2012 earnings release for additional details on its financial results.

Corporate Expenses

 

   

Cash general and administrative expense, excluding amounts attributable to APL and ARP, was $1.5 million for the fourth quarter 2012, relatively consistent with the third quarter 2012. Please refer to the consolidating combined statements of operations provided in the financial tables of this release.

*    *    *

Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Energy, L.P.’s fourth quarter 2012 results on Friday, February 22, 2013 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 11:00 a.m. ET on February 22, 2013 by dialing 888-286-8010, passcode: 12321370.

Atlas Energy, L.P. (NYSE: ATLS) is a master limited partnership which owns all of the general partner Class A units and incentive distribution rights and an approximate 43% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P. Additionally, Atlas Energy owns and operates the general partner of its midstream oil & gas subsidiary, Atlas Pipeline Partners, L.P., through all of the general partner interest, all the incentive distribution rights and an approximate 9% limited partner interest. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.

Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration & production master limited partnership which owns an interest in over 10,200 producing natural gas and oil wells, primarily in Appalachia and the Barnett Shale in Texas. ARP is also the largest sponsor of natural gas and oil investment partnerships in the U.S. For more information, please visit our website at www.atlasresourcepartners.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 Oklahoma, southern Kansas, northern and western Texas, and Tennessee, APL owns and operates 12 active gas processing plants, 18 gas treating facilities, as well as approximately 10,100 miles of active intrastate gas gathering pipeline. APL also has a 20% interest in West Texas LPG Pipeline Limited Partnership, which is operated by Chevron Corporation. For more information, visit the Partnership’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

 

6


equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in ATLS’, ARP’s and APL’s reports filed with the U.S. Securities and Exchange Commission, including quarterly reports on Form 10-Q, current 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.

 

7


ATLAS ENERGY, L.P.

CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per unit data)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2012     2011     2012     2011  

Revenues:

        

Gas and oil production

   $ 31,578      $ 15,325      $ 92,901      $ 66,979   

Well construction and completion

     39,219        70,947        131,496        135,283   

Gathering and processing

     360,386        346,102        1,219,815        1,329,418   

Administration and oversight

     3,224        2,668        11,810        7,741   

Well services

     4,697        4,752        20,041        19,803   

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

     (4,965     (29,405     31,940        (20,453

Other, net

     4,865        5,146        13,440        31,803   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     439,004        415,535        1,521,443        1,570,574   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Gas and oil production

     10,377        5,147        26,624        17,100   

Well construction and completion

     34,197        60,876        114,079        115,630   

Gathering and processing

     298,630        291,227        1,009,100        1,123,051   

Well services

     2,204        2,661        9,280        8,738   

General and administrative(1)

     56,931        23,538        165,777        80,584   

Chevron transaction expense

     —          —          7,670        —     

Depreciation, depletion and amortization

     43,048        27,855        142,611        109,373   

Asset impairment

     9,507        6,995        9,507        6,995   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     454,894        418,299        1,484,648        1,461,471   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (15,890     (2,764     36,795        109,103   

Gain (loss) on asset sales and disposal

     39        570        (6,980     256,292   

Interest expense(1)

     (15,890     (7,434     (46,520     (38,394

Loss on early extinguishment of debt

     —          —          —          (19,574
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before tax

     (31,741     (9,628     (16,705     307,427   

Income tax expense

     (176     —          (176     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     (31,917     (9,628     (16,881     307,427   

Loss from discontinued operations

     —          —          —          (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (31,917     (9,628     (16,881     307,346   

(Income) loss attributable to non-controlling interests

     17,042        5,454        (35,532     (257,643
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) after non-controlling interests

     (14,875     (4,174     (52,413     49,703   

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
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ (14,875   $ (4,174   $ (52,413   $ 44,992   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

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

   $ (0.29   $ (0.08   $ (1.02   $ 0.91   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from discontinued operations attributable to common limited partners

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ (0.29   $ (0.08   $ (1.02   $ 0.91   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

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

   $ (0.29   $ (0.08   $ (1.02   $ 0.88   

Loss from discontinued operations attributable to common limited partners

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ (0.29   $ (0.08   $ (1.02   $ 0.88   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common limited partner units outstanding:

  

   

Basic

     51,359        51,271        51,327        48,235   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     51,359        51,271        51,327        49,676   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners:

        

Income (loss) from continuing operations

   $ (14,875   $ (4,174   $ (52,413   $ 45,002   

Loss from discontinued operations

     —          —          —          (10
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ (14,875   $ (4,174   $ (52,413   $ 44,992   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

In accordance with prevailing accounting literature, ATLS has adjusted its historical financial statements to present them combined with the historical financial results of the exploration and production business acquired from Chevron (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 ATLS, 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 ATLS 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 ATLS’s consolidated subsidiary, APL. The underlying hydrocarbon derivatives do not represent present or potential future obligations of ATLS.

 

8


ATLAS ENERGY, L.P.

CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

 

     December 31,  
     2012      2011  
ASSETS      

Current assets:

     

Cash and cash equivalents

   $ 36,780       $ 77,376   

Accounts receivable

     196,249         136,853   

Current portion of derivative asset

     35,351         15,447   

Subscriptions receivable

     55,357         34,455   

Prepaid expenses and other

     45,255         24,779   
  

 

 

    

 

 

 

Total current assets

     368,992         288,910   

Property, plant and equipment, net

     3,502,609         2,093,283   

Intangible assets, net

     200,680         104,777   

Investment in joint venture

     86,002         86,879   

Goodwill, net

     351,069         31,784   

Long-term derivative asset

     16,840         30,941   

Other assets, net

     71,002         48,197   
  

 

 

    

 

 

 
   $ 4,597,194       $ 2,684,771   
  

 

 

    

 

 

 
LIABILITIES AND PARTNERS’ CAPITAL      

Current liabilities:

     

Current portion of long-term debt

   $ 10,835       $ 2,085   

Accounts payable

     119,028         93,554   

Liabilities associated with drilling contracts

     67,293         71,719   

Accrued producer liabilities

     109,725         88,096   

Current portion of derivative payable to Drilling Partnerships

     11,293         20,900   

Accrued interest

     11,556         1,629   

Accrued well drilling and completion costs

     47,637         17,585   

Accrued liabilities

     103,291         61,653   
  

 

 

    

 

 

 

Total current liabilities

     480,658         357,221   

Long-term debt, less current portion

     1,529,508         522,055   

Long-term derivative liability

     888         —     

Long-term derivative payable to Drilling Partnerships

     2,429         15,272   

Deferred income taxes, net

     30,258         —     

Asset retirement obligations and other

     73,605         46,142   

Commitments and contingencies

     

Partners’ Capital:

     

Common limited partners’ interests

     456,171         554,999   

Accumulated other comprehensive income

     9,699         29,376   
  

 

 

    

 

 

 
     465,870         584,375   

Non-controlling interests

     2,013,978         1,159,706   
  

 

 

    

 

 

 

Total partners’ capital

     2,479,848         1,744,081   
  

 

 

    

 

 

 
   $ 4,597,194       $ 2,684,771   
  

 

 

    

 

 

 

 

9


ATLAS ENERGY, L.P.

Financial and Operating Highlights

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2012     2011     2012     2011(1)  

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

   $ (0.29   $ (0.08   $ (1.02   $ 0.91   

Distributable cash flow per unit(2)(3)

   $ 0.30      $ 0.37      $ 1.08      $ 1.36   

Cash distributions paid per unit(4)

   $ 0.30      $ 0.24      $ 1.07      $ 0.81   

ATLAS RESOURCE:

        

Production volume:(5)(6)

        

Natural gas (Mcfd)

     95,845        30,560        69,408        31,403   

Oil (Bpd)

     447        339        330        307   

Natural gas liquids (Bpd)

     1,935        432        974        444   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total (Mcfed)

     110,137        35,182        77,232        35,912   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average sales prices:(6)

        

Natural gas (per Mcf) (7)

   $ 3.04      $ 4.20      $ 3.29      $ 4.98   

Oil (per Bbl)(8)

   $ 90.76      $ 87.19      $ 94.02      $ 89.70   

Natural gas liquids (per gallon)

   $ 0.73      $ 1.14      $ 0.76      $ 1.15   

Production costs:(6)(9)

        

Lease operating expenses per Mcfe

   $ 0.88      $ 1.20      $ 0.82      $ 1.09   

Production taxes per Mcfe

     0.14        0.08        0.12        0.10   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total production costs per Mcfe

   $ 1.01      $ 1.28      $ 0.94      $ 1.19   

ATLAS PIPELINE:

        

Production volume:(6)

        

Gathered gas volume(Mcfd)

     1,100,266        649,644        1,026,996        599,828   

Processed gas volume (Mcfd)

     1,001,883        601,188        922,715        548,932   

Residue gas volume (Mcfd)

     846,794        486,312        837,961        445,094   

Processed NGL volume (Bpd)

     80,120        58,597        76,807        54,120   

Condensate volume (Bpd)

     3,044        2,325        3,415        2,821   

Average sales prices:(6)

        

Natural gas (per Mcf)

   $ 3.18      $ 3.40      $ 2.62      $ 3.86   

Condensate (per Bbl)

   $ 80.75      $ 89.75      $ 87.88      $ 90.65   

Natural gas liquids (per gallon)

   $ 0.90      $ 1.17      $ 0.90      $ 1.20   

 

(1) 

In accordance with prevailing accounting literature, ATLS 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 ATLS, 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 ATLS was unable to identify and allocate such amounts to the Transferred Business for the respective periods.

(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 the weighted average common limited partner units outstanding of 51,359,000 and 51,271,000 for the three months ended December 31, 2012 and 2011, respectively, and 51,327,000 for the year ended December 31, 2012. For the year ended December 31, 2011, the weighted average common limited partner units outstanding of 51,250,000 utilized for the calculation 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 declared per limited partner unit for the respective period and paid by ATLS within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter. The year ended December 31, 2011 includes a cash distribution payment of $0.11 per limited partner unit for the 1st quarter 2011, which reflected a prorated cash distribution for the period from February 17, 2011, the date of acquisition for the Transferred Business, to March 31, 2011.

(5) 

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

 

10


(6) 

“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.

(7) 

ARP’s average sales price for natural gas before the effects of financial hedging was $2.98 per Mcf and $3.68 per Mcf for the three months ended December 31, 2012 and 2011, respectively, and $2.60 per Mcf and $4.53 per Mcf for the years ended December 31, 2012 and 2011, respectively. These amounts exclude the impact of subordination of production revenues to investor partners within the investor partnerships. Including the effects of subordination, average natural gas sales prices were $2.54 per Mcf ($2.48 per Mcf before the effects of financial hedging) and $3.81 per Mcf ($3.29 per Mcf before the effects of financial hedging) for the three months ended December 31, 2012 and 2011, respectively, and $2.76 per Mcf ($2.08 per Mcf before the effects of financial hedging) and $4.28 per Mcf ($3.83 per Mcf before the effects of financial hedging) for the years ended December 31, 2012 and 2011, respectively.

(8) 

ARP’s average sales price for oil before the effects of financial hedging was $87.55 per barrel and $86.76 per barrel for the three months ended December 31, 2012 and 2011, respectively, and $91.32 per barrel and $89.07 per barrel for the years ended December 31, 2012 and 2011, respectively.

(9) 

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 ARP’s proportionate share of lease operating expenses associated with subordination of production revenue to investor partners within ARP’s investor partnerships. Including the effects of these costs, lease operating expenses per Mcfe were $0.71 per Mcfe ($0.95 per Mcfe for total production costs) and $0.98 per Mcfe ($1.06 per Mcfe for total production costs) for the three months ended December 31, 2012 and 2011, respectively, and $0.58 per Mcfe ($0.70 per Mcfe for total production costs) and $0.77 per Mcfe ($0.87 per Mcfe for total production costs) for the years ended December 31, 2012 and 2011, respectively.

 

11


ATLAS ENERGY, L.P.

Financial Information

(unaudited; in thousands except per unit amounts)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2012     2011     2012     2011(1)  

Adjusted EBITDA and Distributable Cash Flow Summary:

        

Atlas Resource Cash Distributions Earned(2):

        

Limited Partner Units

   $ 10,062      $ —        $ 29,975      $ —     

Class A Units (2%)

     469        —          1,146        —     

Incentive Distribution Rights

     149        —          149        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Atlas Resource Cash Distributions Earned(2)

     10,680        —          31,270        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

per limited partner unit

   $ 0.48      $ —        $ 1.43      $ —     

Atlas Pipeline Cash Distributions Earned(2):

        

Limited Partner Units

     3,337        3,165        13,061        11,286   

General Partner 2% Interest

     815        633        2,776        2,099   

Incentive Distribution Rights

     2,302        1,397        7,187        3,173   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Atlas Pipeline Cash Distributions Earned(2)

     6,454        5,195        23,024        16,558   
  

 

 

   

 

 

   

 

 

   

 

 

 

per limited partner unit

   $ 0.58      $ 0.55      $ 2.27      $ 1.96   

Total Cash Distributions Earned

     17,134        5,195        54,294        16,558   

E&P Operations Adjusted EBITDA prior to spinoff on March 5, 2012(3)

     —          9,565        9,111        49,182   

Cash general and administrative expenses(4)

     (1,531     5,461        (7,441     (1,615

Other, net

     1        1,237        984        16,224   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(5)

     15,604        21,458        56,948        80,349   

Cash interest expense(6)

     (82     (202     (335     (726

Maintenance capital expenditures(3)

     —          (2,300     (1,231     (9,833
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributable Cash Flow(5)

   $ 15,522      $ 18,956      $ 55,382      $ 69,790   
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions Paid(7)

   $ 15,410      $ 12,310      $ 54,937      $ 41,526   

per limited partner unit

   $ 0.30      $ 0.24      $ 1.07      $ 0.81   

Distribution coverage ratio

     1.0x        1.5x        1.0x        1.7x   

Reconciliation of non-GAAP measures to net income (loss)(5):

        

Distributable cash flow

   $ 15,522      $ 18,956      $ 55,382      $ 69,790   

Distributable cash flow of Transferred Business as of and prior to February 17, 2011 (the date of acquisition)(1)

     —          —          —          8,261   

E&P Operations EBITDA prior to spinoff on March 5, 2012(3)

     —          (9,565     (9,111     (49,182

E&P Operations EBITDA of Transferred Business as of and prior to February 17, 2011(1)

     —          —          —          (8,510

Atlas Resource net loss attributable to ATLS common limited partners

     (11,274     (4,741     (34,718     19,899   

Atlas Resource cash distributions earned by ATLS(2)

     (10,680     —          (31,270     —     

Atlas Pipeline net income attributable to ATLS common limited partners

     2,501        198        15,343        37,753   

Atlas Pipeline cash distributions earned by ATLS(2)

     (6,454     (5,195     (23,024     (16,558

Depreciation and amortization

     —          (1,069     —          (1,069

Non-recurring spinoff and acquisition costs

     —          —          (8,370     (2,087

Amortization of deferred finance costs

     (51     (154     (230     (5,510

Non-cash stock compensation expense

     (4,611     (4,201     (18,237     (13,132

Maintenance capital expenditures(3)

     —          2,300        1,231        9,833   

Other non-cash adjustments

     172        (703     591        215   

Income attributable to non-controlling interests

     (17,042     (5,454     35,532        257,643   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ (31,917   $ (9,628   $ (16,881   $ 307,346   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

In accordance with prevailing accounting literature, ATLS 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

 

12


  operations of the Transferred Business prior to its acquisition date are not attributable to the common limited partners of ATLS, 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 ATLS was unable to identify and allocate such amounts to the Transferred Business for the respective periods.
(2) 

Represents the cash distribution paid by ARP and APL within 45 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter.

(3) 

Represents the E&P Operations Adjusted EBITDA generated and maintenance capital expenditures incurred by ATLS on a stand-alone basis prior to the transfer of its E&P assets to ARP on March 5, 2012.

(4) 

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

(5) 

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 ATLS believes that adjusted EBITDA and distributable cash flow provide additional information for evaluating ATLS’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 ATLS’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.

(6) 

Excludes non-cash amortization of deferred financing costs.

(7) 

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

 

13


ATLAS ENERGY, L.P.

CAPITALIZATION INFORMATION

(unaudited; in thousands)

 

     December 31, 2012  
     Atlas
Energy
    Atlas
Resource
    Atlas
Pipeline
    Consolidated  

Total debt

   $ 9,000      $ 351,425      $ 1,179,918      $ 1,540,343   

Less: Cash

     (10,194     (23,188     (3,398     (36,780
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net debt /(cash)

     (1,194     328,237        1,176,520        1,503,563   

Partners’ capital

     465,870        862,006        1,606,408        2,479,848 (1) 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capitalization

   $ 464,676      $ 1,190,243      $ 2,782,928      $ 3,983,411   
  

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of net debt to capitalization

     0.00x         

 

(1) 

Net of eliminated amounts.

 

     December 31, 2011  
     Atlas
Energy
    Atlas
Resource
    Atlas
Pipeline
    Consolidated  

Total debt

   $ —        $ —        $ 524,140      $ 524,140   

Less: Cash

     (22,500     (54,708     (168     (77,376
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net debt /(cash)

     (22,500     (54,708     523,972        446,764   

Partners’ capital

     584,375        457,175        1,236,228        1,744,081 (2) 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total capitalization

   $ 561,875      $ 402,467      $ 1,760,200      $ 2,190,845   
  

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of net debt to capitalization

     0.00x         

 

(2) 

Net of eliminated amounts.

 

14


ATLAS ENERGY, L.P.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended December 31, 2012

 

     Atlas
Energy
    Atlas
Resource
    Atlas
Pipeline
    Eliminations     Consolidated  

Revenues:

          

Gas and oil production

   $ —        $ 31,578      $ —        $ —        $ 31,578   

Well construction and completion

     —          39,219        —          —          39,219   

Gathering and processing

     —          5,956        354,508        (78     360,386   

Administration and oversight

     —          3,224        —          —          3,224   

Well services

     —          4,697        —          —          4,697   

Loss on mark-to-market derivatives

     —          —          (4,965     —          (4,965

Other, net

     173        66        4,626        —          4,865   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     173        84,740        354,169        (78     439,004   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

          

Gas and oil production

     —          10,377        —          —          10,377   

Well construction and completion

     —          34,197        —          —          34,197   

Gathering and processing

     —          6,306        292,402        (78     298,630   

Well services

     —          2,204        —          —          2,204   

General and administrative

     6,142        20,696        30,093        —          56,931   

Depreciation, depletion and amortization

     —          18,734        24,314        —          43,048   

Asset impairment

     —          9,507        —          —          9,507   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     6,142        102,021        346,809        (78     454,894   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (5,969     (17,281     7,360          (15,890

Gain on asset sales and disposal

     —          39        —          —          39   

Interest expense

     (133     (1,666     (14,091     —          (15,890
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations before tax

     (6,102     (18,908     (6,731     —          (31,741

Income tax expense

     —          —          (176     —          (176
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations

     (6,102     (18,908     (6,907       (31,917

Discontinued operations

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (6,102     (18,908     (6,907     —          (31,917

(Income)/loss attributable to non-controlling interests

     —          —          (1,902     18,944        17,042   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss) attributable to common limited partners

   $ (6,102   $ (18,908   $ (8,809   $ 18,944      $ (14,875
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

15


ATLAS ENERGY, L.P.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended December 31, 2011

 

     Atlas
Energy
    Atlas
Resource
    Atlas
Pipeline
    Eliminations     Consolidated  

Revenues:

          

Gas and oil production

   $ —        $ 15,325      $ —        $ —        $ 15,325   

Well construction and completion

     —          70,947        —          —          70,947   

Gathering and processing

     —          3,698        342,483        (79     346,102   

Administration and oversight

     —          2,668        —          —          2,668   

Well services

     —          4,752        —          —          4,752   

Loss on mark-to-market derivatives

     —          —          (29,405     —          (29,405

Other, net

     531        85        4,530        —          5,146   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     531        97,475        317,608        (79     415,535   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

          

Gas and oil production

     —          5,147        —          —          5,147   

Well construction and completion

     —          60,876        —          —          60,876   

Gathering and processing

     —          4,465        286,841        (79     291,227   

Well services

     —          2,661        —          —          2,661   

General and administrative

     (1,260     15,261        9,537        —          23,538   

Depreciation, depletion and amortization

     1,069        6,850        19,936        —          27,855   

Asset impairment

     —          6,995        —          —          6,995   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     (191     102,255        316,314        (79     418,299   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     722        (4,780     1,294        —          (2,764

Gain on asset sales and disposal

     3        39        528        —          570   

Interest expense

     (356     —          (7,078     —          (7,434

Loss on early extinguishment of debt

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     369        (4,741     (5,256     —          (9,628

Discontinued operations

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     369        (4,741     (5,256     —          (9,628

(Income)/loss attributable to non-controlling interests

     —          —          (1,708     7,162        5,454   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss) attributable to common limited partners

   $ 369      $ (4,741   $ (6,964   $ 7,162      $ (4,174
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

16


ATLAS ENERGY, L.P.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Year Ended December 31, 2012

 

     Atlas
Energy
    Atlas
Resource
    Atlas
Pipeline
    Eliminations     Consolidated  

Revenues:

          

Gas and oil production

   $ —        $ 92,901      $ —        $ —        $ 92,901   

Well construction and completion

     —          131,496        —          —          131,496   

Gathering and processing

     —          16,267        1,203,983        (435     1,219,815   

Administration and oversight

     —          11,810        —          —          11,810   

Well services

     —          20,041        —          —          20,041   

Gain on mark-to-market derivatives

     —          —          31,940        —          31,940   

Other, net

     1,575        (4,886     16,751        —          13,440   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,575        267,629        1,252,674        (435     1,521,443   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

          

Gas and oil production

     —          26,624        —          —          26,624   

Well construction and completion

     —          114,079        —          —          114,079   

Gathering and processing

     —          19,491        990,044        (435     1,009,100   

Well services

     —          9,280        —          —          9,280   

General and administrative

     34,048        69,123        62,606        —          165,777   

Chevron transaction expense

     —          7,670        —          —          7,670   

Depreciation, depletion and amortization

     —          52,582        90,029        —          142,611   

Asset impairment

     —          9,507        —          —          9,507   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     34,048        308,356        1,142,679        (435     1,484,648   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (32,473     (40,727     109,995        —          36,795   

Loss on asset sales and disposal

     —          (6,980     —          —          (6,980

Interest expense

     (565     (4,195     (41,760     —          (46,520
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before tax

     (33,038     (51,902     68,235        —          (16,705

Income tax expense

     —          —          (176     —          (176
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (33,038     (51,902     68,059        —          (16,881

Income attributable to non-controlling interests

     —          —          (6,010     (29,522     (35,532
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common limited partners

   $ (33,038   $ (51,902   $ 62,049      $ (29,522   $ (52,413
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

17


ATLAS ENERGY, L.P.

CONSOLIDATING COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Year Ended December 31, 2011

 

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

Revenues:

          

Gas and oil production

   $ —        $ 66,979      $ —        $ —        $ 66,979   

Well construction and completion

     —          135,283        —          —          135,283   

Gathering and processing

     —          17,746        1,312,007        (335     1,329,418   

Administration and oversight

     —          7,741        —          —          7,741   

Well services

     —          19,803        —          —          19,803   

Loss on mark-to-market derivatives

     —          —          (20,453     —          (20,453

Other, net

     16,602        (30     15,231        —          31,803   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     16,602        247,522        1,306,785        (335     1,570,574   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

          

Gas and oil production

     —          17,100        —          —          17,100   

Well construction and completion

     —          115,630        —          —          115,630   

Gathering and processing

     —          20,842        1,102,544        (335     1,123,051   

Well services

     —          8,738        —          —          8,738   

General and administrative

     16,694        27,536        36,354        —          80,584   

Depreciation, depletion and amortization

     1,069        30,869        77,435        —          109,373   

Asset impairment

     —          6,995        —          —          6,995   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     17,763        227,710        1,216,333        (335     1,461,471   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     (1,161     19,812        90,452        —          109,103   

Gain on asset sales and disposal

     3        87        256,202        —          256,292   

Interest expense

     (6,791     —          (31,603     —          (38,394

Loss on early extinguishment of debt

     —          —          (19,574     —          (19,574
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     (7,949     19,899        295,477        —          307,427   

Discontinued operations

     —          —          (81     —          (81
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (7,949     19,899        295,396        —          307,346   

Income attributable to non-controlling interests

     —          —          (6,200     (251,443     (257,643
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) after non-controlling interests

     (7,949     19,899        289,196        (251,443     49,703   

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 (loss) attributable to common limited partners

   $ (7,949   $ 15,188      $ 289,196      $ (251,443   $ 44,992   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

In accordance with prevailing accounting literature, ATLS 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 ATLS, 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 ATLS was unable to identify and allocate such amounts to the Transferred Business for the respective periods.

 

18


ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

December 31, 2012

 

     Atlas
Energy
     Atlas
Resource
    Atlas
Pipeline
    Eliminations     Consolidated  
ASSETS            

Current assets:

           

Cash and cash equivalents

   $ 10,194       $ 23,188      $ 3,398      $ —        $ 36,780   

Accounts receivable

     5         38,718        157,526        —          196,249   

Receivable from (advances from) affiliates

     11,353         (5,853     (5,500     —          —     

Current portion of derivative asset

     —           12,274        23,077        —          35,351   

Subscriptions receivable

     —           55,357        —          —          55,357   

Prepaid expenses and other

     118         9,063        36,074        —          45,255   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     21,670         132,747        214,575        —          368,992   

Property, plant and equipment, net

     —           1,302,228        2,200,381        —          3,502,609   

Goodwill and intangible assets, net

     —           33,104        518,645        —          551,749   

Long-term derivative asset

     —           8,898        7,942        —          16,840   

Investment in joint venture

     —           —          86,002        —          86,002   

Investment in subsidiaries

     454,436         —          —          (454,436     —     

Other assets, net

     22,287         16,122        32,593        —          71,002   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   $ 498,393       $ 1,493,099      $ 3,060,138      $ (454,436   $ 4,597,194   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
LIABILITIES AND PARTNERS’ CAPITAL            

Current liabilities:

           

Current portion of long-term debt

   $ —         $ —        $ 10,835      $ —        $ 10,835   

Accounts payable

     171         59,549        59,308        —          119,028   

Liabilities associated with drilling contracts

     —           67,293        —          —          67,293   

Accrued producer liabilities

     —           —          109,725        —          109,725   

Current portion of derivative payable to Drilling Partnerships

     —           11,293        —          —          11,293   

Accrued interest

     4         1,153        10,399        —          11,556   

Accrued well drilling and completion costs

     —           47,637        —          —          47,637   

Accrued liabilities

     21,304         24,235        57,752        —          103,291   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     21,479         211,160        248,019        —          480,658   

Long-term debt, less current portion

     9,000         351,425        1,169,083        —          1,529,508   

Long-term derivative liability

     —           888        —          —          888   

Long-term derivative payable to Drilling Partnerships

     —           2,429        —          —          2,429   

Deferred income taxes, net

     —           —          30,258        —          30,258   

Asset retirement obligations and other

     2,044         65,191        6,370        —          73,605   

Partners’ Capital:

           

Common limited partners’ interests

     456,171         840,437        1,539,177        (2,379,614     456,171   

Accumulated other comprehensive income

     9,699         21,569        —          (21,569     9,699   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     465,870         862,006        1,539,177        (2,401,183     465,870   

Non-controlling interests

     —           —          67,231        1,946,747        2,013,978   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total partners’ capital

     465,870         862,006        1,606,408        (454,436     2,479,848   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   $ 498,393       $ 1,493,099      $ 3,060,138      $ (454,436   $ 4,597,194   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

19


ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

December 31, 2011

 

     Atlas
Energy
     Atlas
Resource
    Atlas
Pipeline
    Eliminations     Consolidated  
ASSETS            

Current assets:

           

Cash and cash equivalents

   $ 22,500       $ 54,708      $ 168      $ —        $ 77,376   

Accounts receivable

     869         20,572        115,412        —          136,853   

Receivable from (advances from) affiliates

     3,928         (1,253     (2,675     —          —     

Current portion of derivative asset

     —           13,802        1,645        —          15,447   

Subscriptions receivable

     —           34,455        —          —          34,455   

Prepaid expenses and other

     1,462         7,676        15,641        —          24,779   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     28,759         129,960        130,191        —          288,910   

Property, plant and equipment, net

     4,571         520,883        1,567,829        —          2,093,283   

Goodwill and intangible assets, net

     —           33,285        103,276        —          136,561   

Long-term derivative asset

     —           16,127        14,814        —          30,941   

Investment in joint venture

     —           —          86,879        —          86,879   

Investment in subsidiaries

     533,697         —          —          (533,697     —     

Other assets, net

     22,190         858        25,149        —          48,197   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   $ 589,217       $ 701,113      $ 1,928,138      $ (533,697   $ 2,684,771   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
LIABILITIES AND PARTNERS’ CAPITAL            

Current liabilities:

           

Current portion of long-term debt

   $ —         $ —        $ 2,085      $ —        $ 2,085   

Accounts payable

     2,179         36,731        54,644        —          93,554   

Liabilities associated with drilling contracts

     —           71,719        —          —          71,719   

Accrued producer liabilities

     —           —          88,096        —          88,096   

Current portion of derivative payable to Drilling Partnerships

     —           20,900        —          —          20,900   

Accrued interest

     5         —          1,624        —          1,629   

Accrued well drilling and completion costs

     —           17,585        —          —          17,585   

Accrued liabilities

     2,418         35,952        23,283        —          61,653   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

     4,602         182,887        169,732        —          357,221   
            —       

Long-term debt, less current portion

     —           —          522,055        —          522,055   

Long-term derivative payable to Drilling Partnerships

     —           15,272        —          —          15,272   

Asset retirement obligations and other

     240         45,779        123        —          46,142   

Partners’ Capital:

           

Common limited partners’ interests

     554,999         427,246        1,269,019        (1,696,265     554,999   

Accumulated other comprehensive income (loss)

     29,376         29,929        (4,390     (25,539     29,376   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     584,375         457,175        1,264,629        (1,721,804     584,375   

Non-controlling interests

     —           —          (28,401     1,188,107        1,159,706   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total partners’ capital

     584,375         457,175        1,236,228        (533,697     1,744,081   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   $ 589,217       $ 701,113      $ 1,928,138      $ (533,697   $ 2,684,771   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

20


ATLAS ENERGY, L.P.

Ownership Interests Summary

 

Atlas Energy Ownership Interests as of December 31, 2012:

   Amount     Overall
Ownership
Interest
Percentage
 

ATLAS RESOURCE:

    

General partner interest

     100     2.0

Common units

     20,962,485        43.0

Incentive distribution rights

     100     N/A   
    

 

 

 

Total Atlas Energy ownership interests in Atlas Resource

       45.0
    

 

 

 

ATLAS PIPELINE:

    

General partner interest

     100     2.0

Common units

     5,754,253        8.7

Incentive distribution rights

     100     N/A   
    

 

 

 

Total Atlas Energy ownership interests in Atlas Pipeline

       10.7
    

 

 

 

LIGHTFOOT CAPITAL PARTNERS, GP LLC:

    

Approximate general partner ownership interest

       15.9

Approximate limited partner ownership interest

       12.1

 

21