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May 5, 2015 newswires No comments Views: 0

Atlas Energy Group, LLC Reports Operating And Financial Results For The First Quarter 2015

PITTSBURGH, May 5, 2015 /PRNewswire/ -- Atlas Energy Group, LLC (NYSE: ATLS) ("Atlas Energy", "the Company" or "ATLS") today reported operating and financial results for the first quarter 2015.

  • Atlas Resource Partners, L.P. (NYSE: ARP), Atlas Energy's E&P subsidiary, paid monthly cash distributions totaling $0.325 per common limited partner unit for the first quarter 2015. The most recent ARP distribution for March 2015 will be paid on May 15, 2015 to holders of record as of May 8, 2015. Atlas Energy received $9.3 million in cash distributions in the first quarter 2015 from its common and preferred unit ownership in ARP. ATLS expects to pay a full quarterly distribution in August 2015 for the second quarter 2015. ATLS began trading publicly on March 2, 2015 following the spin-off from its former parent, Atlas Energy, L.P., which was sold to Targa Resources Corp. in the first quarter 2015.
  • ATLS had net production of approximately 10.7 million cubic feet equivalents per day ("Mmcfed") in the first quarter 2015 from its Arkoma assets, with production margin of approximately $2.0 million in the period. Production in the Arkoma region was partially affected by the severe winter weather which occurred during the current period.
  • Arc Logistics Partners, LP (NYSE: ARCX), a master limited partnership of which 16% of its general partner is owned by ATLS through the Company's interest in Lightfoot Capital Partners, acquired certain crude oil terminal assets in Joliet, IL through a joint venture with GE Energy Financial Services for $216 million in February 2015. ATLS received $455,000 in cash distributions in the first quarter 2015 from Lightfoot Capital.

Recent Events

ATLS Term Loan and Preferred Private Placement

In February 2015, ATLS paid $150 million owed to its former parent, Atlas Energy, L.P., to facilitate the closing of the merger transaction between Atlas Energy and Targa Resources Corp. These repayment funds were generated from $116 million of term loan facilities ("Term Loan") and a private placement of $40 million of newly-issued ATLS Class A Preferred Units ("Preferred Units").

The Term Loan, which bears interest at LIBOR (1% floor) + 7.5%, matures in February 2016. The Term Loan also calls for repayment of $30 million within six months from February 26, 2015, the date of issuance. Under the terms of the Preferred Unit agreement, the Company issued approximately 1,600,000 Preferred Units with a liquidation preference of $25, which will be convertible into ATLS common units by the holders following the later of February 27, 2016 and receipt of unitholder approval for such conversion.

ARP's First Quarter 2015 Highlights

  • ARP's average net daily production for the first quarter 2015 was 270.8 million cubic feet equivalents per day ("Mmcfed"), approximately 10% higher than the prior year first quarter. The increase in net production from the prior year first quarter was due primarily to the acquisition of the Eagle Ford assets in November 2014, as well as the Rangely Field assets in June 2014 and the GeoMet natural gas production assets in May 2014.
  • ARP's net realized price for natural gas including the effect of hedge positions was $3.59 per thousand cubic feet ("mcf") for the first quarter 2015, compared to $3.66/mcf for the fourth quarter 2014. Net realized oil prices including the effect of hedge positions averaged $80.81 per barrel ("bbl") for the first quarter 2015, compared to $84.81/bbl for the fourth quarter 2014.
  • Investment partnership margin at ARP contributed $8.8 million to Adjusted EBITDA and distributable cash flow for the first quarter 2015, compared with $11.1 million for the prior year comparable quarter.  The decrease in investment partnership margin was due to higher amounts of capital deployed during the prior year quarter from the acceleration of drilling activity in the first quarter 2014.
  • On February 23, 2015, ARP obtained $250 million in second lien financing from GSO Capital, which matures in 2020. The second lien has an effective annual interest rate of LIBOR + 9%, and is subordinate to the Company's senior secured credit facility. ARP also reached an agreement with its lending group to amend to its senior secured credit facility in order to increase certain leverage covenants as a result of the recent commodity environment. Both the second lien financing and the credit facility amendment have provided ARP with additional financial flexibility and liquidity.
  • ARP continued to expand its commodity hedge positions on its existing production. During the first quarter 2015, ARP was approximately 89% hedged on its net oil production and approximately 80% hedged on its net natural gas production. In addition, ARP is approximately hedged 72%, 68% and 63% for its natural gas production at an average price of $4.23/mcf, and hedged approximately 94%, 77% and 56% for oil in 2015, 2016 and 2017, respectively, at an average price of $82/bbl, based on first quarter 2015 average production.

ATLS owns 100% of the general partner Class A units and the incentive distribution rights, and an approximate 28% 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 an adjustment to net income in ATLS' consolidated statements of operations and as a component of unitholders' equity 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 first quarter 2015 earnings release for additional details on its financial results.

Corporate Expenses

  • Cash general and administrative expense, excluding amounts attributable to the Development Subsidiary and ARP, was $3.4 million for the first quarter 2015, relatively consistent with $3.2 million for the prior year comparable quarter. The slight increase in expense from the prior year quarter was due primarily to certain public company costs incurred subsequent to ATLS's unit distribution, which were applicable to ATLS' parent company, Atlas Energy, L.P., in the prior year quarter.  Please refer to the consolidating statements of operations provided in the financial tables of this release.
  • Cash interest expense subsequent to ATLS's unit distribution on February 27, 2015, excluding amounts attributable to ARP, was $1.0 million for the first quarter 2015, compared to $2.5 million allocated by Atlas Energy, L.P. to ATLS for the prior year comparable quarter. The lower amount of interest expense compared to the prior year was due primarily to interest expense on Atlas Energy. L.P.'s $240 million term loan credit facility, which was repaid in conjunction with Atlas Energy, L.P.'s merger with Targa Resources Corp. in February 2015. As of March 31, 2015, ATLS had approximately $116 million of total debt, and a cash position of approximately $6 million.

Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Energy Group, LLC's first quarter 2015 results on Wednesday, May 6, 2015 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 1:00 p.m. ET on May 6, 2015 by dialing 855-859-2056, passcode: 33615010.

Atlas Energy Group, LLC (NYSE: ATLS) is a limited liability company which owns the following interests: all of the general partner interest, incentive distribution rights and an approximate 28% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P.; the general partner interests, incentive distribution rights and limited partner interests in its private E&P Development Subsidiary; and a general partner interest in Lightfoot Capital Partners, an entity that invests directly in energy-related businesses and assets. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at [email protected].

Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration & production master limited partnership which owns an interest in over 14,500 producing natural gas and oil wells, located primarily in Appalachia, the Eagle Ford Shale (TX), the Barnett Shale (TX), the Mississippi Lime (OK), the Raton Basin (NM), the Black Warrior Basin (AL) and the Rangely Field in Colorado.  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 [email protected].

Cautionary Note Regarding Forward-Looking Statements

This press release 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 and production potential, planned expansions of capacity and other capital expenditures, distribution amounts, 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; ability to realize the benefits of its acquisitions; changes in commodity prices and hedge positions; 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' and ARP'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.

CONTACT:

Brian J. Begley

Vice President - Investor Relations

Atlas Energy Group, LLC

(877) 280-2857

(215) 405-2718 (fax)

 


ATLAS ENERGY GROUP, LLC
CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS
 (unaudited; in thousands, except per unit data)

Three Months Ended

March 31,

Revenues:

2015

2014

      Gas and oil production

$    106,560

$  100,825

      Well construction and completion

23,655

49,377

      Gathering and processing

2,184

4,468

      Administration and oversight

1,259

1,729

      Well services

6,624

5,479

      Gain on mark-to-market derivatives

105,585

—

Other, net

(68)

269

          Total revenues

245,799

162,147

Costs and expenses:

      Gas and oil production

45,989

38,758

      Well construction and completion

20,570

42,936

      Gathering and processing

2,417

4,413

      Well services

2,198

2,482

      General and administrative

41,928

21,391

Depreciation, depletion and amortization

44,456

52,039

          Total costs and expenses

157,558

162,019

Operating income

88,241

128

Loss on asset sales and disposal

(11)

(1,603)

Interest expense

(34,751)

(15,976)

Net income (loss)

53,479

(17,451)

(Income) loss attributable to non-controlling interests

(58,298)

10,308

Net loss attributable to unitholders'/owner interests

$       (4,819)

$       (7,143)

Allocation of net income (loss) attributable to unitholders/owner:

Portion applicable to owner's interest (period prior to the transfer of assets on February 27, 2015)

$    (10,475)

$       (7,143)

Portion applicable to unitholders' interest (period subsequent to the transfer of assets on February 27, 2015)

5,656

—

Net loss attributable to unitholders' interests/owner

$       (4,819)

$       (7,143)

Net loss attributable to unitholders per common unit:

Basic

$            0.22

$               —

Diluted

$            0.18

$               —

Weighted average common units outstanding:

Basic

26,011

—

Diluted

30,936

—

 


ATLAS ENERGY GROUP, LLC
CONSOLIDATED COMBINED BALANCE SHEETS
 (unaudited; in thousands)

March 31,

December 31,

ASSETS

2015

2014

Current assets:

      Cash and cash equivalents

$           13,542

$           58,358

      Accounts receivable

97,376

115,290

      Advances to affiliates

-

4,389

      Current portion of derivative asset

146,446

144,259

      Subscriptions receivable

-

32,398

      Prepaid expenses and other

28,697

26,789

          Total current assets

286,061

381,483

Property, plant and equipment, net

2,406,724

2,419,289

Intangible assets, net

632

691

Goodwill, net

13,639

13,639

Long-term derivative asset

186,718

130,602

Other assets, net

83,208

80,611

$     2,976,982

$     3,026,315

LIABILITIES AND UNITHOLDERS'/OWNER'S EQUITY

Current liabilities:

      Current portion of long-term debt

$         104,419

$             1,500

      Accounts payable

104,479

123,670

      Liabilities associated with drilling contracts

16,956

40,611

      Accrued interest

12,190

26,479

      Accrued well drilling and completion costs

45,041

92,910

      Accrued liabilities

98,607

170,786

          Total current liabilities

381,692

455,956

Long-term debt, less current portion

1,500,178

1,541,085

Asset retirement obligations and other

117,818

114,059

Commitments and contingencies

Unitholders'/owner's equity:

      Owner's equity

—

147,308

      Common unitholders' equity

122,924

—

      Series A preferred equity

40,000

—

      Accumulated other comprehensive income

46,020

54,008

208,944

201,316

      Non-controlling interests

768,350

713,899

Total unitholders'/owners' equity

977,294

915,215

$      2,976,982

$      3,026,315

 

ATLAS ENERGY GROUP, LLC
Financial and Operating Highlights
(unaudited)

Three Months Ended

March 31,

2015

2014

Net income attributable to unitholders per common unit - basic

$         0.22

$             —

Production volume: (1)(2)

  ATLAS ENERGY:

Natural gas (Mcfd)

11,381

11,502

Oil (Bpd)

490

50

Natural gas liquids (Bpd)

100

31

Total (Mcfed)

14,920

11,991

  ATLAS RESOURCES:

Natural gas (Mcfd)

216,687

216,688

Oil (Bpd)

5,533

1,568

Natural gas liquids (Bpd)

3,488

3,422

Total (Mcfed)

270,811

246,628

  TOTAL:

Natural gas (Mcfd)

228,068

228,191

Oil (Bpd)

6,023

1,618

Natural gas liquids (Bpd)

3,588

3,453

Total (Mcfed)

285,731

258,619

Average realized sales prices:(2)

  ATLAS ENERGY:

Natural gas (per Mcf) (3)

$          3.37

$          3.98

Oil (per Bbl)

$        45.68

$        82.71

Natural gas liquids (per Bbl)

$       13.25

$       29.28

  ATLAS RESOURCES:

Natural gas (per Mcf) (3)

$          3.59

$          4.07

Oil (per Bbl)(4)

$        80.81

$        87.04

Natural gas liquids (per Bbl) (5)

$       22.49

$       31.73

Production costs per Mcfe:(2)(6)

  ATLAS ENERGY:

Lease operating expenses per Mcfe

$          0.88

$          1.03

Production taxes per Mcfe

0.19

0.29

Transportation and compression expenses per Mcfe

0.24

0.50

Total production costs per Mcfe

$          1.32

$          1.82

  ATLAS RESOURCES:

Lease operating expenses per Mcfe

$          1.37

$          1.17

Production taxes per Mcfe

0.24

0.27

Transportation and compression expenses per Mcfe

0.22

0.29

Total production costs per Mcfe

$          1.84

$          1.73

  TOTAL:

Lease operating expenses per Mcfe

$          1.35

$          1.16

Production taxes per Mcfe

0.24

0.27

Transportation and compression expenses per Mcfe

0.22

0.30

Total production costs per Mcfe

$          1.81

$          1.74

(1)   Production quantities consist of the sum of (i) the proportionate share of production from wells in which ATLS and ARP have a direct interest, based on the 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.

(2)   "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.

(3)   ATLS' average sales price for natural gas before the effects of financial hedging was $2.64 per Mcf and $4.49 per Mcf for the three months ended March 31, 2015 and 2014, respectively. ARP's average sales prices for natural gas before the effects of financial hedging were $2.53 per Mcf and $4.68 per Mcf for the three months ended March 31, 2015 and 2014, respectively. ARP's amounts exclude the impact of subordination of ARP's production revenues to investor partners within its investor partnerships.  Including the effects of this subordination, ARP's average natural gas sales prices were $3.53 per Mcf ($2.48 per Mcf before the effects of financial hedging) and $3.80 per Mcf ($4.42 per Mcf before the effects of financial hedging) for the three months ended March 31, 2015 and 2014, respectively. 

(4)   ARP's average sales prices for oil before the effects of financial hedging were $43.46 per barrel and $93.18 per barrel for the three months ended March 31, 2015 and 2014, respectively.

(5)   ARP's average sales prices for natural gas liquids before the effects of financial hedging were $14.10 per barrel and $35.65 per barrel for the three months ended March 31, 2015 and 2014, respectively.

(6)   Production costs include labor to operate the wells and related equipment, repairs and maintenance, materials and supplies, property taxes, severance taxes, insurance, production overhead and transportation and compression expenses.  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, ARP's lease operating expenses per Mcfe were $1.35 per Mcfe ($1.81 per Mcfe for total production costs) and $1.10 per Mcfe ($1.66 per Mcfe for total production costs) for the three months ended March 31, 2015 and 2014, respectively. Including the effects of these costs, total lease operating expenses per Mcfe were $1.32 per Mcfe ($1.79 per Mcfe for total production costs) and $1.09 per Mcfe ($1.67 per Mcfe for total production costs) for the three months ended March 31, 2015 and 2014, respectively.

ATLAS ENERGY GROUP, LLC
Financial Information
(unaudited; in thousands except per unit amounts)

Three Months Ended

March 31,

Reconciliation of net income (loss) to non-GAAP measures(1):

2015

2014

Net income (loss)

$      53,479

$   (17,451)

Distributable cash flow not attributable to unitholders prior to February 27, 2015
(the asset transfer date)(2)

 

(5,365)

 

(14,229)

Atlas Resource net (income) loss attributable to unitholders

(23,249)

1,697

Atlas Resource cash distributions earned by ATLS(3)

9,334

17,497

Development Subsidiary net loss attributable to unitholders

64

255

Development Subsidiary cash distributions earned by ATLS(3)

72

39

Non-recurring spinoff and acquisition costs

17,174

77

Amortization of deferred finance costs and predecessor

    Term Loan interest expense

 

8,551

 

309

Depreciation, depletion and amortization

1,125

1,582

Non-cash stock compensation expense

20

—

Maintenance capital expenditures(4)

(300)

(300)

Preferred unit distributions

(333)

—

Unrealized gain on mark-to-market derivatives

(1,062)

—

Other non-cash adjustments

557

216

(Income) loss attributable to non-controlling interests

(58,298)

10,308

Distributable Cash Flow attributable to unitholders(1)

$         1,769

$               —

Supplemental Adjusted EBITDA and Distributable Cash Flow Summary:

Atlas Resource Cash Distributions Earned(3):

Limited Partner Units

$         8,726

$      14,333

Series A Preferred Units (2%)

608

869

Incentive Distribution Rights

—

2,295

Total Atlas Resource Cash Distributions Earned(3)

9,334

17,497

per limited partner unit

$          0.325

$          0.580

Development Subsidiary Cash Distributions Earned(3)

72

39

Total Cash Distributions Earned

9,406

17,536

Production Margin

1,999

2,279

Cash general and administrative expenses(5)

(3,369)

(3,244)

Other, net

734

438

Adjusted EBITDA(1)

8,770

17,009

Cash interest expense(6)

(1,003)

(2,480)

Preferred unit distributions

(333)

—

Maintenance capital expenditures(4)

(300)

(300)

Distributable Cash Flow(1)

$         7,134

$      14,229

Distributable cash flow not attributable to unitholders prior to February 27, 2015
(the asset transfer date)(2)

 

(5,365)

 

(14,229)

Distributable Cash Flow attributable to unitholders(1)

$         1,769

$               —

(1)EBITDA and Distributable Cash Flow is relevant and useful because it helps ATLS' investors understand its operating performance, allows for easier comparison of its results with other master limited partnerships ("MLP"), and is a critical component in the determination of quarterly cash distributions. As a MLP, ATLS is required to distribute 100% of available cash, as defined in its limited partnership agreement ("Available Cash") and subject to cash reserves established by its general partner, to investors on a quarterly basis.  ATLS refers to Available Cash prior to the establishment of cash reserves as DCF. EBITDA, Adjusted EBITDA and DCF should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. While ATLS's management believes that its methodology of calculating EBITDA, Adjusted EBITDA and DCF is generally consistent with the common practice of other MLPs, such metrics may not be consistent and, as such, may not be comparable to measures reported by other MLPs, who may use other adjustments related to their specific businesses. EBITDA, Adjusted EBITDA and DCF are supplemental financial measures used by ATLS' management and by external users of ATLS' financial statements such as investors, lenders under its credit facilities, research analysts, rating agencies and others to assess its:

  • Operating performance as compared to other publicly traded partnerships and other companies in the upstream and midstream energy sectors, without regard to financing methods, historical cost basis or capital structure;
  • Ability to generate sufficient cash flows to support its distributions to unitholders;
  • Ability to incur and service debt and fund capital expansion;
  • Viability of potential acquisitions and other capital expenditure projects; and
  • Ability to comply with financial covenants in its debt facility, which is calculated based upon Adjusted EBITDA

DCF is determined by calculating EBITDA, adjusting it for non-cash, non-recurring and other items to achieve Adjusted EBITDA, and then deducting cash interest expense and maintenance capital expenditures.  ATLS defines EBITDA as net income (loss) plus the following adjustments:

  • Interest expense;
  • Income tax expense;
  • Depreciation, depletion and amortization

ATLS defines Adjusted EBITDA as EBITDA plus the following adjustments:

  • Cash distributions paid by ARP and the Development Subsidiary within 45 days after the end of the respective quarter, based upon their distributable cash flow generated during that quarter;
  • Asset impairments;
  • Acquisition and related costs;
  • Non-cash stock compensation;
  • (Gains) losses on asset disposal;
  • Cash proceeds received from monetization of derivative transactions;
  • Amortization of premiums paid on swaption derivative contracts; and
  • Other items

ATLS adjusts DCF for non-cash, non-recurring and other items for the sole purpose of evaluating its cash distribution for the quarterly period, with EBITDA and Adjusted EBITDA adjusted in the same manner for consistency.  ATLS defines DCF as Adjusted EBITDA less the following adjustments:

  • Cash interest expense; and
  • Maintenance capital expenditures

(2)In accordance with prevailing accounting literature, ATLS has adjusted its historical financial statements to present them combined with the historical financial results of the spin-off assets for all periods prior to its spin-off date of February 27, 2015

(3)Represents the cash distribution paid by ARP and its new Development Subsidiary within 45 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter

(4)Production from oil and gas assets naturally decline in future periods and, as such, ATLS recognizes the estimated capitalized cost of stemming such decline in production margin for the purpose of stabilizing its DCF and cash distributions, which it refers to as maintenance capital expenditures. ATLS calculates the estimate of maintenance capital expenditures by first multiplying its forecasted future full year production margin by its expected aggregate production decline of proved developed producing wells.  Maintenance capital expenditures are then the estimated capitalized cost of wells that will generate an estimated first year margin equivalent to the production margin decline, assuming such wells are connected on the first day of the calendar year.  ATLS does not incur specific capital expenditures expressly for the purpose of maintaining or increasing production margin, but such amounts are a hypothetical subset of wells it expects to drill in future periods on undeveloped acreage already leased.  Estimated capitalized cost of wells included within maintenance capital expenditures are also based upon relevant factors, including utilization of public forward commodity exchange prices, current estimates for regional pricing differentials, estimated labor and material rates and other production costs.  Generally, estimates for maintenance capital expenditures in the current year are the sum of the estimate calculated in the prior year plus estimates for the decline in production margin from wells connected during the current year and production acquired through acquisitions.  ATLS considers expansion capital expenditures to be any capital expenditure costs expended that are not maintenance capital expenditures – generally, this will include expenditures to increase, rather than maintain, production margin in future periods, as well as land, gathering and processing, and other non-drilling capital expenditures

(5)Excludes non-cash stock compensation expense and certain non-recurring spinoff costs and acquisition and related costs

(6)Excludes non-cash amortization of deferred financing costs

ATLAS ENERGY GROUP, LLC
CAPITALIZATION INFORMATION
(unaudited; in thousands)

March 31, 2015

Atlas

Atlas

Energy

Resource

Consolidated

Total debt

$        104,419

$1,500,178

$     1,604,597

Less:  Cash

(10,960)

(2,582)

(13,542)

Total net debt

93,459

1,497,596

1,591,055

Unitholders' equity

288,921

929,630

      977,294(1)

Total capitalization

$        382,380

$2,427,226

$    2,568,349

Ratio of net debt to capitalization

0.24x

(1)             Net of eliminated amounts

December 31, 2014

Atlas

Atlas

Energy

Resource

Consolidated

Total debt

$        148,125

$1,394,460

$   1,542,585

Less:  Cash

(43,111)

(15,247)

(58,358)

Total net debt

105,014

1,379,213

1,484,227

Owner's equity

267,637

885,496

      915,215(2)

Total capitalization

$        372,651

$2,264,709

$    2,399,442

Ratio of net debt to capitalization

0.28x

(2)             Net of eliminated amounts

 

ATLAS ENERGY GROUP, LLC
Hedge Position Summary – Directly-Held E&P Assets
(as of May 5, 2015)

Natural Gas

Fixed Price Swaps

Average

Production Period

Fixed Price

Volumes

Ended December 31,

(per mmbtu)(a)

(mmbtus)(a)

2015(b)

$    4.30

570,000

(a)  "mmbtu" represents million metric British thermal units.

(b)  Reflects hedges covering the last nine months of 2015.

 

ATLAS ENERGY GROUP, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS
(unaudited; in thousands)

Three Months Ended March 31, 2015

Atlas

Atlas

Energy

Resource

Eliminations

Consolidated

Revenues:

      Gas and oil production

$         5,588

$    100,972

$                 -

$    106,560

      Well construction and completion

-

23,655

-

23,655

      Gathering and processing

-

2,184

-

2,184

      Administration and oversight

-

1,259

-

1,259

      Well services

-

6,624

-

6,624

      Gain on mark-to-market derivatives

1,062

104,523

-

105,585

Other, net

(98)

30

-

(68)

          Total revenues

6,552

239,247

-

245,799

Costs and expenses:

      Gas and oil production

1,769

44,220

-

45,989

      Well construction and completion

-

20,570

-

20,570

      Gathering and processing

-

2,417

-

2,417

      Well services

-

2,198

-

2,198

      General and administrative

24,797

17,131

-

41,928

Depreciation, depletion and amortization

2,590

41,866

-

44,456

          Total costs and expenses

29,156

128,402

-

157,558

Operating income (loss)

(22,604)

110,845

-

88,241

Loss on asset sales and disposal

-

(11)

-

(11)

Interest expense

(9,554)

(25,197)

-

(34,751)

Net income (loss)

(32,158)

85,637

-

53,479

  Income attributable to non-controlling interests

 

-

 

-

 

(58,298)

 

(58,298)

Net income (loss) attributable to unitholders

 

$     (32,158)

 

$      85,637

 

$     (58,298)

 

$       (4,819)

 

ATLAS ENERGY GROUP, LLC
CONSOLIDATING STATEMENTS OF OPERATIONS
 (unaudited; in thousands)

Three Months Ended March 31, 2014

Atlas

Atlas

Energy

Resource

Eliminations

Consolidated

Revenues:

      Gas and oil production

$         4,580

$      96,245

$                 -

$    100,825

      Well construction and completion

-

49,377

-

49,377

      Gathering and processing

-

4,468

-

4,468

      Administration and oversight

-

1,729

-

1,729

      Well services

-

5,479

-

5,479

Other, net

222

47

-

269

          Total revenues

4,802

157,345

-

162,147

Costs and expenses:

      Gas and oil production

1,966

36,792

-

38,758

      Well construction and completion

-

42,936

-

42,936

      Gathering and processing

-

4,413

-

4,413

      Well services

-

2,482

-

2,482

      General and administrative

4,936

16,455

-

21,391

Depreciation, depletion and amortization

 

1,802

 

50,237

 

-

 

52,039

          Total costs and expenses

8,704

153,315

-

162,019

Operating income (loss)

(3,902)

4,030

-

128

Loss on asset sales and disposal

-

(1,603)

-

(1,603)

Interest expense

(2,789)

(13,187)

-

(15,976)

Net loss

(6,691)

(10,760)

-

(17,451)

  Loss attributable to non-controlling interests

 

-

 

-

 

10,308

 

10,308

Net loss attributable to owner

$       (6,691)

$     (10,760)

$      10,308

$       (7,143)

 

ATLAS ENERGY GROUP, LLC
CONDENSED CONSOLIDATING BALANCE SHEETS
(unaudited; in thousands)

March 31, 2015

Atlas

Atlas

ASSETS

Energy

Resource

Eliminations

Consolidated

Current assets:

      Cash and cash equivalents

$      10,960

$       2,582

$                 -

$         13,542

      Accounts receivable

6,338

94,150

(3,112)

97,376

      Receivable from (advances from)

          affiliates

 

(21,328)

 

21,328

 

-

 

-

      Current portion of derivative asset

947

145,499

-

146,446

      Prepaid expenses and other

841

27,856

-

28,697

          Total current assets

(2,242)

291,415

(3,112)

286,061

Property, plant and equipment, net

208,288

2,198,436

-

2,406,724

Intangible assets, net

-

632

-

632

Goodwill, net

-

13,639

-

13,639

Long-term derivative asset

-

186,718

-

186,718

Investment in subsidiaries

244,369

-

(244,369)

-

Other assets, net

23,360

56,736

3,112

83,208

$    473,775

$  2,747,576

$   (244,369)

$ 2,976,982

LIABILITIES AND UNITHOLDERS' EQUITY

Current liabilities:

      Current portion of long-term debt

$    104,419

$               -

$                 -

$      104,419

      Accounts payable

10,931

93,548

-

104,479

      Liabilities associated with drilling

          contracts

 

-

 

16,956

 

-

 

16,956

      Accrued interest

766

11,424

-

12,190

      Accrued well drilling and completion

          costs

 

2,489

 

42,552

 

-

 

45,041

      Accrued liabilities

58,993

42,726

(3,112)

98,607

          Total current liabilities

177,598

207,206

(3,112)

381,692

Long-term debt, less current portion

-

1,500,178

-

1,500,178

Asset retirement obligations and other

7,256

110,562

-

117,818

Unitholders' equity:

      Common unitholders' equity

122,924

-

-

122,924

      Series A preferred equity

40,000

-

-

40,000

      Partners' capital

-

770,317

(770,317)

-

      Accumulated other comprehensive

          income

 

46,020

 

159,313

 

(159,313)

 

46,020

208,944

929,630

(929,630)

208,944

      Non-controlling interests

79,977

-

688,373

768,350

          Total unitholders' equity

288,921

929,630

(241,257)

977,294

$    473,775

$  2,747,576

$ (244,369)

$   2,976,982

 


ATLAS ENERGY GROUP, LLC
CONDENSED CONSOLIDATING BALANCE SHEETS
(unaudited; in thousands)

December 31, 2014

Atlas

Atlas

ASSETS

Energy

Resource

Eliminations

Consolidated

Current assets:

      Cash and cash equivalents

$     43,111

$      15,247

$                 -

$         58,358

      Accounts receivable

9,489

112,038

(6,237)

115,290

      Receivable from (advances to)

          affiliates

 

8,660

 

(4,271)

 

-

 

4,389

      Current portion of derivative asset

2,893

141,366

-

144,259

      Subscriptions receivable

-

32,398

-

32,398

      Prepaid expenses and other

778

26,011

-

26,789

          Total current assets

64,931

322,789

(6,237)

381,483

Property, plant and equipment, net

211,118

2,208,171

-

2,419,289

Intangible assets, net

-

691

-

691

Goodwill, net

-

13,639

-

13,639

Long-term derivative asset

2,669

127,933

-

130,602

Investment in subsidiaries

244,155

-

(244,155)

-

Other assets, net

24,293

50,081

6,237

80,611

$   547,166

$ 2,723,304

$   (244,155)

$ 3,026,315

LIABILITIES AND OWNER'S EQUITY

Current liabilities:

      Current portion of long-term debt

$       1,500

$                 -

$                 -

$           1,500

      Accounts payable

14,621

109,049

-

123,670

      Liabilities associated with drilling

          contracts

 

-

 

40,611

 

-

 

40,611

      Accrued interest

27

26,452

-

26,479

      Accrued well drilling and completion

          costs

 

12,506

 

80,404

 

-

 

92,910

      Accrued liabilities

98,752

78,271

(6,237)

170,786

          Total current liabilities

127,406

334,787

(6,237)

455,956

Long-term debt, less current portion

146,625

1,394,460

-

1,541,085

Asset retirement obligations and other

5,498

108,561

-

114,059

Owner's equity:

      Owner's equity

147,308

-

-

147,308

      Partners' capital

-

699,587

(699,587)

-

      Accumulated other comprehensive

          income

 

54,008

 

185,909

 

(185,909)

 

54,008

201,316

885,496

(885,496)

201,316

      Non-controlling interests

66,321

-

647,578

713,899

          Total owners' equity

267,637

885,496

(237,918)

915,215

$   547,166

$ 2,723,304

$   (244,155)

$   3,026,315

 

ATLAS ENERGY GROUP, LLC
Ownership Interests Summary

Atlas Energy Ownership Interests as of March 31, 2015:

Amount

Overall

Ownership

Interest

Percentage

ATLAS RESOURCE:

      General partner interest

100%

2.0%

      Common units

20,962,485

23.3%

      Preferred units

3,749,986

4.2%

      Incentive distribution rights

100%

N/A

            Total Atlas Energy ownership interests in Atlas Resource

29.5%

DEVELOPMENT SUBSIDIARY:

      General partner interest

80.0%

2.0%

      Common units

200,010

1.6%

      Incentive distribution rights

80.0%

   N/A

            Total Atlas Energy ownership interests in Development Subsidiary

3.6%

LIGHTFOOT CAPITAL PARTNERS, GP LLC:

      Approximate general partner ownership interest

15.9%

      Approximate limited partner ownership interest

12.0%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/atlas-energy-group-llc-reports-operating-and-financial-results-for-the-first-quarter-2015-300078254.html

SOURCE Atlas Energy Group, LLC

Older

Atlas Resource Partners, L.P. Reports Operating And Financial Results For The First Quarter 2015

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