Attached files
file | filename |
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EX-32.1 - EXHIBIT 32.1 - Atlas Resources Public #18-2009 (C) L.P. | c04859exv32w1.htm |
EX-31.2 - EXHIBIT 31.2 - Atlas Resources Public #18-2009 (C) L.P. | c04859exv31w2.htm |
EX-31.1 - EXHIBIT 31.1 - Atlas Resources Public #18-2009 (C) L.P. | c04859exv31w1.htm |
EX-32.2 - EXHIBIT 32.2 - Atlas Resources Public #18-2009 (C) L.P. | c04859exv32w2.htm |
Table of Contents
United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-Q
(Mark One)
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2010
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 333-150925-01
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
(Name of small business issuer in its charter)
Delaware | 27-0213766 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
Westpointe Corporate Center One | ||
1550 Coraopolis Heights Rd. 2nd Floor | ||
Moon Township, PA | 15108 | |
(Address of principal executive offices) | (zip code) |
Issuers telephone number, including area code: (412) 262-2830
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12
months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of large accelerated filer, accelerated filer, non accelerated filer and smaller reporting company in Rule
12b-2 of the Exchange Act (Check one):
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
PAGE | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7-16 | ||||||||
16-19 | ||||||||
19-20 | ||||||||
20 | ||||||||
20 | ||||||||
21 | ||||||||
CERTIFICATIONS |
||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 |
2
Table of Contents
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
BALANCE SHEETS
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 2,946,600 | $ | 26,313,800 | ||||
Accounts receivable affiliate |
9,768,800 | 1,219,300 | ||||||
Short-term hedge receivable due from affiliate |
4,382,200 | 3,639,400 | ||||||
Total current assets |
17,097,600 | 31,172,500 | ||||||
Oil and gas properties, net |
221,383,000 | 70,652,900 | ||||||
Construction in progress |
19,332,000 | 122,532,400 | ||||||
Long-term hedge receivable due from affiliate |
6,055,600 | 3,340,600 | ||||||
$ | 263,868,200 | $ | 227,698,400 | |||||
LIABILITIES AND PARTNERS CAPITAL |
||||||||
Current liabilities: |
||||||||
Accrued liabilities |
$ | 332,500 | $ | 24,900 | ||||
Short-term hedge liability due to affiliate |
72,300 | 45,300 | ||||||
Total current liabilities |
404,800 | 70,200 | ||||||
Asset retirement obligation |
1,273,200 | 1,152,700 | ||||||
Long-term hedge liability due to affiliate |
1,720,100 | 548,700 | ||||||
Partners capital: |
||||||||
Managing general partner |
20,920,800 | 10,510,800 | ||||||
Investor subscription receivable |
| (20,187,700 | ) | |||||
Investor partners (22,928.90 units) |
230,903,900 | 229,217,700 | ||||||
Accumulated other comprehensive income |
8,645,400 | 6,386,000 | ||||||
Total partners capital |
260,470,100 | 225,926,800 | ||||||
$ | 263,868,200 | $ | 227,698,400 | |||||
See accompanying notes to financial statements.
3
Table of Contents
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months | Six Months | |||||||
Ended | Ended | |||||||
June 30, | June 30, | |||||||
2010 | 2010 | |||||||
REVENUES |
||||||||
Natural gas and oil |
$ | 9,734,100 | $ | 15,316,000 | ||||
Interest income |
600 | 600 | ||||||
Total revenues |
9,734,700 | 15,316,600 | ||||||
COSTS AND EXPENSES |
||||||||
Production |
2,523,500 | 4,066,200 | ||||||
Depletion |
4,616,000 | 7,351,100 | ||||||
Accretion of asset retirement obligation |
18,600 | 37,100 | ||||||
General and administrative |
37,100 | 61,800 | ||||||
Total expenses |
7,195,200 | 11,516,200 | ||||||
Net earnings |
$ | 2,539,500 | $ | 3,800,400 | ||||
Allocation of net earnings: |
||||||||
Managing general partner |
$ | 1,430,100 | $ | 2,162,500 | ||||
Limited partners |
$ | 1,109,400 | $ | 1,637,900 | ||||
Net earnings per limited partnership unit |
$ | 48 | $ | 71 | ||||
See accompanying notes to financial statements.
4
Table of Contents
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
STATEMENT OF CHANGES IN PARTNERS CAPITAL
FOR THE SIX MONTHS ENDED
June 30, 2010
(Unaudited)
Accumulated | ||||||||||||||||||||
Managing | Investor | Other | ||||||||||||||||||
General | Investor | Subscription | Comprehensive | |||||||||||||||||
Partner | Partners | Receivable | Income | Total | ||||||||||||||||
Balance at January 1, 2010 |
$ | 10,510,800 | $ | 229,217,700 | $ | (20,187,700 | ) | $ | 6,386,000 | $ | 225,926,800 | |||||||||
Participation in revenues and expenses: |
||||||||||||||||||||
Net production revenues |
2,924,900 | 8,324,900 | | | 11,249,800 | |||||||||||||||
Interest income |
200 | 400 | | | 600 | |||||||||||||||
Depletion |
(736,800 | ) | (6,614,300 | ) | | | (7,351,100 | ) | ||||||||||||
Accretion of asset retirement obligation |
(9,700 | ) | (27,400 | ) | | | (37,100 | ) | ||||||||||||
General and administrative |
(16,100 | ) | (45,700 | ) | | | (61,800 | ) | ||||||||||||
Net earnings |
2,162,500 | 1,637,900 | | | 3,800,400 | |||||||||||||||
Other comprehensive income |
| | | 2,259,400 | 2,259,400 | |||||||||||||||
Asset contributions |
8,295,900 | | | | 8,295,900 | |||||||||||||||
Working interest adjustment |
(48,300 | ) | 48,300 | | | | ||||||||||||||
Initial capital contribution returned |
(100 | ) | | | | (100 | ) | |||||||||||||
Subscription received |
| | 20,187,700 | | 20,187,700 | |||||||||||||||
Balance at June 30, 2010 |
$ | 20,920,800 | $ | 230,903,900 | $ | | $ | 8,645,400 | $ | 260,470,100 | ||||||||||
See accompanying notes to financial statements.
5
Table of Contents
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended | ||||
June 30, | ||||
2010 | ||||
Cash flows from operating activities: |
||||
Net earnings |
$ | 3,800,400 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||
Depletion |
7,351,100 | |||
Accretion of asset retirement obligation |
37,100 | |||
Increase in accounts receivable-affiliate |
(8,549,500 | ) | ||
Increase in accrued liabilities |
307,600 | |||
Net cash provided by operating activities |
2,946,700 | |||
Cash flows from investing activities: |
||||
Oil and gas well drilling contract paid to MGP |
(46,501,500 | ) | ||
Net cash provided by operation activities |
(46,501,500 | ) | ||
Cash flows from financing activities: |
||||
Initial capital contribution by MGP |
(100 | ) | ||
Partners capital contribution |
20,187,700 | |||
Net cash used in financing activities |
20,187,600 | |||
Net decrease in cash and cash equivalents |
(23,367,200 | ) | ||
Cash and cash equivalents at beginning of period |
26,313,800 | |||
Cash and cash equivalents at end of period |
$ | 2,946,600 | ||
Supplemental Schedule of non-cash investing and financing activities: |
||||
Assets contributed by managing general partner: |
||||
Tangible drilling costs |
$ | 7,326,100 | ||
Lease costs |
969,800 | |||
$ | 8,295,900 | |||
Asset retirement obligation |
$ | 83,400 | ||
See accompanying notes to financial statements.
6
Table of Contents
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
(Unaudited)
NOTE 1 BASIS OF PRESENTATION
Atlas Resources Public 18-2009 (C) L.P. (the Partnership) is a Delaware Limited Partnership
which operates gas wells located primarily in Pennsylvania, Tennessee, Michigan, and Indiana. The
Partnership includes Atlas Resources, LLC of Pittsburgh, Pennsylvania, as Managing General Partner
(MGP) and Operator, and 4,903 Limited Partners or Investor General Partners. The Partnership
began operations in September of 2009. The MGP is a wholly-owned subsidiary of Atlas Energy
Resources, LLC (ATN), an independent developer, and producer of natural gas and oil, with
operations in the Appalachian, Michigan and Illinois Basin. ATN is a wholly-owned subsidiary of
Atlas Energy, Inc. (NASDAQ: ATLS).
The accompanying financial statements, which are unaudited except that the balance sheet at
December 31, 2009 is derived from audited financial statements, are presented in accordance with
the requirements of Form 10-Q and accounting principles generally accepted in the United States of
America for interim reporting. They do not include all disclosures normally made in financial
statements contained in Form 10-K. In managements opinion, all adjustments necessary for a fair
presentation of the Partnerships financial position, results of operations and cash flows for the
periods disclosed have been made. Management has considered for disclosure any material subsequent
events through the date the financial statements were issued. These interim financial statements
should be read in conjunction with the audited financial statements and notes thereto presented in
the Partnerships Annual Report on Form 10-K for the year ended December 31, 2009. The results of
operations for the three and six month periods ended June 30, 2010 may not necessarily be
indicative of the results of operations for the full year ending December 31, 2010.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of the Partnerships financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities that exist at the date of the Partnerships financial statements,
as well as the reported amounts of revenue and costs and expenses during the reporting periods. The
Partnerships financial statements are based on a number of significant estimates, including the
revenue and expense accruals, depletion, asset impairments, fair value of derivative instruments,
and the probability of forecasted transactions. Actual results could differ from those estimates.
The natural gas industry principally conducts its business by processing actual transactions
as much as 60 days after the month of delivery. Consequently, the most recent two months financial
results were recorded using estimated volumes and contract market prices. Differences between
estimated and actual amounts are recorded in the following months financial results. Management
believes that the operating results presented for the three and six months ended June 30, 2010
represent actual results in all material respects (see Revenue Recognition accounting policy for
further description).
Fair Value of Financial Instruments
The carrying amounts of the Partnerships cash and receivables approximate fair values because
of the short maturities of these instruments.
7
Table of Contents
ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Oil and Gas Properties
Oil and gas properties are stated at cost. Maintenance and repairs are expensed as incurred.
Major renewals and improvements that extend the useful lives of property are capitalized. The
Partnership follows the successful efforts method of accounting for oil and gas producing
activities. Oil is converted to gas equivalent basis (Mcfe) at the rate of one barrel equals 6
Mcf.
The Partnerships depletion expense is determined on a field-by-field basis using the
units-of-production method. Depletion rates for lease, well, and related equipment costs are based
on proved developed reserves associated with each field. Depletion rates are determined based on
reserve quantity estimates and the capitalized costs of developed producing properties. Upon the
sale or retirement of a complete field of a proved property, the Partnership eliminates the cost
from the property accounts, and the resultant gain or loss is reclassified to the Partnerships
statements of operations. Upon the sale of an individual well, the Partnership credits the proceeds
to accumulated depreciation and depletion within its balance sheets.
Construction in progress (CIP) of oil and gas properties at December 31, 2009 was
$122,532,400. For the six months ended June 30, 2010 CIP decreased by $103,200,400 and these costs
are included in oil and gas properties as of June 30, 2010. The remaining balance in CIP of
$19,332,000 is expected to be completed in 2010.
Impairment of Long-Lived Assets
The Partnership reviews its long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. If it is
determined that an assets estimated future cash flows will not be sufficient to recover its
carrying amount, an impairment charge will be recorded to reduce the carrying amount for that asset
to its estimated fair value if such carrying amount exceeds the fair value.
The review of the Partnerships oil and gas properties is done on a field-by-field basis by
determining if the historical cost of proved properties less the applicable accumulated depletion,
depreciation and amortization and abandonment is less than the estimated expected undiscounted
future cash flows. The expected future cash flows are estimated based on the Partnerships plans
to continue to produce proved reserves. Expected future cash flow from the sale of production of
reserves is calculated based on estimated future prices. The Partnership estimates prices based
upon current contracts in place, adjusted for basis differentials and market related information
including published futures prices. The estimated future level of production is based on
assumptions surrounding future prices and costs, field decline rates, market demand and supply and
the economic and regulatory climates. If the carrying value exceeds the expected future cash
flows, an impairment loss is recognized for the difference between the estimated fair market value
(as determined by discounted future cash flows) and the carrying value of the assets.
The determination of oil and natural gas reserve estimates is a subjective process, and the
accuracy of any reserve estimate depends on the quality of available data and the application of
engineering and geological interpretation and judgment. Estimates of economically recoverable
reserves and future net cash flows depend on a number of variable factors and assumptions that are
difficult to predict and may vary considerably from actual results.
There were no impairments of proved oil and gas properties recorded by the Partnership for
the three and six months ended June 30, 2010 and 2009 and for the year ended December 31, 2009.
8
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Working Interest
The Partnership agreement establishes that revenues and expenses will be allocated to the MGP
and limited partners based on their ratio of capital contributions to total contributions, (the
working interest). The MGP is also provided an additional working interest of 10% as provided in
the Partnership Agreement. Due to the time necessary to complete drilling operations and accumulate
all drilling costs, estimated working interest percentage ownership rates are utilized to allocate
revenues and expenses until the wells are completely drilled and turned on-line into production.
Once the wells are completed, the final working interest ownership of the partners is determined,
and any previously allocated revenues and expenses based on the estimated working interest
percentage ownership are adjusted to conform to the final working interest percentage ownership.
Revenue Recognition
The Partnership generally sells natural gas and crude oil at prevailing market prices. Revenue
is recognized when produced quantities are delivered to a custody transfer point, persuasive
evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the
purchaser upon delivery, collection of revenue from the sale is reasonably assured and the sales
price is fixed or determinable. Revenues from the production of natural gas and crude oil in which
the Partnership has an interest with other producers are recognized on the basis of the
Partnerships percentage ownership of working interest. Generally, the Partnerships sales
contracts are based on pricing provisions that are tied to a market index, with certain adjustments
based on proximity to gathering and transmission lines and the quality of its natural gas.
The Partnership accrues unbilled revenue due to timing differences between the delivery of
natural gas, and crude oil and the receipt of a delivery statement. These revenues are recorded
based upon volumetric data from the Partnerships records and management estimates of the related
commodity sales and transportation fees which are, in turn, based upon applicable product prices
(see Use of Estimates accounting policy for further description). The Partnership had unbilled
revenues at June 30, 2010 and December 31, 2009 of $6,424,600 and $1,249,200, respectively, which
are included in accounts receivable affiliate within the Partnerships balance sheets.
9
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Comprehensive Income
Comprehensive income includes net earnings and all other changes in the equity of a business
during a period from transactions and other events and circumstances from non-owner sources that,
under accounting principles generally accepted in the United States of America, have not been
recognized in the calculation of net earnings. These changes, other than net earnings, are referred
to as other comprehensive income (loss) and for the Partnership includes changes in the fair
value of unsettled derivative contracts accounted for as cash flow hedges. The following table sets
forth the calculation of the Partnerships comprehensive income:
Three Months | Six Months | |||||||
Ended | Ended | |||||||
June 30, | June 30, | |||||||
2010 | 2010 | |||||||
Net earnings |
$ | 2,539,500 | $ | 3,800,400 | ||||
Other comprehensive income (loss): |
||||||||
Unrealized holding gain on hedging contracts |
69,400 | 4,742,100 | ||||||
Less: reclassification adjustment for gains
realized in net earnings |
(2,112,800 | ) | (2,482,700 | ) | ||||
Total other comprehensive income (loss) |
(2,043,400 | ) | 2,259,400 | |||||
Comprehensive income |
$ | 496,100 | $ | 6,059,800 | ||||
Recently Adopted Accounting Standards
In April 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards
Update 2010-14, Accounting for Extractive Industries Oil & Gas: Amendments to Paragraph
932-10-S99-1 (Update 2010-14). Update 2010-14 provides amendments to add the SECs Regulation
S-X Rule 4-10, Financial Accounting and Reporting for Oil and Gas Producing Activities Pursuant to
the Federal Securities Laws and the Energy Policy and Conservation Act of 1975 (S-X Rule 4-10)
to Accounting Standards Codification (ASC) Topic 932 Extractive Activities Oil and Gas. S-X
Rule 4-10 was included in the SECs Final Rule, Modernization of Oil, and Gas Reporting, which
became effective January 1, 2010. As Update 2010-14 only served to align the FASBs ASC Topic 932
with the SECs S-X Rule 4-10, the Partnerships adoption did not have a material impact on its
financial position, results of operations or related disclosures.
In February 2010, the FASB issued Accounting Standards Update 2010-09, Subsequent Events
(Topic 855): Amendments to Certain Recognition and Disclosure Requirements (Update 2010-09).
Update 2010-09 removes the requirement for an SEC filer to disclose a date through which subsequent
events have been evaluated in both issued and revised financial statements. Revised financial
statements include financial statements revised as a result of either correction of an error or
retrospective application of U.S. generally accepted accounting standards. The requirements of
Update 2010-09 were effective upon its issuance, February 24, 2010. The Partnership applied the
requirements of Update 2010-09 upon its adoption and it did not have an impact on its financial
position, results of operations or related disclosures.
In January 2010, the FASB issued Accounting Standards Update 2010-02, Fair Value Measurement
and Disclosures (Topic (820) Improving Disclosures about Fair Value Measurement (Update
2010-06). Update 2010-06 clarifies and requires new disclosures about the transfer of amounts
between Level 1 and Level 2, as well as significant transfers in and out of Level 3. In addition,
for Level 2 and Level 3 measurements, Update 2010-06 requires additional disclosure about the
valuation technique used or any changes in technique. Update 2010-06 also clarifies that entities
must disclose fair value measurements by classes of assets and liabilities, based on the nature and
risks of the assets and liabilities. The requirements of Update 2010-06 are effective at the start
of a reporting entitys first fiscal year beginning after December 15, 2009 (January 1, 2010 for
the Partnership). The Partnership applied the requirements of Update 2010-06 upon its adoption on
January 1, 2010, and it did not have a material impact on its financial position, results of
operations or related disclosures.
10
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recently Issued Accounting Standards
In March 2010, the FASB issued Accounting Standards Update 2010-11, Derivatives and Hedging
(Topic 815): Scope Exception Related to Embedded Credit Derivatives (Update 2010-11). Update
2010-11 provides clarification with regard to the type of embedded credit derivative that is exempt
from embedded derivative bifurcation requirements. Specifically, only one form of embedded credit
derivative qualifies for the exemption one that is related only to the subordination of one
financial instrument to another. As a result, entities that have contracts containing an embedded
credit derivative feature in a form other than such subordination may need to separately account
for the embedded credit derivative feature. The requirements of Update 2010-11 are effective at the
start of a reporting entitys first fiscal year beginning after June 15, 2010 (July 1, 2010 for the
Partnership). The Partnership will apply the requirements of Update 2010-11 upon its adoption on
July 1, 2010 and does not expect it to have a material impact on its financial position, results of
operations or related disclosures.
NOTE 3 OIL AND GAS PROPERTIES
The following is a summary of oil and gas properties:
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
Natural gas and oil properties: |
||||||||
Proved properties: |
||||||||
Leasehold interests |
$ | 3,217,800 | $ | 2,248,000 | ||||
Wells and related equipment |
226,228,200 | 69,116,800 | ||||||
229,446,000 | 71,364,800 | |||||||
Accumulated depletion |
(8,063,000 | ) | (711,900 | ) | ||||
$ | 221,383,000 | $ | 70,652,900 | |||||
NOTE 4 ASSET RETIREMENT OBLIGATIONS
The Partnership recognizes an estimated liability for the plugging and abandonment of its oil
and gas wells and related facilities. It also recognizes a liability for future asset retirement
obligations if a reasonable estimate of the fair value of that liability can be made. The
associated asset retirement costs are capitalized as part of the carrying amount of the long-lived
asset. The Partnership also considers the estimated salvage value in the calculation of depletion.
The estimated liability is based on the MGPs historical experience in plugging and abandoning
wells, estimated remaining lives of those wells based on reserve estimates, external estimates as
to the cost to plug and abandon the wells in the future and federal and state regulatory
requirements. The liability is discounted using an assumed credit-adjusted risk-free interest rate.
Revisions to the liability could occur due to changes in estimates of plugging and abandonment
costs or remaining lives of the wells, or if federal or state regulators enact new plugging and
abandonment requirements. The Partnership has no assets legally restricted for purposes of settling
asset retirement obligations. Except for its oil and gas properties, the Partnership has determined
that there are no other material retirement obligations associated with tangible long-lived assets.
11
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 4 ASSET RETIREMENT OBLIGATIONS (Continued)
A reconciliation of the Partnerships liability for plugging and abandonment costs for the
periods indicated is as follows:
Three Months | Six Months | |||||||
Ended | Ended | |||||||
June 30, | June 30, | |||||||
2010 | 2010 | |||||||
Asset retirement obligation at beginning of period |
$ | 1,254,600 | $ | 1,152,700 | ||||
Liabilities incurred from drilling wells |
| 83,400 | ||||||
Accretion expense |
18,600 | 37,100 | ||||||
Asset retirement obligation at end of period |
$ | 1,273,200 | $ | 1,273,200 | ||||
NOTE 5 DERIVATIVE INSTRUMENTS
The MGP on behalf of the Partnership uses a number of different derivative instruments,
principally swaps, collars, and options, in connection with its commodity price risk management
activities. The MGP enters into financial instruments to hedge its forecasted natural gas and crude
oil sales against the variability in expected future cash flows attributable to changes in market
prices. Swap instruments are contractual agreements between counterparties to exchange obligations
of money as the underlying natural gas and crude oil is sold. Under swap agreements, the MGP
receives or pays a fixed price and receives or remits a floating price based on certain indices for
the relevant contract period. Commodity-based option instruments are contractual agreements that
grant the right, but not obligation, to purchase or sell natural gas and crude oil at a fixed price
for the relevant contract period.
The MGP formally documents all relationships between hedging instruments and the items being
hedged, including its risk management objective and strategy for undertaking the hedging
transactions. This includes matching the commodity derivative contracts to the forecasted
transactions. The MGP assesses, both at the inception of the derivative and on an ongoing basis,
whether the derivative is effective in offsetting changes in the forecasted cash flow of the hedged
item. If it is determined that a derivative is not effective as a hedge or that it has ceased to be
an effective hedge due to the loss of adequate correlation between the hedging instrument and the
underlying item being hedged, the MGP will discontinue hedge accounting for the derivative and
subsequent changes in the derivative fair value, which is determined by the MGP through the
utilization of market data, will be recognized immediately within gain (loss) on mark-to-market
derivatives in the Partnerships statements of operations. For derivatives qualifying as hedges,
the Partnership recognizes the effective portion of changes in fair value in partners capital as
accumulated other comprehensive income and reclassifies the portion relating to commodity
derivatives to gas and oil production revenues for the Partnerships derivatives within the
Partnerships statements of operations as the underlying transactions are settled. For
non-qualifying derivatives and for the ineffective portion of qualifying derivatives, the
Partnership recognizes changes in fair value within gain (loss) on mark-to-market derivatives in
its statements of operations as they occur.
Derivatives are recorded on the Partnerships balance sheet as assets or liabilities at fair
value. The Partnership reflected net derivative assets on its balance sheets of $8,645,400 at June
30, 2010. Of the $8,645,400 net gain in accumulated other comprehensive income at June 30, 2010, if
the fair values of the instruments remain at current market values, the Partnership will reclassify
$4,309,900 of gains to the Partnerships statements of operations over the next twelve month period
as these contracts expire. Aggregate gains of $4,335,500 will be reclassified to the Partnerships
statements of operations in later periods as these remaining contracts expire. Actual amounts that
will be reclassified will vary as a result of future price changes.
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 5 DERIVATIVE INSTRUMENTS (Continued)
The following table summarizes the fair value of the Partnerships derivative instruments as
of June 30, 2010 and December 31, 2009, as well as the gain or loss recognized in the statements of
operations for effective derivative instruments for the three and six months ended June 30, 2010:
Fair Value of Derivative Instruments:
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Derivatives in | Fair Value | Fair Value | ||||||||||||||||||
Cash Flow | Balance Sheet | June 30, | December 31, | Balance Sheet | June 30, | December 31, | ||||||||||||||
Hedging Relationships | Location | 2010 | 2009 | Location | 2010 | 2009 | ||||||||||||||
Commodity contracts: |
Current assets | $ | 4,382,200 | $ | 3,639,400 | Current liabilities | $ | (72,300 | ) | $ | (45,300 | ) | ||||||||
Long-term assets | 6,055,600 | 3,340,600 | Long-term liabilities | (1,720,100 | ) | (548,700 | ) | |||||||||||||
Total derivatives |
$ | 10,437,800 | $ | 6,980,000 | $ | (1,792,400 | ) | $ | (594,000 | ) | ||||||||||
Effects of Derivative Instruments on Statements of Operations:
Gain | Gain | |||||||||
Recognized in OCI | Reclassified from OCI into | |||||||||
on Derivative | Location of Gain | Income | ||||||||
(Effective Portion) | Reclassified from | (Effective Portion) | ||||||||
Derivatives in | Three Months Ended | Accumulated | Three Months Ended | |||||||
Cash Flow | June 30, | OCI into Income | June 30, | |||||||
Hedging Relationships | 2010 | (Effective Portion) | 2010 | |||||||
Commodity contracts: |
$ | 69,400 | Natural gas and oil revenue | $ | 2,112,800 | |||||
Gain | Gain | |||||||||
Recognized in OCI | Reclassified from OCI into | |||||||||
on Derivative | Location of Gain | Income | ||||||||
(Effective Portion) | Reclassified from | (Effective Portion) | ||||||||
Derivatives in | Six Months Ended | Accumulated | Six Months Ended | |||||||
Cash Flow | June 30, | OCI into Income | June 30, | |||||||
Hedging Relationships | 2010 | (Effective Portion) | 2010 | |||||||
Commodity contracts: |
$ | 4,742,100 | Natural gas and oil revenue | $ | 2,482,700 | |||||
The MGP enters into natural gas and crude oil future option contracts and collar contracts to
achieve more predictable cash flows by hedging its exposure to changes in natural gas and oil
prices. At any point in time, such contracts may include regulated New York Mercantile Exchange
(NYMEX) futures and options contracts and non-regulated over-the-counter futures contracts with
qualified counterparties. NYMEX contracts are generally settled with offsetting positions, but may
be settled by the delivery of natural gas. Crude oil contracts are based on a West Texas
Intermediate (WTI) index. These contracts have qualified and been designated as cash flow hedges
and recorded at their fair values.
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 5 DERIVATIVE INSTRUMENTS (Continued)
Natural Gas Fixed Price Swaps
Production | Average | |||||||||||
Period Ending | Volumes | Fixed Price | Fair Value | |||||||||
December 31, | (MMbtu) (1) | (per MMbtu) (1) | Asset (2) | |||||||||
2010 |
1,004,600 | $ | 7.245 | $ | 2,452,000 | |||||||
2011 |
1,303,500 | 6.850 | 2,012,200 | |||||||||
2012 |
1,055,600 | 7.165 | 1,537,100 | |||||||||
2013 |
684,400 | 7.022 | 763,700 | |||||||||
2014 |
| | | |||||||||
$ | 6,765,000 | |||||||||||
Natural Gas Costless Collars
Production | Average | |||||||||||||
Period Ending | Option | Volumes | Floor & Cap | Fair Value | ||||||||||
December 31, | Type | (MMbtu) (1) | (per MMbtu) (1) | Asset (Liability) (2) | ||||||||||
2010 |
Puts purchased | 127,200 | $ | 6.170 | $ | 237,300 | ||||||||
2010 |
Calls sold | 127,200 | 7.373 | (16,100 | ) | |||||||||
2011 |
Puts purchased | 696,500 | 6.443 | 1,135,900 | ||||||||||
2011 |
Calls sold | 696,500 | 7.554 | (199,800 | ) | |||||||||
2012 |
Puts purchased | 550,600 | 6.024 | 832,000 | ||||||||||
2012 |
Calls sold | 550,600 | 7.192 | (448,700 | ) | |||||||||
2013 |
Puts purchased | 633,400 | 6.020 | 1,073,400 | ||||||||||
2013 |
Calls sold | 633,400 | 7.183 | (758,800 | ) | |||||||||
2014 |
Puts purchased | 229,300 | 5.862 | 385,900 | ||||||||||
2014 |
Calls sold | 229,300 | 6.963 | (360,700 | ) | |||||||||
$ | 1,880,400 | |||||||||||||
Total Net Asset | $ | 8,645,400 | ||||||||||||
(1) | MMBTU represents million British Thermal Units. Bbl represents barrels. |
|
(2) | Fair value based on forward NYMEX natural gas prices, as applicable. |
|
(3) | Fair value based on forward WTI crude oil prices, as applicable. |
NOTE 6 FAIR VALUE OF FINANCIAL INSTRUMENTS
The Partnership has established a hierarchy to measure its financial instruments at fair value
which requires it to maximize the use of observable inputs and minimize the use of unobservable
inputs when measuring fair value. The hierarchy defines three levels of inputs that may be used to
measure fair value:
Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets and
liabilities that the reporting entity has the ability to access at the measurement date.
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 6 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the
asset and liability or can be corroborated with observable market data for substantially the
entire contractual term of the asset or liability.
Level 3 Unobservable inputs that reflect the entitys own assumptions about the assumption
market participants would use in the pricing of the asset or liability and are consequently
not based on market activity but rather through particular valuation techniques.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The Partnership uses a fair value methodology to value the assets and liabilities for its
outstanding derivative contracts (see Note 5). The Partnerships commodity derivative contracts are
valued based on observable market data related to the change in price of the underlying commodity
and are therefore defined as Level 2 fair value measurements.
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
The Partnership estimates the fair value of asset retirement obligations using Level 3 inputs
based on discounted cash flow projections using numerous estimates, assumptions and judgments
regarding such factors at the date of establishment of an asset retirement obligation such as:
amounts and timing of settlements; the credit-adjusted risk-free rate of the Partnership; and
estimated inflation rates (see Note 4).
NOTE 7 CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
The Partnership has entered into the following significant transactions with its MGP and its
affiliates as provided under its Partnership Agreement:
| Drilling contracts to drill and complete wells for the Partnership are charged at
cost plus 18%. The cost of the wells includes reimbursement to the Partnerships MGP of
its general and administrative overhead cost. The Partnership paid $46,501,500 to its
MGP for the six months ended June, 30, 2010. |
| The Partnerships MGP contributed undeveloped leases necessary to cover each of the
Partnerships prospects and at June 30, 2010 received a credit to its capital account in
the Partnership of $969,800. |
| Administrative costs which are included in general and administrative expenses in the
Partnerships statements of operations are payable at $75 per well per month.
Administrative costs incurred for the three months and six months ended June 30, 2010
were $16,000 and $27,500, respectively. |
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
NOTE 7 CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (continued)
| Monthly well supervision fees which are included in production expenses in the
Partnerships statements of operations are payable at $975 per well, per month for
Marcellus wells, $1,500 per well, per month for New Albany and Indiana Wells, and $600
per well, per month for horizontal Antrim Shale wells. For all other wells a fee of $392
is charged per well, per month, for operating and maintaining the wells. Well
supervision fees incurred for the three months and six months ended June 30, 2010 were
$227,400 and $359,600, respectively. |
| Transportation fees which are included in production expenses in the Partnerships
statements of operations are generally payable at 13% of the natural gas sales price.
Transportation fees incurred for the three months and six months ended June 30, 2010
were $1,015,800 and $1,647,700, respectively. |
| Assets contributed from the MGP which are disclosed on the Partnerships statement of
cash flows as a non-cash activity for the six months ended June 30, 2010 were
$8,295,900. |
The MGP and its affiliates perform all administrative and management functions for the
Partnership including billing revenues and paying expenses. Accounts receivable-affiliate on the
Partnerships balance sheets represents the net production revenues due from the MGP.
Subordination by Managing General Partner
Under the terms of the Partnership agreement, the MGP may be required to subordinate up to 50%
of its share of production revenues of the Partnership to the benefit of the limited partners for
an amount equal to at least 10% of their net subscriptions, determined on a cumulative basis, in
each of the first five years of Partnership operations, commencing with the first distribution to
the investor partners and expiring 60 months from that date.
NOTE 8 COMMITMENTS AND CONTINGENCIES
Legal Proceedings
The Managing General Partner is not aware of any legal proceedings filed against the
Partnership.
The Partnerships MGP is a party to various routine legal proceedings arising out of the
ordinary course of its business. Management believes that none of these actions, individually or in
the aggregate, will have a material adverse effect on the Partnerships financial condition or
results of operations.
ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (UNAUDITED) |
Forward-Looking Statements
When used in this Form 10-Q, the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. There are risks and uncertainties
that could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
16
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BUSINESS OVERVIEW
We are a Delaware Limited Partnership which operates gas wells located primarily in
Pennsylvania, Tennessee, Michigan, and Indiana. Our Partnership includes Atlas Resources, LLC of
Pittsburgh, Pennsylvania, as Managing General Partner (MGP) and operator, and 4,903 subscribers
to units as Limited Partners or Investor General Partners. We began operations in September of
2009. The MGP is a wholly-owned subsidiary of Atlas Energy Resources, LLC (ATN), an independent
developer, and producer of natural gas and oil, with operations in the Appalachian, Michigan and
Illinois Basin. ATN is a wholly-owned subsidiary of Atlas Energy, Inc, (NASDAQ: ATLS).
Our wells are currently producing natural gas and to a lesser extent, oil which are our only
products. Most of our gas is gathered and delivered to market through Laurel Mountain Midstream,
LLCs gas gathering system, a joint venture between Atlas Energys affiliate, Atlas Pipeline
Partners, L.P. (NYSE: APL) and The Williams Companies, Inc. (NYSE: WMB). We do not plan to sell
any of our wells and will continue to produce them until they are depleted or become uneconomical
to produce, at which time they will be plugged and abandoned or sold.
Results of Operations
Partnership operations began in September 2009. The Partnerships first wells were turned
on-line in October 2009, therefore no comparative data is available for the three and six months
ended June 30, 2010. The following table sets forth information relating to our production
revenues, volumes, sales prices, production costs and depletion during the periods indicated:
Three Months | Six Months | |||||||
Ended | Ended | |||||||
June 30, | June 30, | |||||||
2010 | 2010 | |||||||
Production revenues (in thousands): |
||||||||
Gas |
$ | 9,730 | $ | 15,312 | ||||
Oil |
3 | 3 | ||||||
Liquid |
1 | 1 | ||||||
Total |
$ | 9,734 | $ | 15,316 | ||||
Production volumes: |
||||||||
Gas (mcf/day) (1) |
16,732 | 13,215 | ||||||
Oil (bbls/day) (1) (3) |
| | ||||||
Liquid (bbl/day) (1) |
1 | | ||||||
Total (mcfe/day) (1) |
16,738 | 13,215 | ||||||
Average sales prices: (2) |
||||||||
Gas (per mcf) (1) |
$ | 6.39 | $ | 6.40 | ||||
Oil (per bbl) (1) |
$ | 57.42 | $ | 57.42 | ||||
Liquid (per bbl) (1) |
$ | 17.55 | $ | 17.55 | ||||
Average production costs: |
||||||||
As a percent of revenues |
26 | % | 27 | % | ||||
Per mcfe (1) |
$ | 1.66 | $ | 1.70 | ||||
Depletion per mcfe |
$ | 3.03 | $ | 3.07 |
(1) | Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl. Liquid gallons are converted into bbls by a ratio of 42 gallons
per bbl. |
|
(2) | Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges. |
|
(3) | Oil barrels per day are less than 1 bbl. |
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Table of Contents
Natural Gas Revenues. Our natural gas revenues were $9,730,300 and $15,312,200 for the three
months and six months ended June 30, 2010, respectively. We expect that our natural gas revenues
will increase over the next year as more of our wells are put online and are producing larger
volumes of natural gas.
Oil Revenues. We drill wells primarily to produce natural gas, rather than oil, but some wells
have limited oil production. Our oil revenues were $2,600 for the three months and six months ended
June 30, 2010.
Natural Gas Liquids Revenue. The majority of our wells produce dry gas, which is composed
primarily of methane and requires no additional processing before being transported and sold to the
purchaser. Some wells, however, produce wet gas, which contains larger amounts of ethane and
other associated hydrocarbons (i.e. natural gas liquids) that must be removed prior to
transporting the gas. Once removed, these natural gas liquids are sold to various purchasers. Our
natural gas liquids revenues were $1,200 for the three months and six months ended June 30, 2010.
Expenses. Production expenses were $2,523,500 and $4,066,200 for the three months and six
months ended June 30, 2010, respectively.
Depletion of oil and gas properties as a percentage of oil and gas revenues were 47% and 48%
for the three months and six months ended June 30, 2010, respectively.
General and administrative expenses were $37,100 and $61,800 for the three months and six
months ended June 30, 2010, respectively. These expenses include third-party costs, audit, tax and
other outside services as well as the monthly administrative fees charged by our MGP, and vary from
year to year due to the timing and billing of the costs and services provided to us.
Liquidity and Capital Resources
Cash provided by operating activities was $2,946,700 for the six months ended June 30, 2010.
This was due to net earnings before depletion and accretion of $11,188,600, partially offset by the
change in accounts receivable-affiliate that decreased operating cash flows by $8,549,500.
Cash used in investing activities was $46,501,500 during the six months ended June 30, 2010.
This consisted of oil and gas well drilling contracts paid to the MGP.
Cash provided by financing activities was $20,187,600 during the six months ended June 30,
2010. These were funds contributed by the investor partners.
We believe that our future cash flows from operations and amounts available from borrowings
from our MGP or its affiliates, if any, will be adequate to fund our operations.
Subordination by Managing General Partner
Under the terms of the Partnership agreement, the MGP may be required to subordinate up to 50%
of its share of production revenues of the Partnership to the benefit of the limited partners for
an amount equal to at least 10% of their net subscriptions, determined on a cumulative basis, in
each of the first five years of Partnership operations, commencing with the first distribution to
the investor partners and expiring 60 months from that date.
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Table of Contents
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires making estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of actual revenue and expenses during
the reporting period. Although we base our estimates on historical experience and various other
assumptions that we believe to be reasonable under the circumstances, actual results may differ
from the estimates on which our financial statements are prepared at any given point of time.
Changes in these estimates could materially affect our financial position, results of operations or
cash flows. Significant items that are subject to such estimates and assumptions include revenue
and expense accruals, depletion, asset impairment, fair value of derivative instruments, and the
probability of forecasted transactions. A discussion of our significant accounting policies we have
adopted and followed in the preparation of our financial statements is included within our Annual
Report on Form 10-K for the year ended December 31, 2009 and in Note 2 under Item 1, Financial
Statements included in this report, and there have been no material changes to these policies
through June 30, 2010.
Fair Value of Financial Instruments
We have established a hierarchy to measure our financial instruments at fair value which
requires us to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. The hierarchy defines three levels of inputs that may be used to measure
fair value:
Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets and
liabilities that the reporting entity has the ability to access at the measurement date.
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the
asset and liability or can be corroborated with observable market data for substantially the
entire contractual term of the asset or liability.
Level 3 Unobservable inputs that reflect the entitys own assumptions about the assumption
market participants would use in the pricing of the asset or liability and are consequently
not based on market activity but rather through particular valuation techniques.
We use a fair value methodology to value the assets and liabilities for our outstanding
derivative contracts. Our commodity hedges are calculated based on observable market data related
to the change in price of the underlying commodity and are therefore defined as Level 2 fair value
measurements.
Liabilities that are required to be measured at fair value on a nonrecurring basis include our
asset retirement obligations (AROs) that are defined as Level 3. Estimates of the fair value of
AROs are based on discounted cash flows using numerous estimates, assumptions, and judgments
regarding the cost, timing of settlement, our credit-adjusted risk-free rate and inflation rates.
ITEM 4. CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures that are designed to ensure that information
required to be disclosed in our Securities Exchange Act of 1934 reports is recorded, processed,
summarized and reported within the time periods specified in the SECs rules and forms, and that
such information is accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure. In designing and evaluating the disclosure controls and procedures, our management
recognized that any controls and procedures, no matter how well designed and operated, can provide
only reasonable assurance of achieving the desired control objectives, and our management
necessarily was required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.
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Table of Contents
Under the supervision and with the participation of our management, including our Chief
Executive Officer and Chief Financial Officer, we have carried out an evaluation of the
effectiveness of our disclosure controls and procedures as of the end of the period covered by this
report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer
concluded that, as of June 30, 2010, our disclosure controls, and procedures were effective at the
reasonable assurance level.
There have been no changes in our internal control over financial reporting during our most
recent fiscal quarter that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Managing General Partner is not aware of any legal proceedings filed against the
Partnership.
Affiliates of the MGP and their subsidiaries are party to various routine legal proceedings
arising in the ordinary course of their collective business. The MGP management believes that none
of these actions, individually or in the aggregate, will have a material adverse effect on the
MGPs financial condition or results of operation.
ITEM 6. EXHIBITS
EXHIBIT INDEX
Exhibit No. | Description | |||
4.0 | Amended and Restated Certificate and Agreement of Limited Partnership for Public 18-2009 (C) L.P. (1) |
|||
10.1 | Drilling and Operating Agreement for Atlas America Public 18-2009 (C) L.P. (1) |
|||
31.1 | Rule 13a-14(a)/15d-14(a) Certification. |
|||
31.2 | Rule 13a-14(a)/15d-14(a) Certification. |
|||
32.1 | Section 1350 Certification. |
|||
32.2 | Section 1350 Certification. |
(1) | Filed on October 15, 2008 in the Form S-1A Registration Statement dated October 15, 2008, File No. 333-150925-01 |
20
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SIGNATURES
Pursuant to the requirements of the Securities of the
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Atlas Resources Public 18-2009 (C) L.P. | ||||||
Atlas Resources, LLC, Managing General Partner | ||||||
Date: August 16, 2010
|
By: | /s/ FREDDIE M. KOTEK
|
||||
Chairman of the Board of Directors, | ||||||
Chief Executive Officer and President | ||||||
Date: August 16, 2010
|
By: | /s/ MATTHEW A. JONES
|
||||
Chief Financial Officer |
21