Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Targa Energy LP | d582627d8k.htm |
Exhibit 99.1
NEWS RELEASE
| CONTACT: | Brian J. Begley | |
| Vice President - Investor Relations | ||
| Atlas Energy, L.P. | ||
| (877) 280-2857 | ||
| (215) 405-2718 (fax) |
ATLAS ENERGY, L.P. REPORTS OPERATING AND FINANCIAL RESULTS
FOR THE SECOND QUARTER 2013
| • | Atlas Energy (ATLS) increases its quarterly distribution to $0.44 for the second quarter 2013, a 42% increase from the first quarter 2013 distribution |
| • | Atlas Energy’s subsidiaries, Atlas Resource Partners and Atlas Pipeline Partners, recently closed on over $1.7 billion of acquisitions, providing the foundation for further cash flow growth at both enterprises |
Philadelphia, PA – August 8, 2013 - Atlas Energy, L.P. (NYSE: ATLS) (“Atlas Energy” or “ATLS”) today reported operating and financial results for the second quarter 2013.
Edward E. Cohen, Chief Executive Officer of Atlas Energy, stated, “Our results and substantial distribution increase this quarter reflect the strong performance of both our subsidiaries, ARP and APL. Happily, both businesses are fully integrating their recent accretive acquisitions, positioning them well for significant future returns to their stakeholders, as well as for ATLS.”
| • | ATLS declared a cash distribution of $0.44 per limited partner unit for the second quarter 2013, which represents a $0.13 per unit, or 42%, increase over the first quarter 2013, and a 76% increase over the prior year second quarter. The second quarter 2013 ATLS distribution will be paid on August 19, 2013 to holders of record as of August 6, 2013. ATLS confirms its distribution guidance of $1.70 to $2.00 per unit for full year 2013, as well as distribution guidance of $2.50 to $2.80 per unit for full year 2014. |
| • | Atlas Energy completed its previously announced acquisition of approximately 45 billion cubic feet (“Bcf”) of natural gas proved reserves in the Arkoma Basin in southeastern Oklahoma from EP Energy E&P Company, L.P (“EP Energy”) for $64.5 million net of purchase price adjustments. In addition, ATLS’ E&P subsidiary, Atlas Resource Partners, L.P. (NYSE: ARP), completed its acquisition of natural gas assets from EP Energy for $706 million net of purchase price adjustments. In conjunction with the closing ARP’s transaction with EP Energy, ATLS purchased approximately 3.75 million Class C convertible preferred units from ARP for approximately $87 million. |
| • | Atlas Pipeline Partners, L.P. (NYSE: APL), Atlas Energy’s midstream subsidiary, reported record processing volumes of over 1.25 Bcf per day and NGL production of over 118,000 barrels per day (“bpd”) for the second quarter 2013. The increase in processed volumes was primarily due to the addition of gathering and processing assets in the Eagle Ford Shale in south Texas through APL’s acquisition of TEAK Midstream in April 2013 for $1 billion, subject to customary purchase price adjustments. |
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1
Financial Results
| • | On July 25, 2013, ARP increased its quarterly cash distribution to $0.54 per unit for the second quarter 2013, a 6% increase from ARP’s first quarter 2013 distribution. ATLS will receive approximately $13.2 million of cash distributions based upon ARP’s second quarter 2013 distribution. |
| • | On July 24, 2013, APL declared an increased distribution for the second quarter 2013 of $0.62 per unit, a 5% increase from APL’s first quarter 2013 distribution. ATLS will receive approximately $9.4 million of cash distributions based upon APL’s second quarter 2013 distribution. |
| • | On a GAAP basis, net loss attributable to limited partners was $5.2 million for the second quarter 2013 compared with net income of $51.6 million for the prior year comparable period. The difference in net income between current and prior year periods was due primarily to higher mark-to-market derivative gains recognized in the prior year quarter by Atlas Pipeline. |
* * *
Recent Events
Atlas Energy’s and Atlas Resource’s Acquisition of EP Energy Assets
On July 31, 2013, ATLS acquired approximately 45 Bcf of natural gas proved reserves in the Arkoma Basin (southeastern Oklahoma; “Arkoma Assets”) from EP Energy for approximately $64.5 million in cash net of purchase price adjustments. In addition, on the same date, ARP acquired approximately 466 Bcf of natural gas proved reserves in the Raton (New Mexico) and Black Warrior (Alabama) Basins from EP Energy for $706 million in cash net of purchase price adjustments. Both transactions have an effective date of May 1, 2013 pursuant to the terms of the acquisition agreements, through which ATLS and ARP received cash flows from EP Energy for the respective assets acquired for the period after the acquisition effective date through the closing date.
In conjunction with the closing of ARP’s transaction with EP Energy, ATLS purchased approximately 3.75 million Class C convertible preferred units from ARP for approximately $87 million.
Atlas Energy’s Syndicated $240 Million Term Loan
On July 31, 2013, ATLS issued a six year $240 million senior secured term loan credit facility. The term loan was priced at LIBOR + 550 basis points with a 1% LIBOR floor. The proceeds from the term loan were used to fund the acquisition of the Arkoma assets from EP Energy and the purchase of the Class C convertible preferred units from ARP. As a result of the issuance of the term loan, Atlas Energy’s borrowing base on its credit facility was revised to $50 million.
Atlas Resource Issuance of $250 million 9.25% 2021 Senior Notes
On July 30, 2013, ARP issued $250 million of 9.25% Senior Notes due 2021 issued at 99.297%. The Partnership received net proceeds of $242.8 million after underwriting commissions and other transaction costs, and utilized the proceeds from the offering to fund a portion of the purchase price for its acquisition of the EP Energy Assets. The Senior Notes are subject to a registration rights agreement entered in connection with the transaction, which requires ARP, among other things, to file a registration statement with the SEC and exchange the privately placed notes for registered notes by certain dates.
Atlas Resource Second Quarter 2013 Highlights
| • | ARP’s average net daily production for the second quarter 2013 was 133.6 million cubic feet of natural gas equivalents per day (“Mmcfed”). ARP continued its development activities during the quarter in the Mississippi Lime (OK) and Marble Falls (TX) regions, which have increased ARP’s net oil and liquids production. Additionally, ARP is currently in the process of connecting eight newly completed Marcellus Shale wells in Lycoming County, PA. ARP had substantial indications from these wells, which had average peak test rates of approximately 20 million cubic feet per day (“mmcfd”) per well, with one well having a peak rate as high as 32 MMcfd. ARP also continued to increase the liquid component of its production, which accounted for 21% of total volume for the second quarter 2013 compared with 7% for the prior year comparable period and 19% for the first quarter 2013. |
| • | ARP’s investment partnership margin(1) contributed $9.2 million to Adjusted EBITDA for the second quarter 2013. |
| (1) | Investment partnership margin is comprised of Well Construction and Completion margin, Well Services margin and Administration and Oversight Fee revenues. |
2
ATLS owns 100% of the general partner Class A units and the incentive distribution rights, and a 37% common limited partner interest in ARP. ATLS’ financial results are presented on a consolidated basis with those of ARP. Non-controlling interests in ARP are reflected as income (expense) in ATLS’ consolidated statements of operations and as a component of partners’ capital on its consolidated balance sheets. A consolidating statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented. Please refer to the ARP second quarter 2013 earnings release for additional details on its financial results.
Atlas Pipeline Second Quarter 2013 Highlights
| • | During the second quarter 2013, APL increased inlet volumes on its gathering and processing systems in the Mid Continent, and continued the integration of its newly acquired systems in the Arkoma (OK) and Eagle Ford Shale (TX) regions. APL processed an average of over 1.25 billion cubic feet per day (“Bcfd”) of natural gas in the second quarter 2013 amongst its WestOK, WestTX, Velma and the newly-acquired Arkoma and SouthTX systems, 84% higher than the prior year comparable quarter’s volumes. APL attained record high volumes with over 118,000 barrels per day “bpd”) of natural gas liquids generated from its five processing systems in highly prolific oil & gas basins, which primarily reside in Oklahoma and Texas. |
ATLS owns a 2.0% general partner interest, all of the incentive distribution rights, and a 7.5% common limited partner interest in APL. ATLS’ financial results are presented on a consolidated basis with those of APL. Non-controlling interests in APL are reflected as income (expense) in ATLS’ consolidated statements of operations and as a component of partners’ capital on its consolidated balance sheets. A consolidating statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented. Please refer to the APL second quarter 2013 earnings release for additional details on its financial results.
Hedge Positions
| • | In connection with its acquisition of the Arkoma Assets, ATLS entered into direct natural gas hedge positions during the second quarter 2013 and currently has approximately 9.1 Bcf of its future production hedged through 2018, including an average floor price of over $4.39 per thousand cubic feet (“mcf”) through 2018. A summary of ATLS’s derivative positions as of August 8, 2013 is provided in the financial tables of this release. |
Corporate Expenses
| • | Cash general and administrative expense, excluding amounts attributable to APL and ARP, was $2.0 million for the second quarter 2013, $1.0 million lower than the first quarter 2013 and consistent with the prior year second quarter. The decrease from first quarter 2013 was due primarily to a decrease in seasonal corporate expenses incurred during the first quarter, including yearend compliance costs. Please refer to the consolidating statements of operations provided in the financial tables of this release. |
| • | Cash interest expense was $0.4 million for the second quarter 2013, an increase of $0.2 million compared to the first quarter 2013. As of June 30, 2013, pro forma for the issuance of the term loan, ATLS had $240 million of total debt, with no borrowings outstanding under its revolving credit facility, and a cash position of approximately $54 million. |
* * *
Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Energy, L.P.’s second quarter 2013 results on Friday, August 9, 2013 at 9:00 am ET by going to the Investor Relations section of Atlas Energy’s website at www.atlasenergy.com. For those unavailable to listen to the live broadcast, the replay of the webcast will be available following the live call on the Atlas Energy website and telephonically beginning at 11:00 a.m. ET on August 9, 2013 by dialing 888-286-8010, passcode: 51594938.
Atlas Energy, L.P. (NYSE: ATLS) is a master limited partnership which owns all of the general partner Class A units and incentive distribution rights and an approximate 37% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P. Additionally, Atlas Energy owns and operates the general partner of its midstream oil & gas subsidiary, Atlas Pipeline Partners, L.P., through all of the general partner interest, all the incentive distribution rights and an approximate 6% limited partner interest. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.
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Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration & production master limited partnership which owns an interest in over 12,000 producing natural gas and oil wells, located primarily in Appalachia, the Barnett Shale (TX), the Raton Basin (NM) and Black Warrior Basin (AL). ARP is also the largest sponsor of natural gas and oil investment partnerships in the U.S. For more information, please visit our website at www.atlasresourcepartners.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.
Atlas Pipeline Partners, L.P. (NYSE: APL) is active in the gathering and processing segments of the midstream natural gas industry. In Oklahoma, southern Kansas, northern and western Texas, and Tennessee, APL owns and operates 12 active gas processing plants, 18 gas treating facilities, as well as approximately 10,100 miles of active intrastate gas gathering pipeline. APL also has a 20% interest in West Texas LPG Pipeline Limited Partnership, which is operated by Chevron Corporation. For more information, visit the Partnership’s website at www.atlaspipeline.com or contact IR@atlaspipeline.com.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. ATLS cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, 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; changes in commodity prices; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; ATLS’ level of indebtedness; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in ATLS’, ARP’s and APL’s reports filed with the U.S. Securities and Exchange Commission, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. Forward-looking statements speak only as of the date hereof, and ATLS assumes no obligation to update such statements, except as may be required by applicable law.
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ATLAS ENERGY, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per unit data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenues: |
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| Gas and oil production |
$ | 47,094 | $ | 19,460 | $ | 93,158 | $ | 36,624 | ||||||||
| Well construction and completion |
24,851 | 12,241 | 81,329 | 55,960 | ||||||||||||
| Gathering and processing |
535,922 | 256,420 | 956,009 | 561,561 | ||||||||||||
| Administration and oversight |
3,391 | 1,315 | 4,476 | 4,146 | ||||||||||||
| Well services |
4,864 | 5,252 | 9,680 | 10,258 | ||||||||||||
| Gain (loss) on mark-to-market derivatives(1) |
27,107 | 67,847 | 15,024 | 55,812 | ||||||||||||
| Other, net |
566 | 504 | 6,221 | 3,305 | ||||||||||||
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| Total revenues |
643,795 | 363,039 | 1,165,897 | 727,666 | ||||||||||||
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| Costs and expenses: |
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| Gas and oil production |
19,035 | 4,447 | 34,251 | 8,952 | ||||||||||||
| Well construction and completion |
21,609 | 10,606 | 70,721 | 48,301 | ||||||||||||
| Gathering and processing |
453,868 | 213,551 | 805,609 | 465,396 | ||||||||||||
| Well services |
2,305 | 2,414 | 4,623 | 4,844 | ||||||||||||
| General and administrative |
53,874 | 37,607 | 94,532 | 74,855 | ||||||||||||
| Depreciation, depletion and amortization |
68,580 | 32,534 | 120,246 | 62,484 | ||||||||||||
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| Total costs and expenses |
619,271 | 301,159 | 1,129,982 | 664,832 | ||||||||||||
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| Operating income |
24,524 | 61,880 | 35,915 | 62,834 | ||||||||||||
| Loss on asset sales and disposal |
(2,191 | ) | (16 | ) | (2,893 | ) | (7,021 | ) | ||||||||
| Interest expense |
(27,531 | ) | (10,294 | ) | (53,341 | ) | (19,385 | ) | ||||||||
| Loss on early extinguishment of debt |
(19 | ) | — | (26,601 | ) | — | ||||||||||
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| Net income (loss) before tax |
(5,217 | ) | 51,570 | (46,920 | ) | 36,428 | ||||||||||
| Income tax benefit |
28 | — | 37 | — | ||||||||||||
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| Net income (loss) |
(5,189 | ) | 51,570 | (46,883 | ) | 36,428 | ||||||||||
| Loss (income) attributable to non-controlling interests |
(3,058 | ) | (59,191 | ) | 26,040 | (62,556 | ) | |||||||||
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| Net loss attributable to common limited partners |
$ | (8,247 | ) | $ | (7,621 | ) | $ | (20,843 | ) | $ | (26,128 | ) | ||||
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| Net loss attributable to common limited partners per unit: |
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| Basic and Diluted |
$ | (0.16 | ) | $ | (0.15 | ) | $ | (0.41 | ) | $ | (0.51 | ) | ||||
| Weighted average common limited partner units outstanding: |
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| Basic and Diluted |
51,380 | 51,318 | 51,375 | 51,306 | ||||||||||||
| (1) | Consists principally of hydrocarbon derivative gains / (losses) that relate to the operating activities of ATLS’s consolidated subsidiary, APL. The underlying hydrocarbon derivatives do not represent present or potential future obligations of ATLS. |
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ATLAS ENERGY, L.P.
CONSOLIDATED BALANCE SHEETS
(unaudited; in thousands)
| June 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 70,430 | $ | 36,780 | ||||
| Accounts receivable |
250,755 | 196,249 | ||||||
| Current portion of derivative asset |
64,402 | 35,351 | ||||||
| Subscriptions receivable |
11,036 | 55,357 | ||||||
| Prepaid expenses and other |
72,595 | 45,255 | ||||||
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| Total current assets |
469,218 | 368,992 | ||||||
| Property, plant and equipment, net |
4,036,187 | 3,502,609 | ||||||
| Intangible assets, net |
570,999 | 200,680 | ||||||
| Investment in joint venture |
232,090 | 86,002 | ||||||
| Goodwill, net |
534,105 | 351,069 | ||||||
| Long-term derivative asset |
26,759 | 16,840 | ||||||
| Other assets, net |
92,721 | 71,002 | ||||||
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| $ | 5,962,079 | $ | 4,597,194 | |||||
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| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
| Current liabilities: |
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| Current portion of long-term debt |
$ | 522 | $ | 10,835 | ||||
| Accounts payable |
94,270 | 119,028 | ||||||
| Liabilities associated with drilling contracts |
— | 67,293 | ||||||
| Accrued producer liabilities |
140,505 | 109,725 | ||||||
| Current portion of derivative liability |
167 | — | ||||||
| Current portion of derivative payable to Drilling Partnerships |
5,969 | 11,293 | ||||||
| Accrued interest |
35,281 | 11,556 | ||||||
| Accrued well drilling and completion costs |
52,425 | 47,637 | ||||||
| Accrued liabilities |
118,006 | 103,291 | ||||||
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| Total current liabilities |
447,145 | 480,658 | ||||||
| Long-term debt, less current portion |
1,944,297 | 1,529,508 | ||||||
| Long-term derivative liability |
130 | 888 | ||||||
| Long-term derivative payable to Drilling Partnerships |
38 | 2,429 | ||||||
| Deferred income taxes, net |
35,513 | 30,258 | ||||||
| Asset retirement obligations and other |
77,890 | 73,605 | ||||||
| Commitments and contingencies |
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| Partners’ Capital: |
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| Common limited partners’ interests |
448,808 | 456,171 | ||||||
| Accumulated other comprehensive income |
13,927 | 9,699 | ||||||
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| 462,735 | 465,870 | |||||||
| Non-controlling interests |
2,994,331 | 2,013,978 | ||||||
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| Total partners’ capital |
3,457,066 | 2,479,848 | ||||||
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| $ | 5,962,079 | $ | 4,597,194 | |||||
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ATLAS ENERGY, L.P.
Financial and Operating Highlights
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net loss attributable to common limited partners per unit - basic |
$ | (0.16 | ) | $ | (0.15 | ) | $ | (0.41 | ) | $ | (0.51 | ) | ||||
| Distributable cash flow per unit(1)(2) |
$ | 0.44 | $ | 0.24 | $ | 0.75 | $ | 0.50 | ||||||||
| Cash distributions paid per unit(3) |
$ | 0.44 | $ | 0.25 | $ | 0.75 | $ | 0.50 | ||||||||
| ATLAS RESOURCE: |
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| Production volume:(4)(5) |
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| Natural gas (Mcfd) |
105,638 | 58,022 | 106,442 | 46,541 | ||||||||||||
| Oil (Bpd) |
1,281 | 290 | 1,191 | 297 | ||||||||||||
| Natural gas liquids (Bpd) |
3,386 | 463 | 3,292 | 443 | ||||||||||||
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| Total (Mcfed) |
133,641 | 62,541 | 133,341 | 50,981 | ||||||||||||
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| Average sales prices:(5) |
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| Natural gas (per Mcf) (6) |
$ | 3.31 | $ | 3.49 | $ | 3.32 | $ | 3.81 | ||||||||
| Oil (per Bbl)(7) |
$ | 90.90 | $ | 98.31 | $ | 89.97 | $ | 99.89 | ||||||||
| Natural gas liquids (per gallon) |
$ | 0.63 | $ | 0.97 | $ | 0.65 | $ | 1.01 | ||||||||
| Production costs:(5)(8) |
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| Lease operating expenses per Mcfe |
$ | 1.21 | $ | 0.71 | $ | 1.09 | $ | 0.84 | ||||||||
| Production taxes per Mcfe |
0.23 | 0.11 | 0.23 | 0.11 | ||||||||||||
| Transportation and compression expenses per Mcfe |
0.24 | 0.29 | 0.20 | 0.29 | ||||||||||||
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| Total production costs per Mcfe |
$ | 1.68 | $ | 1.11 | $ | 1.51 | $ | 1.24 | ||||||||
| ATLAS PIPELINE: |
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| Production volume:(5) |
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| Gathered gas volume(Mcfd) |
1,432,818 | 772,661 | 1,371,537 | 737,816 | ||||||||||||
| Processed gas volume (Mcfd) |
1,253,158 | 681,036 | 1,203,953 | 656,875 | ||||||||||||
| Residue gas volume (Mcfd) |
1,090,703 | 562,242 | 1,052,202 | 537,270 | ||||||||||||
| Processed NGL volume (Bpd) |
118,966 | 61,354 | 108,731 | 61,079 | ||||||||||||
| Condensate volume (Bpd) |
4,543 | 3,584 | 4,090 | 3,246 | ||||||||||||
| Average sales prices:(5) |
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| Natural gas (per Mcf) |
$ | 3.82 | $ | 2.01 | $ | 3.59 | $ | 2.26 | ||||||||
| Condensate (per Bbl) |
$ | 89.15 | $ | 87.00 | $ | 88.09 | $ | 91.95 | ||||||||
| Natural gas liquids (per gallon) |
$ | 0.84 | $ | 0.80 | $ | 0.84 | $ | 0.92 | ||||||||
| (1) | A reconciliation from net income to distributable cash flow is provided in the financial tables of this release. |
| (2) | Calculation consists of distributable cash flow divided by the weighted average common limited partner units outstanding of 51,380,000 and 51,318,000 for the three months ended June 30, 2013 and 2012, respectively, and 51,375,000 and 51,306,000 for the six months ended June 30, 2013 and 2012, respectively. |
| (3) | Represents the cash distributions declared per limited partner unit for the respective period and paid by ATLS within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter. |
| (4) | Production quantities consist of the sum of (i) ARP’s proportionate share of production from wells in which it has a direct interest, based on ARP’s proportionate net revenue interest in such wells, and (ii) ARP’s proportionate share of production from wells owned by the investment partnerships in which ARP has an interest, based on its equity interest in each such partnership and based on each partnership’s proportionate net revenue interest in these wells. |
| (5) | “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. |
| (6) | ARP’s average sales price for natural gas before the effects of financial hedging was $3.47 per Mcf and $2.03 per Mcf for the three months ended June 30, 2013 and 2012, respectively, and $3.18 per Mcf and $2.76 per Mcf for the six months ended June 30, 2013 and 2012, respectively. These amounts exclude the impact of subordination of production revenues to investor partners within the investor partnerships. Including the effects of subordination, average natural gas sales prices were $2.95 per Mcf ($3.10 per Mcf before the effects of financial hedging) and $2.87 per Mcf ($1.40 per Mcf before the |
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| effects of financial hedging) for the three months ended June 30, 2013 and 2012, respectively, and $2.98 per Mcf ($2.85 per Mcf before the effects of financial hedging) and $3.29 per Mcf ($2.24 per Mcf before the effects of financial hedging) for the six months ended June 30, 2013 and 2012, respectively. |
| (7) | ARP’s average sales price for oil before the effects of financial hedging was $92.33 per barrel and $94.39 per barrel for the three months ended June 30, 2013 and 2012, respectively, and $91.63 per barrel and $97.60 per barrel for the six months ended June 30, 2013 and 2012, respectively. |
| (8) | 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, lease operating expenses per Mcfe were $1.10 per Mcfe ($1.57 per Mcfe for total production costs) and $0.38 per Mcfe ($0.78 per Mcfe for total production costs) for the three months ended June 30, 2013 and 2012, respectively, and $1.00 per Mcfe ($1.42 per Mcfe for total production costs) and $0.56 per Mcfe ($0.96 per Mcfe for total production costs) for the six months ended June 30, 2013 and 2012, respectively. |
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ATLAS ENERGY, L.P.
Financial Information
(unaudited; in thousands except per unit amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Adjusted EBITDA and Distributable Cash Flow Summary: |
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| Atlas Resource Cash Distributions Earned(1): |
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| Limited Partner Units |
$ | 11,320 | $ | 8,385 | $ | 22,011 | $ | 10,900 | ||||||||
| Class A Units (2%) |
697 | 263 | 1,195 | 327 | ||||||||||||
| Incentive Distribution Rights |
1,187 | — | 1,635 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Atlas Resource Cash Distributions Earned(1) |
13,204 | 8,648 | 24,841 | 11,227 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| per limited partner unit |
$ | 0.54 | $ | 0.40 | $ | 1.05 | $ | 0.52 | ||||||||
| Atlas Pipeline Cash Distributions Earned(1): |
||||||||||||||||
| Limited Partner Units |
3,568 | 3,222 | 6,963 | 6,444 | ||||||||||||
| General Partner 2% Interest |
1,074 | 649 | 2,055 | 1,297 | ||||||||||||
| Incentive Distribution Rights |
4,801 | 1,571 | 7,797 | 3,140 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Atlas Pipeline Cash Distributions Earned(1) |
9,443 | 5,442 | 16,815 | 10,881 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| per limited partner unit |
$ | 0.62 | $ | 0.56 | $ | 1.21 | $ | 1.12 | ||||||||
| Total Cash Distributions Earned |
22,647 | 14,090 | 41,656 | 22,108 | ||||||||||||
| Gross Margin for Acquisitions(2) |
2,959 | — | 2,959 | — | ||||||||||||
| E&P Operations Adjusted EBITDA prior to spinoff on March 5, 2012(3) |
— | — | — | 9,111 | ||||||||||||
| Cash general and administrative expenses(4) |
(2,006 | ) | (2,056 | ) | (4,993 | ) | (4,516 | ) | ||||||||
| Other, net |
723 | 197 | 728 | 446 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA(5) |
24,323 | 12,231 | 40,350 | 27,149 | ||||||||||||
| Cash interest expense(6) |
(355 | ) | (40 | ) | (531 | ) | (173 | ) | ||||||||
| Cash interest expense on acquisition financing(2) |
(1,089 | ) | — | (1,089 | ) | — | ||||||||||
| Maintenance capital expenditures(2)(3) |
(400 | ) | — | (400 | ) | (1,231 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributable Cash Flow(5) |
$ | 22,479 | $ | 12,191 | $ | 38,330 | $ | 25,745 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions Paid(7) |
$ | 22,609 | $ | 12,831 | $ | 38,535 | $ | 25,660 | ||||||||
| per limited partner unit |
$ | 0.44 | $ | 0.25 | $ | 0.75 | $ | 0.50 | ||||||||
| Distribution coverage ratio |
1.0x | 1.0x | 1.0x | 1.0x | ||||||||||||
| Reconciliation of non-GAAP measures to net loss (5): |
||||||||||||||||
| Distributable cash flow |
$ | 22,479 | $ | 12,191 | $ | 38,330 | $ | 25,745 | ||||||||
| Gross Margin for Acquisitions(2) |
(2,959 | ) | — | (2,959 | ) | — | ||||||||||
| Cash interest expense on acquisition financing(2) |
1,089 | — | 1,089 | — | ||||||||||||
| E&P Operations EBITDA prior to spinoff on March 5, 2012(3) |
— | — | — | (9,111 | ) | |||||||||||
| Atlas Resource net loss attributable to ATLS common limited partners |
(3,111 | ) | (11,657 | ) | (6,449 | ) | (16,599 | ) | ||||||||
| Atlas Resource cash distributions earned by ATLS(1) |
(13,204 | ) | (8,648 | ) | (24,841 | ) | (11,227 | ) | ||||||||
| Atlas Pipeline net income attributable to ATLS common limited partners |
3,968 | 10,611 | 3,535 | 12,450 | ||||||||||||
| Atlas Pipeline cash distributions earned by ATLS(1) |
(9,443 | ) | (5,442 | ) | (16,815 | ) | (10,881 | ) | ||||||||
| Non-recurring spinoff and acquisition costs |
(1,157 | ) | — | (1,157 | ) | (8,370 | ) | |||||||||
| Amortization of deferred finance costs |
(87 | ) | (29 | ) | (146 | ) | (129 | ) | ||||||||
| Non-cash stock compensation expense |
(5,578 | ) | (4,568 | ) | (11,354 | ) | (9,299 | ) | ||||||||
| Maintenance capital expenditures(2)(3) |
400 | — | 400 | 1,231 | ||||||||||||
| Other non-cash adjustments |
(417 | ) | (79 | ) | (249 | ) | 62 | |||||||||
| Premiums paid on swaption derivative contracts associated with asset acquisition |
(227 | ) | — | (227 | ) | — | ||||||||||
| Income attributable to non-controlling interests |
3,058 | 59,191 | (26,040 | ) | 62,556 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) |
$ | (5,189 | ) | $ | 51,570 | $ | (46,883 | ) | $ | 36,428 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Represents the cash distribution paid by ARP and APL within 45 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter. |
9
| (2) | Includes gross margin generated and maintenance capital expenditures for the three months ended June 30, 2013 for the Arkoma assets, which were acquired by ATLS on July 31, 2013. Pursuant to the terms of the acquisition agreements, ATLS received cash flows from EP Energy for the period after the acquisition effective date of May 1, 2013 through the closing date of July 31, 2013 as an acquisition adjustment, which is not recognized within ATLS’ earnings under generally accepted accounting principles (GAAP). For purposes of declaring ATLS’ quarterly distribution for the second quarter 2013, the Partnership evaluated its distributable cash flow for full quarterly period including the gross margin for the Arkoma assets acquired, pro forma cash interest expense on the borrowings to fund the acquisition purchase price, and estimated maintenance capital expenditures associated with the Arkoma assets’ gross margin. |
| (3) | Represents the E&P Operations Adjusted EBITDA generated and maintenance capital expenditures incurred by ATLS on a stand-alone basis prior to the transfer of its E&P assets to ARP on March 5, 2012 for the six months ended June 30, 2012. |
| (4) | Excludes non-cash stock-compensation expense, non-recurring spinoff costs and non-recurring acquisition costs incurred. |
| (5) | Adjusted EBITDA and distributable cash flow are non-GAAP (generally accepted accounting principles) financial measures under the rules of the Securities and Exchange Commission. Management of ATLS believes that adjusted EBITDA and distributable cash flow provide additional information for evaluating ATLS’s performance, among other things. These measures are widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards. Adjusted EBITDA is also a financial measurement that, with certain negotiated adjustments, is utilized within ATLS’s financial covenants under its credit facility. Adjusted EBITDA and distributable cash flow are not measures of financial performance under GAAP and, accordingly, should not be considered as a substitute for net income, operating income, or cash flows from operating activities in accordance with GAAP. |
| (6) | Excludes non-cash amortization of deferred financing costs. |
| (7) | Represents the cash distribution paid within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter. |
10
ATLAS ENERGY, L.P.
CAPITALIZATION INFORMATION
(unaudited; in thousands)
| June 30, 2013 | ||||||||||||||||
| Atlas | Atlas | Atlas | ||||||||||||||
| Energy | Resource | Pipeline | Consolidated | |||||||||||||
| Total debt |
$ | 34,000 | $ | 275,000 | $ | 1,635,297 | $ | 1,944,297 | ||||||||
| Less: Cash |
(6,396 | ) | (42,953 | ) | (21,081 | ) | (70,430 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net debt |
27,604 | 232,047 | 1,614,216 | 1,873,867 | ||||||||||||
| Partners’ capital |
462,735 | 1,142,765 | 2,322,161 | 3,457,066 | (1) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total capitalization |
$ | 490,339 | $ | 1,374,812 | $ | 3,936,377 | $ | 5,330,933 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Ratio of net debt to capitalization |
0.06x | |||||||||||||||
| (1) | Net of eliminated amounts. |
| December 31, 2012 | ||||||||||||||||
| Atlas | Atlas | Atlas | ||||||||||||||
| Energy | Resource | Pipeline | Consolidated | |||||||||||||
| Total debt |
$ | 9,000 | $ | 351,425 | $ | 1,179,918 | $ | 1,540,343 | ||||||||
| Less: Cash |
(10,194 | ) | (23,188 | ) | (3,398 | ) | (36,780 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net debt /(cash) |
(1,194 | ) | 328,237 | 1,176,520 | 1,503,563 | |||||||||||
| Partners’ capital |
465,870 | 862,006 | 1,606,408 | 2,479,848 | (2) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total capitalization |
$ | 464,676 | $ | 1,190,243 | $ | 2,782,928 | $ | 3,983,411 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Ratio of net debt to capitalization |
0.00x | |||||||||||||||
| (2) | Net of eliminated amounts. |
11
ATLAS ENERGY, L.P.
Hedge Position Summary – Directly-Held E&P Assets
(as of August 8, 2013)
Natural Gas
| Swaptions |
||||||||
| Production Period Ended December 31, |
Average Fixed Price (per mmbtu)(a) |
Volumes (mmbtus)(a) |
||||||
|
2013(b) |
$ | 4.06 | 1,000,000 | |||||
| 2014 |
$ | 4.16 | 2,760,000 | |||||
| 2015 |
$ | 4.29 | 2,280,000 | |||||
| 2016 |
$ | 4.42 | 1,440,000 | |||||
| 2017 |
$ | 4.59 | 1,200,000 | |||||
| 2018 |
$ | 4.80 | 420,000 | |||||
| (a) | “mmbtu” represents million metric British thermal units.; “bbl” represents barrel. |
| (b) | Reflects hedges covering the last six months of 2013. |
12
ATLAS ENERGY, L.P.
CONSOLIDATING STATEMENTS OF OPERATIONS
(unaudited; in thousands)
Three Months Ended June 30, 2013
| Atlas | Atlas | Atlas | ||||||||||||||||||
| Energy | Resource | Pipeline | Eliminations | Consolidated | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Gas and oil production |
$ | — | $ | 47,094 | $ | — | $ | — | $ | 47,094 | ||||||||||
| Well construction and completion |
— | 24,851 | — | — | 24,851 | |||||||||||||||
| Gathering and processing |
— | 4,463 | 531,536 | (77 | ) | 535,922 | ||||||||||||||
| Administration and oversight |
— | 3,391 | — | — | 3,391 | |||||||||||||||
| Well services |
— | 4,864 | — | — | 4,864 | |||||||||||||||
| Gain on mark-to-market derivatives |
— | — | 27,107 | — | 27,107 | |||||||||||||||
| Other, net |
79 | (1,337 | ) | 1,824 | — | 566 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
79 | 83,326 | 560,467 | (77 | ) | 643,795 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Costs and expenses: |
||||||||||||||||||||
| Gas and oil production |
— | 19,035 | — | — | 19,035 | |||||||||||||||
| Well construction and completion |
— | 21,609 | — | — | 21,609 | |||||||||||||||
| Gathering and processing |
— | 4,959 | 448,986 | (77 | ) | 453,868 | ||||||||||||||
| Well services |
— | 2,305 | — | — | 2,305 | |||||||||||||||
| General and administrative |
8,741 | 14,217 | 30,916 | — | 53,874 | |||||||||||||||
| Depreciation, depletion and amortization |
— | 22,197 | 46,383 | — | 68,580 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total costs and expenses |
8,741 | 84,322 | 526,285 | (77 | ) | 619,271 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating income (loss) |
(8,662 | ) | (996 | ) | 34,182 | — | 24,524 | |||||||||||||
| Loss on asset sales and disposal |
— | (672 | ) | (1,519 | ) | — | (2,191 | ) | ||||||||||||
| Interest expense |
(442 | ) | (4,508 | ) | (22,581 | ) | — | (27,531 | ) | |||||||||||
| Loss on early extinguishment of debt |
— | — | (19 | ) | — | (19 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) before tax |
(9,104 | ) | (6,176 | ) | 10,063 | — | (5,217 | ) | ||||||||||||
| Income tax benefit |
— | — | 28 | — | 28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
(9,104 | ) | (6,176 | ) | 10,091 | — | (5,189 | ) | ||||||||||||
| Income attributable to non-controlling interests |
— | — | (1,810 | ) | (1,248 | ) | (3,058 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common limited partners |
$ | (9,104 | ) | $ | (6,176 | ) | $ | 8,281 | $ | (1,248 | ) | $ | (8,247 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
13
ATLAS ENERGY, L.P.
CONSOLIDATING STATEMENTS OF OPERATIONS
(unaudited; in thousands)
Three Months Ended June 30, 2012
| Atlas | Atlas | Atlas | ||||||||||||||||||
| Energy | Resource | Pipeline | Eliminations | Consolidated | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Gas and oil production |
$ | — | $ | 19,460 | $ | — | $ | — | $ | 19,460 | ||||||||||
| Well construction and completion |
— | 12,241 | — | — | 12,241 | |||||||||||||||
| Gathering and processing |
— | 2,863 | 253,679 | (122 | ) | 256,420 | ||||||||||||||
| Administration and oversight |
— | 1,315 | — | — | 1,315 | |||||||||||||||
| Well services |
— | 5,252 | — | — | 5,252 | |||||||||||||||
| Gain on mark-to-market derivatives |
— | — | 67,847 | — | 67,847 | |||||||||||||||
| Other, net |
118 | (4,086 | ) | 4,472 | — | 504 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
118 | 37,045 | 325,998 | (122 | ) | 363,039 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Costs and expenses: |
||||||||||||||||||||
| Gas and oil production |
— | 4,447 | — | — | 4,447 | |||||||||||||||
| Well construction and completion |
— | 10,606 | — | — | 10,606 | |||||||||||||||
| Gathering and processing |
— | 3,953 | 209,720 | (122 | ) | 213,551 | ||||||||||||||
| Well services |
— | 2,414 | — | — | 2,414 | |||||||||||||||
| General and administrative |
6,624 | 20,538 | 10,445 | — | 37,607 | |||||||||||||||
| Depreciation, depletion and amortization |
— | 10,822 | 21,712 | — | 32,534 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total costs and expenses |
6,624 | 52,780 | 241,877 | (122 | ) | 301,159 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating income (loss) |
(6,506 | ) | (15,735 | ) | 84,121 | — | 61,880 | |||||||||||||
| Loss on asset sales and disposal |
— | (16 | ) | — | — | (16 | ) | |||||||||||||
| Interest expense |
(69 | ) | (956 | ) | (9,269 | ) | — | (10,294 | ) | |||||||||||
| Loss on early extinguishment of debt |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
(6,575 | ) | (16,707 | ) | 74,852 | — | 51,570 | |||||||||||||
| Income attributable to non-controlling interests |
— | — | (1,061 | ) | (58,130 | ) | (59,191 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common limited partners |
$ | (6,575 | ) | $ | (16,707 | ) | $ | 73,791 | $ | (58,130 | ) | $ | (7,621 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
14
ATLAS ENERGY, L.P.
CONSOLIDATING STATEMENTS OF OPERATIONS
(unaudited; in thousands)
Six Months Ended June 30, 2013
| Atlas | Atlas | Atlas | ||||||||||||||||||
| Energy | Resource | Pipeline | Eliminations | Consolidated | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Gas and oil production |
$ | — | $ | 93,158 | $ | — | $ | — | $ | 93,158 | ||||||||||
| Well construction and completion |
— | 81,329 | — | — | 81,329 | |||||||||||||||
| Gathering and processing |
— | 8,048 | 948,109 | (148 | ) | 956,009 | ||||||||||||||
| Administration and oversight |
— | 4,476 | — | — | 4,476 | |||||||||||||||
| Well services |
— | 9,680 | — | — | 9,680 | |||||||||||||||
| Gain on mark-to-market derivatives |
— | — | 15,024 | — | 15,024 | |||||||||||||||
| Other, net |
252 | (1,317 | ) | 7,286 | — | 6,221 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
252 | 195,374 | 970,419 | (148 | ) | 1,165,897 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Costs and expenses: |
||||||||||||||||||||
| Gas and oil production |
— | 34,251 | — | — | 34,251 | |||||||||||||||
| Well construction and completion |
— | 70,721 | — | — | 70,721 | |||||||||||||||
| Gathering and processing |
— | 9,372 | 796,385 | (148 | ) | 805,609 | ||||||||||||||
| Well services |
— | 4,623 | — | — | 4,623 | |||||||||||||||
| General and administrative |
17,504 | 31,784 | 45,244 | — | 94,532 | |||||||||||||||
| Depreciation, depletion and amortization |
— | 43,405 | 76,841 | — | 120,246 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total costs and expenses |
17,504 | 194,156 | 918,470 | (148 | ) | 1,129,982 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating income (loss) |
(17,252 | ) | 1,218 | 51,949 | — | 35,915 | ||||||||||||||
| Loss on asset sales and disposal |
— | (1,374 | ) | (1,519 | ) | — | (2,893 | ) | ||||||||||||
| Interest expense |
(677 | ) | (11,397 | ) | (41,267 | ) | — | (53,341 | ) | |||||||||||
| Loss on early extinguishment of debt |
— | — | (26,601 | ) | — | (26,601 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss before tax |
(17,929 | ) | (11,553 | ) | (17,438 | ) | — | (46,920 | ) | |||||||||||
| Income tax benefit |
— | — | 37 | — | 37 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss |
(17,929 | ) | (11,553 | ) | (17,401 | ) | — | (46,883 | ) | |||||||||||
| (Income) loss attributable to non-controlling interests |
— | — | (3,179 | ) | 29,219 | 26,040 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net loss attributable to common limited partners |
$ | (17,929 | ) | $ | (11,553 | ) | $ | (20,580 | ) | $ | 29,219 | $ | (20,843 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
15
ATLAS ENERGY, L.P.
CONSOLIDATING STATEMENTS OF OPERATIONS
(unaudited; in thousands)
Six Months Ended June 30, 2012
| Atlas | Atlas | Atlas | ||||||||||||||||||
| Energy | Resource | Pipeline | Eliminations | Consolidated | ||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Gas and oil production |
$ | — | $ | 36,624 | $ | — | $ | — | $ | 36,624 | ||||||||||
| Well construction and completion |
— | 55,960 | — | — | 55,960 | |||||||||||||||
| Gathering and processing |
— | 6,177 | 555,585 | (201 | ) | 561,561 | ||||||||||||||
| Administration and oversight |
— | 4,146 | — | — | 4,146 | |||||||||||||||
| Well services |
— | 10,258 | — | — | 10,258 | |||||||||||||||
| Gain on mark-to-market derivatives |
— | — | 55,812 | — | 55,812 | |||||||||||||||
| Other, net |
508 | (5,019 | ) | 7,816 | — | 3,305 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
508 | 108,146 | 619,213 | (201 | ) | 727,666 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Costs and expenses: |
||||||||||||||||||||
| Gas and oil production |
— | 8,952 | — | — | 8,952 | |||||||||||||||
| Well construction and completion |
— | 48,301 | — | — | 48,301 | |||||||||||||||
| Gathering and processing |
— | 8,627 | 456,970 | (201 | ) | 465,396 | ||||||||||||||
| Well services |
— | 4,844 | — | — | 4,844 | |||||||||||||||
| General and administrative |
22,185 | 32,280 | 20,390 | — | 74,855 | |||||||||||||||
| Depreciation, depletion and amortization |
— | 19,930 | 42,554 | — | 62,484 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total costs and expenses |
22,185 | 122,934 | 519,914 | (201 | ) | 664,832 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating income (loss) |
(21,677 | ) | (14,788 | ) | 99,299 | — | 62,834 | |||||||||||||
| Loss on asset sales and disposal |
— | (7,021 | ) | — | — | (7,021 | ) | |||||||||||||
| Interest expense |
(302 | ) | (1,106 | ) | (17,977 | ) | — | (19,385 | ) | |||||||||||
| Loss on early extinguishment of debt |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
(21,979 | ) | (22,915 | ) | 81,322 | — | 36,428 | |||||||||||||
| Income attributable to non-controlling interests |
— | — | (2,597 | ) | (59,959 | ) | (62,556 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) attributable to common limited partners |
$ | (21,979 | ) | $ | (22,915 | ) | $ | 78,725 | $ | (59,959 | ) | $ | (26,128 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
16
ATLAS ENERGY, L.P.
CONDENSED CONSOLIDATING BALANCE SHEETS
(unaudited; in thousands)
June 30, 2013
| Atlas | Atlas | Atlas | ||||||||||||||||||
| Energy | Resource | Pipeline | Eliminations | Consolidated | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: |
||||||||||||||||||||
| Cash and cash equivalents |
$ | 6,396 | $ | 42,953 | $ | 21,081 | $ | — | $ | 70,430 | ||||||||||
| Accounts receivable |
2 | 43,809 | 206,944 | — | 250,755 | |||||||||||||||
| Receivable from (advances from) affiliates |
2,995 | 572 | (3,567 | ) | — | — | ||||||||||||||
| Current portion of derivative asset |
3,592 | 35,575 | 25,235 | — | 64,402 | |||||||||||||||
| Subscriptions receivable |
— | 11,036 | — | — | 11,036 | |||||||||||||||
| Prepaid expenses and other |
69 | 9,765 | 62,761 | — | 72,595 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current assets |
13,054 | 143,710 | 312,454 | — | 469,218 | |||||||||||||||
| Property, plant and equipment, net |
— | 1,413,109 | 2,623,078 | — | 4,036,187 | |||||||||||||||
| Intangible assets, net |
— | 1,156 | 569,843 | — | 570,999 | |||||||||||||||
| Investment in joint venture |
— | — | 232,090 | — | 232,090 | |||||||||||||||
| Goodwill, net |
— | 31,784 | 502,321 | — | 534,105 | |||||||||||||||
| Long-term derivative asset |
— | 12,168 | 14,591 | — | 26,759 | |||||||||||||||
| Investment in subsidiaries |
470,595 | — | — | (470,595 | ) | — | ||||||||||||||
| Other assets, net |
23,523 | 22,968 | 46,230 | — | 92,721 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 507,172 | $ | 1,624,895 | $ | 4,300,607 | $ | (470,595 | ) | $ | 5,962,079 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||||||||
| Current liabilities: |
||||||||||||||||||||
| Current portion of long-term debt |
$ | — | $ | — | $ | 522 | $ | — | $ | 522 | ||||||||||
| Accounts payable |
145 | 57,708 | 36,417 | — | 94,270 | |||||||||||||||
| Accrued producer liabilities |
— | — | 140,505 | — | 140,505 | |||||||||||||||
| Current portion of derivative liability |
— | 72 | 95 | — | 167 | |||||||||||||||
| Current portion of derivative payable to Drilling Partnerships |
— | 5,969 | — | — | 5,969 | |||||||||||||||
| Accrued interest |
34 | 9,354 | 25,893 | — | 35,281 | |||||||||||||||
| Accrued well drilling and completion costs |
— | 52,425 | — | — | 52,425 | |||||||||||||||
| Accrued liabilities |
6,928 | 13,261 | 97,817 | — | 118,006 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current liabilities |
7,107 | 138,789 | 301,249 | — | 447,145 | |||||||||||||||
| Long-term debt, less current portion |
34,000 | 275,000 | 1,635,297 | — | 1,944,297 | |||||||||||||||
| Long-term derivative liability |
— | 130 | — | — | 130 | |||||||||||||||
| Long-term derivative payable to Drilling Partnerships |
— | 38 | — | — | 38 | |||||||||||||||
| Deferred income taxes, net |
— | — | 35,513 | — | 35,513 | |||||||||||||||
| Asset retirement obligations and other |
3,330 | 68,173 | 6,387 | — | 77,890 | |||||||||||||||
| Partners’ Capital: |
||||||||||||||||||||
| Common limited partners’ interests |
448,808 | 1,106,447 | 2,277,682 | (3,384,129 | ) | 448,808 | ||||||||||||||
| Accumulated other comprehensive income |
13,927 | 36,318 | — | (36,318 | ) | 13,927 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 462,735 | 1,142,765 | 2,277,682 | (3,420,447 | ) | 462,735 | |||||||||||||||
| Non-controlling interests |
— | — | 44,479 | 2,949,852 | 2,994,331 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total partners’ capital |
462,735 | 1,142,765 | 2,322,161 | (470,595 | ) | 3,457,066 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 507,172 | $ | 1,624,895 | $ | 4,300,607 | $ | (470,595 | ) | $ | 5,962,079 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
17
ATLAS ENERGY, L.P.
CONDENSED CONSOLIDATING BALANCE SHEETS
(unaudited; in thousands)
December 31, 2012
| Atlas | Atlas | Atlas | ||||||||||||||||||
| Energy | Resource | Pipeline | Eliminations | Consolidated | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: |
||||||||||||||||||||
| Cash and cash equivalents |
$ | 10,194 | $ | 23,188 | $ | 3,398 | $ | — | $ | 36,780 | ||||||||||
| Accounts receivable |
5 | 38,718 | 157,526 | — | 196,249 | |||||||||||||||
| Receivable from (advances from) affiliates |
11,353 | (5,853 | ) | (5,500 | ) | — | — | |||||||||||||
| Current portion of derivative asset |
— | 12,274 | 23,077 | — | 35,351 | |||||||||||||||
| Subscriptions receivable |
— | 55,357 | — | — | 55,357 | |||||||||||||||
| Prepaid expenses and other |
118 | 9,063 | 36,074 | — | 45,255 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current assets |
21,670 | 132,747 | 214,575 | — | 368,992 | |||||||||||||||
| Property, plant and equipment, net |
— | 1,302,228 | 2,200,381 | — | 3,502,609 | |||||||||||||||
| Goodwill and intangible assets, net |
— | 33,104 | 518,645 | — | 551,749 | |||||||||||||||
| Long-term derivative asset |
— | 8,898 | 7,942 | — | 16,840 | |||||||||||||||
| Investment in joint venture |
— | — | 86,002 | — | 86,002 | |||||||||||||||
| Investment in subsidiaries |
454,436 | — | — | (454,436 | ) | — | ||||||||||||||
| Other assets, net |
22,287 | 16,122 | 32,593 | — | 71,002 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 498,393 | $ | 1,493,099 | $ | 3,060,138 | $ | (454,436 | ) | $ | 4,597,194 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||||||||
| Current liabilities: |
||||||||||||||||||||
| Current portion of long-term debt |
$ | — | $ | — | $ | 10,835 | $ | — | $ | 10,835 | ||||||||||
| Accounts payable |
171 | 59,549 | 59,308 | — | 119,028 | |||||||||||||||
| Liabilities associated with drilling contracts |
— | 67,293 | — | — | 67,293 | |||||||||||||||
| Accrued producer liabilities |
— | — | 109,725 | — | 109,725 | |||||||||||||||
| Current portion of derivative payable to Drilling Partnerships |
— | 11,293 | — | — | 11,293 | |||||||||||||||
| Accrued interest |
4 | 1,153 | 10,399 | — | 11,556 | |||||||||||||||
| Accrued well drilling and completion costs |
— | 47,637 | — | — | 47,637 | |||||||||||||||
| Accrued liabilities |
21,304 | 24,235 | 57,752 | — | 103,291 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total current liabilities |
21,479 | 211,160 | 248,019 | — | 480,658 | |||||||||||||||
| Long-term debt, less current portion |
9,000 | 351,425 | 1,169,083 | — | 1,529,508 | |||||||||||||||
| Long-term derivative liability |
— | 888 | — | — | 888 | |||||||||||||||
| Long-term derivative payable to Drilling Partnerships |
— | 2,429 | — | — | 2,429 | |||||||||||||||
| Deferred income taxes, net |
— | — | 30,258 | — | 30,258 | |||||||||||||||
| Asset retirement obligations and other |
2,044 | 65,191 | 6,370 | — | 73,605 | |||||||||||||||
| Partners’ Capital: |
||||||||||||||||||||
| Common limited partners’ interests |
456,171 | 840,437 | 1,539,177 | (2,379,614 | ) | 456,171 | ||||||||||||||
| Accumulated other comprehensive income |
9,699 | 21,569 | — | (21,569 | ) | 9,699 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 465,870 | 862,006 | 1,539,177 | (2,401,183 | ) | 465,870 | |||||||||||||||
| Non-controlling interests |
— | — | 67,231 | 1,946,747 | 2,013,978 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total partners’ capital |
465,870 | 862,006 | 1,606,408 | (454,436 | ) | 2,479,848 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 498,393 | $ | 1,493,099 | $ | 3,060,138 | $ | (454,436 | ) | $ | 4,597,194 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
18
ATLAS ENERGY, L.P.
Ownership Interests Summary
| Atlas Energy Ownership Interests as of June 30, 2013: |
Amount | Overall Ownership Interest Percentage |
||||||
| ATLAS RESOURCE: |
||||||||
| General partner interest |
100 | % | 2.0 | % | ||||
| Common units |
20,962,485 | 33.1 | % | |||||
| Incentive distribution rights |
100 | % | N/A | |||||
|
|
|
|||||||
| Total Atlas Energy ownership interests in Atlas Resource(1) |
35.1 | % | ||||||
|
|
|
|||||||
| ATLAS PIPELINE: |
||||||||
| General partner interest |
100 | % | 2.0 | % | ||||
| Common units |
5,754,253 | 6.3 | % | |||||
| Incentive distribution rights |
100 | % | N/A | |||||
|
|
|
|||||||
| Total Atlas Energy ownership interests in Atlas Pipeline |
8.3 | % | ||||||
|
|
|
|||||||
| LIGHTFOOT CAPITAL PARTNERS, GP LLC: |
||||||||
| Approximate general partner ownership interest |
15.9 | % | ||||||
| Approximate limited partner ownership interest |
12.1 | % | ||||||
| (1) | As of August 9, 2013, subsequent to its purchase of Atlas Resource’s preferred limited partner units issued in connection with the EP Energy Acquisition, Atlas Energy had a 36.9% total ownership interest in Atlas Resource. |
19