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

Aug 06, 2015, 18:38 ET from Atlas Energy Group, LLC

PITTSBURGH, Aug. 6, 2015 /PRNewswire/ -- Atlas Energy Group, LLC (NYSE: ATLS) ("Atlas Energy", the "Company" or "ATLS") today reported operating and financial results for the second quarter 2015.

  • Atlas Energy's Distributable Cash Flow, a non-GAAP measure, was approximately $5.0 million(1), or $0.19 per common unit, in the second quarter 2015.
  • Atlas Resource Partners, L.P. (NYSE: ARP), Atlas Energy's E&P subsidiary, paid monthly cash distributions totaling $0.325 per common limited partner unit for the second quarter 2015. The most recent ARP distribution for June 2015 will be paid on August 14, 2015 to holders of record as of August 7, 2015. Atlas Energy received $9.4 million in cash distributions in the second quarter 2015 from ownership in ARP.
  • Atlas Growth Partners, L.P. ("AGP"), Atlas Energy's private E&P development subsidiary, recently completed its initial fundraising of approximately $233 million in investor capital for its operations, which are primarily focused in the Eagle Ford Shale.
  • In July 2015, Arc Logistics Partners, LP (NYSE: ARCX), a master limited partnership of which 16% of its general partner is owned by ATLS through the Company's interest in Lightfoot Capital Partners, announced that it acquired all of the limited liability company interests of UET Midstream, LLC, a crude oil and terminal business, from United Energy Trading, LLC and Hawkeye Midstream, LLC for a total adjusted purchase price of $76.6 million

ATLS owns 100% of ARP's general partner Class A units and incentive distribution rights, and an approximate 25% limited partner interest in ARP. ATLS' financial results are presented on a consolidated basis with those of ARP. Non-controlling interests in ARP are reflected as an adjustment to net income in ATLS' consolidated statements of operations and as a component of unitholders' equity on its consolidated balance sheets. A consolidating statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented. Please refer to the ARP second quarter 2015 earnings release for additional details on its financial results.

(1)

A reconciliation of GAAP net income (loss) to Distributable Cash Flow is provided in the financial tables of this release. Please see footnote 61 to the Financial Information table of this release.

Recent Events

Sale of Arkoma Properties to ARP

On June 5, 2015, ARP acquired Atlas Energy's natural gas producing properties in the Arkoma basin for approximately $35.5 million. The Arkoma assets consist of approximately 41 billion cubic feet ("Bcf") of mature, low-decline natural gas reserves, which currently produce approximately 10.5 million cubic feet per day from over 550 active wells. ATLS used the net proceeds from the sale of the Arkoma assets to pay down a portion of its existing term loan, which had a carrying value of $77.4 million, net of unamortized discount of $5.3 million, on its consolidated balance sheet as of June 30, 2015. ATLS and ARP accounted for the Arkoma acquisition as a transaction between entities under common control, and accordingly recast the comparative prior periods presented as if the transaction had occurred at the beginning of the respective periods.

ARP's Second Quarter 2015 Highlights

  • ARP's average net daily production for the second quarter 2015 was 270.8 million cubic feet equivalents per day ("Mmcfed"), as compared to 273.0 Mmcfed for the prior year second quarter. ARP's second quarter 2015 production was comprised of 81% natural gas, 12% oil and 7% natural gas liquids. Oil volumes increased to 5,293 barrels per day ("bpd") in the second quarter 2015, compared to 2,084 bpd in the prior year quarter. The increase in oil volumes was due primarily to the acquisition of oil-rich production in the Eagle Ford Shale and Rangely field in 2014.
  • ARP's net realized price for natural gas including the effect of hedge positions was $3.33 per thousand cubic feet ("mcf") for the second quarter 2015, compared to $3.79/mcf for the prior year second quarter. Net realized oil prices including the effect of hedge positions averaged $83.19 per barrel ("bbl") for the second quarter 2015, compared to $90.66/bbl for the prior year second quarter. ARP was hedged approximately 73% on its natural gas production in the second quarter 2015 and approximately 100% on its oil production.
  • Investment partnership margin was $6.7 million in the second quarter 2015, compared with $10.2 million for the prior year comparable quarter. The decrease in investment partnership margin was due to more partnership wells being initiated in the prior year quarter which generated higher administration and oversight fees.
  • For the remainder of 2015 and the full years 2016, 2017 and 2018, ARP is hedged approximately 72%, 67%, 62% and 51%, respectively, for its natural gas production at an average price of $4.17/mcf, and hedged approximately 100%, 85%, 62% and 59%, respectively, for oil at an average price of approximately $78/bbl based on second quarter 2015 average production. A summary of ARP's derivative positions as of August 6, 2015 is provided in the financial tables of ARP's second quarter earnings release.

Atlas Growth Partners

Atlas Energy's private E&P development subsidiary, Atlas Growth Partners, L.P., completed its recent fundraising efforts during the second quarter 2015, accumulating approximately $233 million in investor capital. These funds are being deployed into AGP's operations, namely in the oil-rich Eagle Ford Shale. AGP had net daily production of approximately 2,800 Mmcfed in the second quarter 2015, including production from 4 wells in the Eagle Ford Shale.

Corporate Expenses

  • Cash general and administrative expense, excluding amounts attributable to AGP and ARP, was $2.0 million for the second quarter 2015, approximately $1.4 million lower than the first quarter 2015. The decrease in expense from the first quarter 2015 was due primarily to the seasonality of certain ATLS' public company costs.  Please refer to the consolidating statements of operations provided in the financial tables of this release.
  • Cash interest expense was $2.3 million for the second quarter 2015, compared to $2.5 million for the prior year comparable quarter. ATLS had approximately $77.4 million of debt on its consolidated balance sheet at June 30, 2015, net of unamortized discount of $5.3 million, and a cash position of approximately $11.8 million.

*  *  *

ATLS will be discussing its second quarter 2015 results on an investor call with management on Friday, August 7, 2015 at 9:00 am Eastern Time. Interested parties are invited to access the live webcast the investor call 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 Resource website and telephonically beginning at approximately 1:00 p.m. ET on August 7, 2015 by dialing (855) 859-2056, passcode: 87417314.

Atlas Energy Group, LLC (NYSE: ATLS) is a limited liability company which owns the following interests: all of the general partner interest, incentive distribution rights and an approximate 25% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P.; a general partner interest, incentive distribution rights and limited partner interests in Atlas Growth Partners, L.P.; and a general partner interest in Lightfoot Capital Partners, an entity that invests directly in energy-related businesses and assets. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.

Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration & production master limited partnership which owns an interest in over 14,500 producing natural gas and oil wells, located primarily in Appalachia, the Eagle Ford Shale (TX), the Barnett Shale (TX), the Mississippi Lime (OK), the Raton Basin (NM), the Black Warrior Basin (AL), the Arkoma Basin (OK) and the Rangely Field in Colorado. ARP is also the largest sponsor of natural gas and oil investment partnerships in the U.S. For more information, please visit ARP's website at www.atlasresourcepartners.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.

Cautionary Note Regarding Forward-Looking Statements

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

 

ATLAS ENERGY GROUP, LLC AND SUBSIDIARIES

COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per unit data)

 

Three Months Ended

Six Months Ended

June 30,

June 30,

Revenues:

2015

2014

2015

2014

      Gas and oil production

$        99,077

$     110,694

$      205,637

$     211,519

      Well construction and completion

16,956

16,336

40,611

65,713

      Gathering and processing

2,177

3,758

4,361

8,226

      Administration and oversight

547

4,166

1,806

5,895

      Well services

6,102

6,365

12,726

11,844

      Gain (loss) on mark-to-market derivatives

(26,896)

78,689

  Other, net

284

285

216

554

          Total revenues

98,247

141,604

344,046

303,751

Costs and expenses:

      Gas and oil production

43,619

43,828

89,608

82,586

      Well construction and completion

14,745

14,206

35,315

57,142

      Gathering and processing

2,516

4,273

4,933

8,686

      Well services

2,139

2,426

4,337

4,908

      General and administrative

18,405

24,797

60,333

46,188

  Depreciation, depletion and amortization

43,276

60,406

87,732

112,445

          Total costs and expenses

124,700

149,936

282,258

311,955

Operating income (loss)

(26,453)

(8,332)

61,788

(8,204)

Gain (loss) on asset sales and disposal

97

12

86

(1,591)

Interest expense

(33,187)

(16,074)

(67,938)

(32,051)

Net loss

(59,543)

(24,394)

(6,064)

(41,846)

(Income) loss attributable to non-controlling interests

38,745

18,383

(19,558)

28,691

Net loss attributable to unitholders'/owner's interests

$       (20,798)

$        (6,011)

$       (25,622)

$      (13,155)

Allocation of net loss attributable to unitholders'/owner's interests:

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

$                —

$        (6,011)

$      (10,475)

$      (13,155)

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

(20,798)

(15,147)

Net loss attributable to unitholders' /owner's interests

$       (20,798)

$        (6,011)

$       (25,622)

$      (13,155)

Net loss attributable to unitholders per common unit:

Basic

$          (0.80)

$                —

$          (0.58)

$                —

Diluted

$          (0.80)

$                —

$          (0.58)

$                —

Weighted average common units outstanding:

Basic

26,011

26,011

Diluted

26,011

26,011

 

 

 

ATLAS ENERGY GROUP, LLC AND SUBSIDIARIES

COMBINED CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

June 30,

December 31,

ASSETS

2015

2014

Current assets:

      Cash and cash equivalents

$             40,077

$             58,358

      Accounts receivable

90,489

115,290

      Advances to affiliates

4,389

      Current portion of derivative asset

114,740

144,259

      Subscriptions receivable

34,675

32,398

      Prepaid expenses and other

25,016

26,789

          Total current assets

304,997

381,483

Property, plant and equipment, net

2,392,656

2,419,289

Intangible assets, net

574

691

Goodwill, net

13,639

13,639

Long-term derivative asset

150,180

130,602

Other assets, net

82,792

80,611

$        2,944,838

$        3,026,315

LIABILITIES AND UNITHOLDERS'/OWNER'S EQUITY

Current liabilities:

      Current portion of long-term debt

$             77,371

$               1,500

      Accounts payable

110,789

123,670

      Liabilities associated with drilling contracts

40,611

      Accrued interest

26,312

26,479

      Accrued well drilling and completion costs

37,368

92,910

      Accrued liabilities

80,740

170,786

          Total current liabilities

332,580

455,956

Long-term debt, less current portion

1,491,612

1,541,085

Asset retirement obligations and other

120,287

114,059

Commitments and contingencies

Unitholders'/owner's equity:

      Common unitholders' equity

105,649

      Series A preferred equity

38,999

      Owner's equity

147,308

      Accumulated other comprehensive income

32,626

54,008

177,274

201,316

      Non-controlling interests

823,085

713,899

Total unitholders'/owner's equity

1,000,359

915,215

$         2,944,838

$         3,026,315

 

 

ATLAS ENERGY GROUP, LLC

Financial and Operating Highlights

(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Net loss attributable to unitholders per common unit - basic

$           (0.80)

$             —

$       (0.58)

$             —

Production volume: (1)(2)

  ATLAS GROWTH:

Natural gas (Mcfd)

481

939

604

597

Oil (Bpd)

320

200

405

125

Natural gas liquids (Bpd)

62

118

81

75

Total (Mcfed)

2,773

2,847

3,516

1,800

  ATLAS RESOURCE:

Natural gas (Mcfd)

219,844

238,375

223,571

233,186

Oil (Bpd)

5,293

2,084

5,412

1,827

Natural gas liquids (Bpd)

3,194

3,689

3,340

3,556

Total (Mcfed)

270,761

273,014

276,083

265,488

  TOTAL:

Natural gas (Mcfd)

220,325

239,314

224,175

233,783

Oil (Bpd)

5,613

2,284

5,817

1,953

Natural gas liquids (Bpd)

3,256

3,808

3,421

3,631

Total (Mcfed)

273,534

275,861

279,599

267,288

Average realized sales prices:(2)

  ATLAS GROWTH:

Natural gas (per Mcf)

$          2.61

$          4.29

$          2.66

$       4.42

Oil (per Bbl) (4)

$        56.01

$        96.53

$        49.79

$     93.77

Natural gas liquids (per Bbl)

$       12.76

$       31.13

$       13.06

$     30.75

  ATLAS RESOURCE:

Natural gas (per Mcf) (3)

$          3.33

$          3.79

$          3.46

$       3.92

Oil (per Bbl)(4)

$        83.19

$        90.66

$        81.98

$     89.12

Natural gas liquids (per Bbl) (5)

$       22.58

$       27.60

$       22.53

$     29.57

Production costs per Mcfe:(2)(6)

  ATLAS GROWTH:

Lease operating expenses per Mcfe

$          1.47

$          2.22

$          1.15

$          2.39

Production taxes per Mcfe

0.36

0.50

0.33

0.49

Transportation and compression expenses per Mcfe

0.09

0.05

Total production costs per Mcfe

$          1.92

$          2.72

$          1.53

$          2.88

  ATLAS RESOURCE:

Lease operating expenses per Mcfe

$          1.36

$          1.22

$          1.36

$          1.19

Production taxes per Mcfe

0.16

0.24

0.20

0.26

Transportation and compression expenses per Mcfe

0.24

0.27

0.24

0.28

Total production costs per Mcfe

$          1.77

$          1.73

$          1.79

$          1.73

  TOTAL:

Lease operating expenses per Mcfe

$          1.37

$          1.23

$          1.36

$          1.20

Production taxes per Mcfe

0.17

0.25

0.20

0.26

Transportation and compression expenses per Mcfe

0.24

0.26

0.23

0.28

Total production costs per Mcfe

$          1.77

$          1.74

$          1.79

$          1.74

(1)  

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

(2)  

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

(3)  

ARP's average sales prices for natural gas before the effects of financial hedging were $2.14 per Mcf and $4.13 per Mcf for the three months ended June 30, 2015 and 2014, respectively, and $2.34 per Mcf and $4.39 per Mcf for the six months ended June 30, 2015 and 2014, respectively. ARP's amounts exclude the impact of subordination of ARP's production revenues to investor partners within its investor partnerships. Including the effects of this subordination, ARP's average natural gas sales prices were $3.28 per Mcf ($2.09 per Mcf before the effects of financial hedging) and $3.77 per Mcf ($4.12 per Mcf before the effects of financial hedging) for the three months ended June 30, 2015 and 2014, respectively, and $3.40 per Mcf ($2.29 per Mcf before the effects of financial hedging) and $3.79 per Mcf ($4.26 per Mcf before the effects of financial hedging) for the six months ended June 30, 2015 and 2014, respectively.

(4)  

AGP's average sales price for oil before the effects of financial hedging was $55.84 per barrel and $96.53 per barrel for the three months ended June 30, 2015 and 2014, respectively, and $49.72 per barrel and $93.77 per barrel for the six months ended June 30, 2015 and 2014, respectively. ARP's average sales prices for oil before the effects of financial hedging were $53.35 per barrel and $98.95 per barrel for the three months ended June 30, 2015 and 2014, respectively, and $48.32 per barrel and $96.49 per barrel for the six months ended June 30, 2015 and 2014, respectively.

(5)  

ARP's average sales prices for natural gas liquids before the effects of financial hedging were $13.78 per barrel and $28.93 per barrel for the three months ended June 30, 2015 and 2014, respectively, and $13.95 per barrel and $32.15 per barrel for the six months ended June 30, 2015 and 2014, respectively.

(6)  

Production costs include labor to operate the wells and related equipment, repairs and maintenance, materials and supplies, property taxes, severance taxes, insurance, production overhead and transportation and compression expenses. These amounts exclude the effects of ARP's proportionate share of lease operating expenses associated with subordination of production revenue to investor partners within ARP's investor partnerships. Including the effects of these costs, ARP's lease operating expenses per Mcfe were $1.34 per Mcfe ($1.75 per Mcfe for total production costs) and $1.23 per Mcfe ($1.74 per Mcfe for total production costs) for the three months ended June 30, 2015 and 2014, respectively, and $1.34 per Mcfe ($1.77 per Mcfe for total production costs) and $1.16 per Mcfe ($1.70 per Mcfe for total production costs) for the six months ended June 30, 2015 and 2014, respectively. Including the effects of these costs, total lease operating expenses per Mcfe were $1.34 per Mcfe ($1.75 per Mcfe for total production costs) and $1.24 per Mcfe ($1.75 per Mcfe for total production costs) for the three months ended June 30, 2015 and 2014, respectively, and $1.33 per Mcfe ($1.77 per Mcfe for total production costs) and $1.17 per Mcfe ($1.71 per Mcfe for total production costs) for the six months ended June 30, 2015 and 2014, respectively.

 

                                                                                                                                                                                                                                                                                                                                                                                                                                                

ATLAS ENERGY GROUP, LLC

Financial Information

(unaudited; in thousands except per unit amounts)

Three Months Ended

Six Months Ended

June 30,

June 30

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

2015

2014

2015

2014

Net loss

$       (59,543)

$     (24,394)

$       (6,064)

$ (41,846)

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

 

 

(14,871)

 

(4,291)

 

(27,121)

Atlas Resource net (income) loss attributable to unitholders

10,162

2,044

(15,017)

3,045

Atlas Resource cash distributions earned by ATLS(3)

9,373

18,347

18,707

35,844

Atlas Growth net (income) loss attributable to unitholders

(50)

83

14

338

Atlas Growth cash distributions earned by ATLS(3)

88

43

160

82

Non-recurring spinoff and acquisition costs

17,174

77

Amortization of deferred finance costs and predecessor

    Term Loan interest expense

 

6,165

 

309

 

14,716

 

618

Non-cash stock compensation expense

926

946

Gain on asset sales and disposal

(3)

(3)

Preferred unit distributions

(1,004)

(1,337)

Other non-cash adjustments

127

59

684

275

(Income) loss attributable to non-controlling interests

38,745

18,383

(19,558)

28,691

Distributable Cash Flow attributable to unitholders(1)

$          4,989

$            —

$      6,134

$         —

Supplemental Adjusted EBITDA and Distributable Cash Flow Summary:

Atlas Resource Cash Distributions Earned(3):

Limited Partner Units

$          8,723

$        14,412

$        17,449

$   28,745

Series A Preferred Units (2%)

650

1,060

1,258

1,929

Incentive Distribution Rights

2,875

5,170

Total Atlas Resource Cash Distributions Earned(3)

9,373

18,347

18,707

35,844

per limited partner unit

$            0.325

$            0.583

$            0.650

$     1.163

Atlas Growth Cash Distributions Earned(3)

88

43

160

82

Total Cash Distributions Earned

9,461

18,390

18,867

35,926

Cash general and administrative expenses(4)

(1,996)

(1,416)

(5,361)

(4,660)

Other, net

834

399

1,565

837

Adjusted EBITDA(1)

8,299

17,373

15,071

32,103

Cash interest expense(5)

(2,306)

(2,502)

(3,309)

(4,982)

Preferred unit distributions

(1,004)

(1,337)

Distributable Cash Flow(1)

$          4,989

$        14,871

$        10,425

$   27,121

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

 

 

(14,871)

 

(4,291)

 

(27,121)

Distributable Cash Flow attributable to unitholders(1)

$          4,989

$               —

$          6,134

$          —

(1)

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

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

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

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

ATLS defines Adjusted EBITDA as EBITDA plus the following adjustments:

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

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

  • Cash interest expense; and
  • Maintenance capital expenditures.

(2)

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

(3)

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

(4)

Excludes non-cash stock compensation expense and certain non-recurring spinoff costs and acquisition and related costs.

(5)

Excludes non-cash amortization of deferred financing costs.

 

 

 

ATLAS ENERGY GROUP, LLC

CAPITALIZATION INFORMATION

(unaudited; in thousands)

June 30, 2015

Atlas

Atlas

Energy

Resource

Consolidated

Total debt

$        77,371

$  1,491,612

$     1,568,983

Less:  Cash

(39,470)

(607)

(40,077)

Total net debt

37,901

1,491,005

1,528,906

Unitholders' equity

314,446

924,301

      1,000,359(1)

Total capitalization

$        352,347

$2,415,306

$    2,529,265

Ratio of net debt to capitalization

0.11x

(1)        Net of eliminated amounts.

 

December 31, 2014

Atlas

Atlas

Energy

Resource

Consolidated

Total debt

$        148,125

$1,394,460

$   1,542,585

Less:  Cash

(43,111)

(15,247)

(58,358)

Total net debt

105,014

1,379,213

1,484,227

Owner's equity

267,637

947,537

      915,215(2)

Total capitalization

$        372,651

$2,326,750

$    2,399,442

Ratio of net debt to capitalization

0.28x

(2)        Net of eliminated amounts.

 

ATLAS ENERGY GROUP, LLC

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended June 30, 2015

Atlas

Atlas

Energy

Resource

Eliminations

Consolidated

Revenues:

      Gas and oil production

$          1,817

$        97,260

$                 −

$        99,077

      Well construction and completion

16,956

16,956

      Gathering and processing

2,177

2,177

      Administration and oversight

547

547

      Well services

6,102

6,102

      Gain (loss) on mark-to-market derivatives

48

(26,944)

(26,896)

   Other, net

257

27

284

          Total revenues

2,122

96,125

98,247

Costs and expenses:

      Gas and oil production

484

43,135

43,619

      Well construction and completion

14,745

14,745

      Gathering and processing

2,516

2,516

      Well services

2,139

2,139

      General and administrative

5,118

13,287

18,405

         Depreciation, depletion and amortization

782

42,494

43,276

          Total costs and expenses

6,384

118,316

124,700

Operating loss

(4,262)

(22,191)

(26,453)

Gain on asset sales and disposal

97

97

Interest expense

(8,471)

(24,716)

(33,187)

Net loss

(12,733)

(46,810)

(59,543)

  Loss attributable to non-controlling interests

 

 

 

38,745

 

38,745

Net loss attributable to unitholders

$       (12,733)

$       (46,810)

$        38,745

$       (20,798)

 

 

ATLAS ENERGY GROUP, LLC

CONSOLIDATING STATEMENTS OF OPERATIONS

 (unaudited; in thousands)

Three Months Ended June 30, 2014

 

Atlas

Atlas

Energy

Resource

Eliminations

Consolidated

Revenues:

      Gas and oil production

$          2,457

$      108,237

$                 −

$      110,694

      Well construction and completion

16,336

16,336

      Gathering and processing

3,758

3,758

      Administration and oversight

4,166

4,166

      Well services

6,365

6,365

   Other, net

250

35

285

          Total revenues

2,707

138,897

141,604

Costs and expenses:

      Gas and oil production

706

43,122

43,828

      Well construction and completion

14,206

14,206

      Gathering and processing

4,273

4,273

      Well services

2,426

2,426

      General and administrative

3,482

21,315

24,797

   Depreciation, depletion and amortization

726

59,680

60,406

          Total costs and expenses

4,914

145,022

149,936

Operating loss

(2,207)

(6,125)

(8,332)

Gain on asset sales and disposal

3

9

12

Interest expense

(2,811)

(13,263)

(16,074)

Net loss

(5,015)

(19,379)

(24,394)

  Loss attributable to non-controlling interests

 

 

 

18,383

 

18,383

Net loss attributable to owner

$         (5,015)

$       (19,379)

$        18,383

$         (6,011)

 

 

ATLAS ENERGY GROUP, LLC

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Six Months Ended June 30, 2015

 

Atlas

Atlas

Energy

Resource

Eliminations

Consolidated

Revenues:

      Gas and oil production

$          4,128

$      201,509

$                 −

$      205,637

      Well construction and completion

40,611

40,611

      Gathering and processing

4,361

4,361

      Administration and oversight

1,806

1,806

      Well services

12,726

12,726

      Gain on mark-to-market derivatives

48

78,641

78,689

   Other, net

156

60

216

          Total revenues

4,332

339,714

344,046

Costs and expenses:

      Gas and oil production

975

88,633

89,608

      Well construction and completion

35,315

35,315

      Gathering and processing

4,933

4,933

      Well services

4,337

4,337

      General and administrative

29,911

30,422

60,333

        Depreciation, depletion and amortization

2,247

85,485

87,732

          Total costs and expenses

33,133

249,125

282,258

Operating income (loss)

(28,801)

90,589

61,788

Gain on asset sales and disposal

86

86

Interest expense

(18,025)

(49,913)

(67,938)

Net income (loss)

(46,826)

40,762

(6,064)

  Income attributable to non-controlling interests

(19,558)

(19,558)

Net income (loss) attributable to unitholders/owner

 

$       (46,826)

 

$        40,762

 

$       (19,558)

 

$       (25,622)

 

ATLAS ENERGY GROUP, LLC

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Six Months Ended June 30, 2014

Atlas

Atlas

Energy

Resource

Eliminations

Consolidated

Revenues:

      Gas and oil production

$         3,025

$      208,494

$                 −

$      211,519

      Well construction and completion

65,713

65,713

      Gathering and processing

8,226

8,226

      Administration and oversight

5,895

5,895

      Well services

11,844

11,844

  Other, net

472

82

554

          Total revenues

3,497

300,254

303,751

Costs and expenses:

      Gas and oil production

939

81,647

82,586

      Well construction and completion

57,142

57,142

      Gathering and processing

8,686

8,686

      Well services

4,908

4,908

      General and administrative

8,418

37,770

46,188

  Depreciation, depletion and amortization

946

111,499

112,445

          Total costs and expenses

10,303

301,652

311,955

Operating loss

(6,806)

(1,398)

(8,204)

Gain (loss) on asset sales and disposal

3

(1,594)

(1,591)

Interest expense

(5,600)

(26,451)

(32,051)

Net loss

(12,403)

(29,443)

(41,846)

  Loss attributable to non-controlling interests

28,691

28,691

Net loss attributable to owner

$       (12,403)

$       (29,443)

$        28,691

$       (13,155)

 

 

ATLAS ENERGY GROUP, LLC

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

June 30, 2015

Atlas

Atlas

ASSETS

Energy

Resource

Eliminations

Consolidated

Current assets:

      Cash and cash equivalents

$        39,470

$            607

$                 −

$          40,077

      Accounts receivable

4,451

89,169

(3,131)

90,489

      Receivable from (advances from)

          affiliates

 

(24,856)

 

24,856

 

 

      Current portion of derivative asset

30

114,710

114,740

      Subscriptions receivable

34,675

34,675

      Prepaid expenses and other

695

24,321

25,016

          Total current assets

54,465

253,663

(3,131)

304,997

Property, plant and equipment, net

165,839

2,226,817

2,392,656

Intangible assets, net

574

574

Goodwill, net

13,639

13,639

Long-term derivative asset

18

150,162

150,180

Investment in subsidiaries

241,519

(241,519)

Other assets, net

23,422

56,239

3,131

82,792

$      485,263

$  2,701,094

$    (241,519)

$   2,944,838

LIABILITIES AND UNITHOLDERS' EQUITY

Current liabilities:

      Current portion of long-term debt

$        77,371

$                −

$                 −

$          77,371

      Accounts payable

33,186

77,603

110,789

      Accrued interest

449

25,863

26,312

      Accrued well drilling and completion

          costs

 

11,803

 

25,565

 

 

37,368

      Accrued liabilities

42,143

41,728

(3,131)

80,740

          Total current liabilities

164,952

170,759

(3,131)

332,580

Long-term debt, less current portion

1,491,612

1,491,612

Asset retirement obligations and other

5,865

114,422

120,287

Unitholders' equity:

      Common unitholders' equity

105,649

105,649

      Series A preferred equity

38,999

38,999

      Partners' capital

785,951

(785,951)

      Accumulated other comprehensive

          income

 

32,626

 

138,350

 

(138,350)

 

32,626

177,274

924,301

(924,301)

177,274

      Non-controlling interests

137,172

685,913

823,085

          Total unitholders' equity

314,446

924,301

(238,388)

1,000,359

$      485,263

$  2,701,094

$    (241,519)

$     2,944,838

 

 

ATLAS ENERGY GROUP, LLC

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

December 31, 2014

Atlas

Atlas

ASSETS

Energy

Resource

Eliminations

Consolidated

Current assets:

      Cash and cash equivalents

$       43,111

$        15,247

$                 −

$          58,358

      Accounts receivable

7,007

114,520

(6,237)

115,290

      Receivable from (advances to)

          affiliates

 

6,638

 

(2,249)

 

 

4,389

      Current portion of derivative asset

144,259

144,259

      Subscriptions receivable

32,398

32,398

      Prepaid expenses and other

493

26,296

26,789

          Total current assets

57,249

330,471

(6,237)

381,483

Property, plant and equipment, net

155,469

2,263,820

2,419,289

Intangible assets, net

691

691

Goodwill, net

13,639

13,639

Long-term derivative asset

130,602

130,602

Investment in subsidiaries

306,196

(306,196)

Other assets, net

24,293

50,081

6,237

80,611

$     543,207

$   2,789,304

$    (306,196)

$   3,026,315

LIABILITIES AND OWNER'S EQUITY

Current liabilities:

      Current portion of long-term debt

$         1,500

$                 −

$                 −

$            1,500

      Accounts payable

12,472

111,198

123,670

      Liabilities associated with drilling

          contracts

 

 

40,611

 

 

40,611

      Accrued interest

27

26,452

26,479

      Accrued well drilling and completion

          costs

 

12,506

 

80,404

 

 

92,910

      Accrued liabilities

98,364

78,659

(6,237)

170,786

          Total current liabilities

124,869

337,324

(6,237)

455,956

Long-term debt, less current portion

146,625

1,394,460

1,541,085

Asset retirement obligations and other

4,076

109,983

114,059

Owner's equity:

      Owner's equity

147,308

147,308

      Partners' capital

756,066

(756,066)

      Accumulated other comprehensive

          income

 

54,008

 

191,471

 

(191,471)

 

54,008

201,316

947,537

(947,537)

201,316

      Non-controlling interests

66,321

647,578

713,899

          Total owner's equity

267,637

947,537

(299,959)

915,215

$     543,207

$   2,789,304

$    (306,196)

$     3,026,315

ATLAS ENERGY GROUP, LLC

Ownership Interests Summary

Atlas Energy Ownership Interests as of August 6, 2015:

Amount

Overall

Ownership

Interest

Percentage

ATLAS RESOURCE:

      General partner interest

100%

2.0%

      Common units

20,962,485

21.2%

      Preferred units

3,749,986

3.8%

      Incentive distribution rights

100%

N/A

            Total Atlas Energy ownership interests in Atlas Resource

27.0%

ATLAS GROWTH:

      General partner interest

80.0%

2.0%

      Common units

500,010

2.1%

      Incentive distribution rights

80.0%

   N/A

            Total Atlas Energy ownership interests in Atlas

Growth

4.1%

LIGHTFOOT CAPITAL PARTNERS, GP LLC:

      Approximate general partner ownership interest

15.9%

      Approximate limited partner ownership interest

12.0%

 

CONTACT:

Brian J. Begley

Vice President - Investor Relations

Atlas Energy Group, LLC

(877) 280-2857

(215) 405-2718 (fax)

 

SOURCE Atlas Energy Group, LLC



RELATED LINKS

http://www.atlasenergy.com