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 November 9, 2015 - 5:01 PM EST
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Atlas Energy Group, LLC Reports Operating And Financial Results For The Third Quarter 2015

PITTSBURGH, Nov. 9, 2015 /PRNewswire/ -- Atlas Energy Group, LLC (NYSE: ATLS) ("Atlas Energy", the "Company" or "ATLS") today reported operating and financial results for the third quarter 2015.

  • Atlas Energy's Distributable Cash Flow, a non-GAAP measure, was approximately $6.0 million(1), or $0.23 per common unit, in the third quarter 2015, compared to $5.0 million, or $0.19 per common unit, in the second quarter 2015. The increase in Distributable Cash Flow was in part due to a higher amount of cash received from the Company's investment in Lightfoot Capital Partners due to the distribution of funds from the prior sale of certain assets.
  • 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 third quarter 2015 at a distribution coverage ratio of approximately 0.9x. On October 28, 2015, ARP announced the September 2015 monthly distribution of $0.1083 per common unit ($1.30 per unit on an annualized basis), which will be paid on November 13, 2015 to unitholders of record as of November 9, 2015.
  • ATLS received approximately $0.6 million in management fees and cash distributions during the third quarter 2015 from its E&P development subsidiary, Atlas Growth Partners, L.P. ("AGP"). AGP raised approximately $233 million in investor capital in its most recent fundraising which closed on June 30, 2015.
  • ATLS received $1.4 million in cash distributions in the third quarter 2015 from Arc Logistics Partners, LP (NYSE: ARCX), a master limited partnership of which approximately 16% of its general partner is owned by ATLS through the Company's interest in Lightfoot Capital Partners. In October 2015, ARCX announced a quarterly cash distribution of $0.44 per common unit for the third quarter 2015, a 3.5% increase from the second quarter 2015 and 7.5% higher than the prior year comparable quarter.
  • On a GAAP basis, net loss was $582.3 million for the third quarter 2015, compared with a loss of $59.5 million for the second quarter 2015 and a net loss of $4.3 million in the prior year third quarter.  Net loss in the current period was principally due to non-cash expenses at ARP, specifically an asset impairment charge on certain of ARP's oil and gas properties due to recent declines in forward commodity prices, partially offset by the mark-to-market gains recognized in the current quarter from ARP's financial hedge positions.

ATLS owns 100% of ARP's general partner Class A units and incentive distribution rights, and an approximate 23% 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 third quarter 2015 earnings release for additional details on its financial results.

ATLS Term Loan Refinancing

On August 10, 2015, ATLS entered into an agreement for a new term loan facility maturing in August 2020. The new facility refinanced the Company's existing term loan and had an initial balance of $82.7 million at an interest rate of LIBOR (floor of 1%) plus 7%. At September 30, 2015, $82.7 million was outstanding under the Term Loan Facility.

ARP's Third Quarter 2015 Highlights

  • ARP's average net daily production for the third quarter 2015 was 264.2 million cubic feet equivalents per day ("Mmcfed"), as compared to 270.8 Mmcfed for the second quarter 2015. ARP's third quarter 2015 production was comprised of 82% natural gas, 11% oil and 7% natural gas liquids ("NGL"). ARP connected two Mississippi Lime wells during the third quarter, and now operates 27 wells in the Eagle Ford shale. ARP is currently connecting additional wells on its Eagle Ford position and expects oil volumes to increase into 2016 as a result of its activity.
  • ARP's net realized price for natural gas including the effect of hedge positions was $3.30 per thousand cubic feet ("mcf") for the third quarter 2015, compared to $3.33/mcf for the second quarter 2015. Net realized oil prices including the effect of hedge positions averaged $88.42 per barrel ("bbl") for the third quarter 2015, compared to $83.19/bbl for the second quarter 2015. ARP was hedged approximately 71% on its natural gas production and approximately 100% on its oil production in the third quarter 2015.
  • Lease operating expenses decreased 6% from the second quarter 2015 to $1.30/mcf, and overall production costs of $1.74/mcf in the third quarter 2015 were 22% lower than the prior year comparable quarter. The decrease in expenses is due to ARP's ongoing production cost-reduction efforts, namely focused on water disposal, compression and fuel costs.
  • Investment partnership margin was approximately $12.0 million in the third quarter 2015, compared with $6.7 million for the second quarter 2015. The increase in investment partnership margin was due to increased deployment of partnership capital during the current quarter, which generated higher fee income, specifically Administration and Oversight Fees realized from the drilling of new investment program wells.

AGP's Third Quarter 2015 Highlights

AGP had net daily production of over 6,400 Mmcfed in the third quarter 2015, compared to average daily net production of approximately 2,800 Mmcfed in the second quarter 2015. AGP connected two additional wells in the Eagle Ford shale during the current quarter.

Corporate Expenses

  • Cash general and administrative expense, excluding amounts attributable to AGP and ARP, was $2.6 million for the third quarter 2015, compared to $2.0 million for the second quarter 2015. The increase in expense from the prior quarter was due primarily to the timing of certain employee benefit costs. Please refer to the consolidating statements of operations provided in the financial tables of this release.
  • Cash interest expense was $1.8 million for the third quarter 2015, compared to $2.3 million for the second quarter 2015. ATLS had approximately $82.7 million of debt on its consolidated balance sheet at September 30, 2015, and a cash position of approximately $14.3 million.

*  *  *

ATLS will be discussing its third quarter 2015 results on an investor call with management on Tuesday, November 10, 2015 at 9:00 a.m. 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 ARP website and telephonically beginning at approximately 1:00 p.m. ET on November 10, 2015 by dialing (855) 859-2056, passcode: 66843641.

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 23% 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' and its subsidiaries' 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' and its subsidiaries' 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.

(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.

 

CONTACT:


Brian J. Begley



Vice President - Investor Relations



Atlas Energy Group, LLC



(877) 280-2857



(215) 405-2718 (fax)

 

 

ATLAS ENERGY GROUP, LLC AND SUBSIDIARIES

COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS

 (unaudited; in thousands, except per unit data)






Three Months Ended


Nine Months Ended


September 30,


September 30,

Revenues:

2015


2014


2015


2014

      Gas and oil production

$        94,612


$     130,937


$      300,249


$     342,456

      Well construction and completion

23,054


61,204


63,665


126,917

      Gathering and processing

1,685


3,061


6,046


11,287

      Administration and oversight

5,495


6,177


7,301


12,072

      Well services

5,842


6,597


18,568


18,441

      Gain on mark-to-market derivatives

131,777



210,466


Other, net

369


613


585


1,167

          Total revenues

262,834


208,589


606,880


512,340









Costs and expenses:








      Gas and oil production

42,300


52,004


131,908


134,590

      Well construction and completion

20,046


53,221


55,361


110,363

      Gathering and processing

2,473


3,214


7,406


11,900

      Well services

2,398


2,617


6,735


7,525

      General and administrative

21,704


17,299


82,037


63,487

Depreciation, depletion and amortization

43,311


65,068


131,043


177,513

Asset impairment

679,537



679,537


          Total costs and expenses

811,769


193,423


1,094,027


505,378









Operating income (loss)

(548,935)


15,166


(487,147)


6,962









Loss on asset sales and disposal

(362)


(92)


(276)


(1,683)

Loss on extinguishment of debt

(4,726)



(4,726)


Interest expense

(28,290)


(19,423)


(96,228)


(51,474)









Net loss

(582,313)


(4,349)


(588,377)


(46,195)

Preferred unitholders' dividends

(1,009)



(2,346)


Loss attributable to non-controlling interests

439,969


5,137


420,411


33,828

Net income (loss) attributable to unitholders'/owner's interests

$     (143,353)


$            788


$     (170,312)


$     (12,367)









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





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

$                —


$            788


$      (10,475)


$     (12,367)

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

(143,353)



(159,837)


Net income (loss) attributable to unitholders' /owner's interests

$     (143,353)


$            788


$     (170,312)


$     (12,367)









Net income (loss) attributable to unitholders per common unit:





Basic

$          (5.51)


$              —


$          (6.15)


$             —

Diluted

$          (5.51)


$              —


$          (6.15)


$             —









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)








September 30,


December 31,

ASSETS


2015


2014

Current assets:





      Cash and cash equivalents


$             54,950


$             58,358

      Accounts receivable


91,706


115,290

      Advances to affiliates



4,389

      Current portion of derivative asset


147,021


144,259

      Subscriptions receivable


23,054


32,398

      Prepaid expenses and other


26,022


26,789

          Total current assets


342,753


381,483






Property, plant and equipment, net


1,659,358


2,419,289

Intangible assets, net


515


691

Goodwill, net


13,639


13,639

Long-term derivative asset


206,142


130,602

Other assets, net


83,454


80,611



$        2,305,861


$        3,026,315






LIABILITIES AND UNITHOLDERS'/OWNER'S EQUITY










Current liabilities:





      Current portion of long-term debt


$                    —


$               1,500

      Accounts payable


85,792


123,670

      Liabilities associated with drilling contracts



40,611

      Accrued interest


11,428


26,479

      Accrued well drilling and completion costs


65,629


92,910

      Accrued liabilities


87,272


170,786

          Total current liabilities


250,121


455,956






Long-term debt, less current portion


1,587,747


1,541,085

Asset retirement obligations and other


122,982


114,059






Commitments and contingencies










Unitholders'/owner's equity:





      Common unitholders' equity


(34,624)


      Series A preferred equity


38,393


      Owner's equity



147,308

      Accumulated other comprehensive income


10,388


54,008



14,157


201,316

      Non-controlling interests


330,854


713,899

Total unitholders'/owner's equity


345,011


915,215



$         2,305,861


$         3,026,315

 

 

ATLAS ENERGY GROUP, LLC

Financial and Operating Highlights

(unaudited)






Three Months Ended


Nine Months Ended


September 30,


September 30,


2015


2014


2015


2014









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

$           (5.51)


$             —


$       (6.15)


$             —

















Production volume: (1)(2)








  ATLAS GROWTH:








Natural gas (Mcfd)

574


770


594


656

Oil (Bpd)

885


111


566


121

Natural gas liquids (Bpd)

91


104


84


85

Total (Mcfed)

6,426


2,058


4,497


1,887

  ATLAS RESOURCE:








Natural gas (Mcfd)

216,414


245,996


221,159


237,503

Oil (Bpd)

4,842


4,598


5,220


2,761

Natural gas liquids (Bpd)

3,121


4,048


3,266


3,722

Total (Mcfed)

264,196


297,876


272,077


276,403

  TOTAL:








Natural gas (Mcfd)

216,988


246,766


221,753


238,158

Oil (Bpd)

5,727


4,710


5,786


2,882

Natural gas liquids (Bpd)

3,212


4,152


3,350


3,807

Total (Mcfed)

270,623


299,934


276,574


278,290









Average realized sales prices:(2)








  ATLAS GROWTH:








Natural gas (per Mcf)

$          2.63


$          3.92


$          2.65


$       4.22

Oil (per Bbl) (4)

$        47.14


$        92.96


$        48.39


$     93.52

Natural gas liquids (per Bbl)

$       11.88


$       32.44


$       12.63


$     31.45

  ATLAS RESOURCE:








Natural gas (per Mcf) (3)

$          3.30


$          3.56


$          3.41


$       3.79

Oil (per Bbl)(4)

$        88.42


$        90.18


$        83.99


$     89.71

Natural gas liquids (per Bbl) (5)

$       21.42


$        32.21


$       22.17


$     30.54









Production costs per Mcfe:(2)(6)








  ATLAS GROWTH:








Lease operating expenses per Mcfe

$          0.81


$          2.71


$          0.99


$          2.51

Production taxes per Mcfe

0.31


0.52


0.32


0.50

Transportation and compression expenses per Mcfe

0.07



0.06


Total production costs per Mcfe

$          1.20


$          3.24


$          1.37


$          3.01

  ATLAS RESOURCE:








Lease operating expenses per Mcfe

$          1.30


$          1.37


$          1.34


$          1.26

Production taxes per Mcfe

0.19


0.30


0.20


0.27

Transportation and compression expenses per Mcfe

0.24


0.23


0.24


0.26

Total production costs per Mcfe

$          1.74


$          1.89


$          1.78


$          1.79

  TOTAL:








Lease operating expenses per Mcfe

$          1.29


$          1.37


$          1.33


$          1.26

Production taxes per Mcfe

0.19


0.30


0.20


0.27

Transportation and compression expenses per Mcfe

0.24


0.23


0.23


0.26

Total production costs per Mcfe

$          1.72


$          1.90


$          1.77


$          1.80

















 

(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 $2.28 per Mcf and $3.48 per Mcf for the three months ended September 30, 2015 and 2014, respectively, and $2.32 per Mcf and $4.05 per Mcf for the nine months ended September 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 $3.25 per Mcf ($2.23 per Mcf before the effects of financial hedging) and $3.50 per Mcf ($3.43 per Mcf before the effects of financial hedging) for the three months ended September 30, 2015 and 2014, respectively, and $3.35 per Mcf ($2.27 per Mcf before the effects of financial hedging) and $3.69 per Mcf ($3.97 per Mcf before the effects of financial hedging) for the nine months ended September 30, 2015 and 2014, respectively.

(4)   AGP's average sales price for oil before the effects of financial hedging was $44.72 per barrel and $92.96 per barrel for the three months ended September 30, 2015 and 2014, respectively, and $47.09 per barrel and $93.52 per barrel for the nine months ended September 30, 2015 and 2014, respectively. ARP's average sales prices for oil before the effects of financial hedging were $43.25 per barrel and $91.08 per barrel for the three months ended September 30, 2015 and 2014, respectively, and $46.74 per barrel and $93.45 per barrel for the nine months ended September 30, 2015 and 2014, respectively.

(5)   ARP's average sales prices for natural gas liquids before the effects of financial hedging were $11.01 per barrel and $32.18 per barrel for the three months ended September 30, 2015 and 2014, respectively, and $13.00 per barrel and $32.16 per barrel for the nine months ended September 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 $1.28 per Mcfe ($1.71 per Mcfe for total production costs) and $1.35 per Mcfe ($1.88 per Mcfe for total production costs) for the three months ended September 30, 2015 and 2014, respectively, and $1.32 per Mcfe ($1.75 per Mcfe for total production costs) and $1.23 per Mcfe ($1.76 per Mcfe for total production costs) for the nine months ended September 30, 2015 and 2014, respectively. Including the effects of these costs, total lease operating expenses per Mcfe were $1.27 per Mcfe ($1.70 per Mcfe for total production costs) and $1.36 per Mcfe ($1.88 per Mcfe for total production costs) for the three months ended September 30, 2015 and 2014, respectively, and $1.31 per Mcfe ($1.75 per Mcfe for total production costs) and $1.24 per Mcfe ($1.77 per Mcfe for total production costs) for the nine months ended September 30, 2015 and 2014, respectively.

 

                                                                                                                                                                                                                                                                                                                                                                                                                                                


ATLAS ENERGY GROUP, LLC

Financial Information

(unaudited; in thousands except per unit amounts)






Three Months Ended


Nine Months Ended


September 30,


September 30

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

2015


2014


2015


2014

Net loss

$     (582,313)


$       (4,349)


$   (588,377)


$ (46,195)

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

 


 

(15,794)


 

(4,291)


 

(42,915)

Atlas Resource net (income) loss attributable to unitholders

129,501


(4,371)


114,484


(1,326)

Atlas Resource cash distributions earned by ATLS(3)

9,407


18,720


28,114


54,564

Atlas Growth net (income) loss attributable to unitholders

217


147


231


485

Atlas Growth cash distributions earned by ATLS(3)

127


51


287


133

Non-recurring spinoff and acquisition costs

651



17,825


77

Amortization of deferred finance costs and predecessor

    Term Loan interest expense

 

1,308


 

323


 

16,024


 

941

Non-cash stock compensation expense

2,375



3,321


Gain on asset sales and disposal




(3)

Loss on extinguishment of debt

4,726



4,726


Preferred unit distributions

(1,009)



(2,346)


Other non-cash adjustments

1,052


136


1,736


411

Loss attributable to non-controlling interests

439,969


5,137


420,411


33,828

Distributable Cash Flow attributable to unitholders(1)

$          6,011


$            —


$     12,145


$         —









Supplemental Adjusted EBITDA and Distributable Cash Flow Summary:





Atlas Resource Cash Distributions Earned(3):








Limited Partner Units

$          8,723


$        14,580


$        26,172


$   43,325

Series A Preferred Units (2%)

684


1,074


1,942


3,003

Incentive Distribution Rights


3,066



8,236

Total Atlas Resource Cash Distributions Earned(3)

9,407


18,720


28,114


54,564

per limited partner unit

$            0.325


$            0.590


$            0.975


$     1.753









Atlas Growth Cash Distributions Earned(3)

127


51


287


133









Total Cash Distributions Earned

9,534


18,771


28,401


54,697









Cash general and administrative expenses(4)

(2,601)


(1,103)


(7,962)


(5,763)

Other, net

1,863


649


3,428


1,486

Adjusted EBITDA(1)

8,796


18,317


23,867


50,420

Cash interest expense(5)

(1,776)


(2,523)


(5,085)


(7,505)

Preferred unit distributions

(1,009)



(2,346)


Distributable Cash Flow(1)

$          6,011


$        15,794


$        16,436


$   42,915

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

 


 

(15,794)


 

(4,291)


 

(42,915)

Distributable Cash Flow attributable to unitholders(1)

$          6,011


$               —


$        12,145


$          —

























(1)

EBITDA and Distributable Cash Flow is relevant and useful, because they help 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)




September 30, 2015


Atlas


Atlas





Energy


Resource


Consolidated


Total debt

$        82,700


$  1,505,047


$     1,587,747


Less:  Cash

(52,532)


(2,418)


(54,950)


Total net debt

30,168


1,502,629


1,532,797









Unitholders' equity

164,689


244,877


      345,011(1)









Total capitalization

$        194,857


$1,747,506


$    1,877,808









Ratio of net debt to capitalization

0.15x













(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 September 30, 2015










Atlas


Atlas






Energy


Resource


Eliminations


Consolidated

Revenues:








      Gas and oil production

$          3,878


$        90,734


$                 −


$        94,612

      Well construction and completion


23,054



23,054

      Gathering and processing


1,685



1,685

      Administration and oversight


5,495



5,495

      Well services


5,842



5,842

      Gain on mark-to-market derivatives

712


131,065



131,777

Other, net

349


20



369

          Total revenues

4,939


257,895



262,834









Costs and expenses:








      Gas and oil production

709


41,591



42,300

      Well construction and completion


20,046



20,046

      Gathering and processing


2,473



2,473

      Well services


2,398



2,398

      General and administrative

7,726


13,978



21,704

      Depreciation, depletion and amortization

2,848


40,463



43,311


7,291


672,246



679,537

          Total costs and expenses

18,574


793,195



811,769









Operating loss

(13,635)


(535,300)



(548,935)









Loss on asset sales and disposal


(362)



(362)

Loss on extinguishment of debt

(4,726)




(4,726)

Interest expense

(3,098)


(25,192)



(28,290)









Net loss

(21,459)


(560,854)



(582,313)

Preferred unitholders' dividends

(1,009)




(1,009)

  Loss attributable to non-controlling interests.

 


 


 

439,969


 

439,969

Net loss attributable to unitholders

$       (22,468)


$     (560,854)


$      439,969


$     (143,353)









 

 

ATLAS ENERGY GROUP, LLC

COMBINED CONSOLIDATING STATEMENTS OF OPERATIONS

 (unaudited; in thousands)


Three Months Ended September 30, 2014










Atlas


Atlas






Energy


Resource


Eliminations


Consolidated

Revenues:








      Gas and oil production

$          1,538


$      129,399


$                 −


$      130,937

      Well construction and completion


61,204



61,204

      Gathering and processing


3,061



3,061

      Administration and oversight


6,177



6,177

      Well services


6,597



6,597

Other, net

352


261



613

          Total revenues

1,890


206,699



208,589









Costs and expenses:








      Gas and oil production

613


51,391



52,004

      Well construction and completion


53,221



53,221

      Gathering and processing


3,214



3,214

      Well services


2,617



2,617

      General and administrative

4,175


13,124



17,299

Depreciation, depletion and amortization

 

490


 

64,578


 


 

65,068

          Total costs and expenses

5,278


188,145



193,423









Operating income (loss)

(3,388)


18,554



15,166









Loss on asset sales and disposal


(92)



(92)

Interest expense

(2,846)


(16,577)



(19,423)









Net income (loss)

(6,234)


1,885



(4,349)

  Loss attributable to non-controlling interests.

 


 


 

5,137


 

5,137

Net income (loss) attributable to owner

$         (6,234)


$          1,885


$          5,137


$             788









 

 

ATLAS ENERGY GROUP, LLC

COMBINED CONSOLIDATING STATEMENTS OF OPERATIONS

 (unaudited; in thousands)


Nine Months Ended September 30, 2015










Atlas


Atlas






Energy


Resource


Eliminations


Consolidated

Revenues:








      Gas and oil production

$          8,006


$      292,243


$                 −


$      300,249

      Well construction and completion


63,665



63,665

      Gathering and processing


6,046



6,046

      Administration and oversight


7,301



7,301

      Well services


18,568



18,568

      Gain on mark-to-market derivatives

760


209,706



210,466

Other, net

505


80



585

          Total revenues

9,271


597,609



606,880









Costs and expenses:








      Gas and oil production

1,684


130,224



131,908

      Well construction and completion


55,361



55,361

      Gathering and processing


7,406



7,406

      Well services


6,735



6,735

      General and administrative

37,637


44,400



82,037

      Depreciation, depletion and amortization

5,095


125,948



131,043

      Asset impairment

7,291


672,246



679,537

          Total costs and expenses

51,707


1,042,320



1,094,027









Operating loss

(42,436)


(444,711)



(487,147)









Loss on asset sales and disposal


(276)



(276)

Loss on extinguishment of debt

(4,726)




(4,726)

Interest expense

(21,123)


(75,105)



(96,228)









Net loss

(68,285)


(520,092)



(588,377)

Preferred unitholders' dividends

(2,346)




(2,346)

  Loss attributable to non-controlling interests.

 


 


 

420,411


 

420,411

Net loss attributable to unitholders/owner

 

$       (70,631)


 

$     (520,092)


 

$      420,411


 

$     (170,312)









 

 

ATLAS ENERGY GROUP, LLC

COMBINED CONSOLIDATING STATEMENTS OF OPERATIONS

 (unaudited; in thousands)


Nine Months Ended September 30, 2014










Atlas


Atlas






Energy


Resource


Eliminations


Consolidated

Revenues:








      Gas and oil production

$         4,563


$      337,893


$                 −


$      342,456

      Well construction and completion


126,917



126,917

      Gathering and processing


11,287



11,287

      Administration and oversight


12,072



12,072

      Well services


18,441



18,441

Other, net

824


343



1,167

          Total revenues

5,387


506,953



512,340









Costs and expenses:








      Gas and oil production

1,552


133,038



134,590

      Well construction and completion


110,363



110,363

      Gathering and processing


11,900



11,900

      Well services


7,525



7,525

      General and administrative

12,593


50,894



63,487

Depreciation, depletion and amortization

 

1,436


 

176,077


 


 

177,513

          Total costs and expenses

15,581


489,797



505,378









Operating income (loss)

(10,194)


17,156



6,962









Gain (loss) on asset sales and disposal

3


(1,686)



(1,683)

Interest expense

(8,446)


(43,028)



(51,474)









Net loss

(18,637)


(27,558)



(46,195)

  Loss attributable to non-controlling interests

 


 


 

33,828


 

33,828

Net loss attributable to owner

$       (18,637)


$       (27,558)


$        33,828


$       (12,367)









 

 

ATLAS ENERGY GROUP, LLC

COMBINED CONDENSED CONSOLIDATING BALANCE SHEETS

 (unaudited; in thousands)

September 30, 2015










Atlas


Atlas





ASSETS

Energy


Resource


Eliminations


Consolidated

Current assets:








      Cash and cash equivalents

$        52,532


$         2,418


$                 −


$          54,950

      Accounts receivable

5,448


89,402


(3,144)


91,706

      Receivable from (advances from) affiliates

 

(1,178)


 

1,178


 


 

      Current portion of derivative asset

399


146,622



147,021

      Subscriptions receivable


23,054



23,054

      Prepaid expenses and other

615


25,407



26,022

          Total current assets

57,816


288,081


(3,144)


342,753









Property, plant and equipment, net

124,640


1,534,718



1,659,358

Intangible assets, net


515



515

Goodwill, net


13,639



13,639

Long-term derivative asset

163


205,979



206,142

Investment in subsidiaries

67,699



(67,699)


Other assets, net

26,484


53,826


3,144


83,454


$      276,802


$  2,096,758


$      (67,699)


$   2,305,861









LIABILITIES AND UNITHOLDERS' EQUITY













Current liabilities:








      Accounts payable

3,583


82,209



85,792

      Accrued interest

643


10,785



11,428

      Accrued well drilling and completion costs

 

9,329


 

56,300


 


 

65,629

      Accrued liabilities

9,965


80,451


(3,144)


87,272

          Total current liabilities

23,520


229,745


(3,144)


250,121









Long-term debt, less current portion

82,700


1,505,047



1,587,747

Asset retirement obligations and other

5,893


117,089



122,982









Unitholders' equity:








      Common unitholders' equity

(34,624)




(34,624)

      Series A preferred equity

38,393




38,393

      Partners' capital


198,475


(198,475)


      Accumulated other comprehensive income

 

10,388


 

46,402


 

(46,402)


 

10,388


14,157


244,877


(244,877)


14,157

      Non-controlling interests

150,532



180,322


330,854

          Total unitholders' equity

164,689


244,877


(64,555)


345,011


$      276,802


$  2,096,758


$      (67,699)


$     2,305,861

 

 


ATLAS ENERGY GROUP, LLC

COMBINED 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 November 9, 2015:

Amount


Overall

Ownership

Interest

Percentage





ATLAS RESOURCE:




      General partner interest

100%


2.0%

      Common units

20,962,485


19.8%

      Preferred units

3,749,986


3.5%

      Incentive distribution rights

100%


N/A

            Total Atlas Energy ownership interests in Atlas Resource



25.3%





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%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/atlas-energy-group-llc-reports-operating-and-financial-results-for-the-third-quarter-2015-300175212.html

SOURCE Atlas Energy Group, LLC


Source: PR Newswire (November 9, 2015 - 5:01 PM EST)

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