Atlas Energy Group, LLC Reports Operating and Financial Results for the First Quarter 2016
PHILADELPHIA, May 16, 2016 (GLOBE NEWSWIRE) -- Atlas Energy Group, LLC (OTCQX:ATLS) (“Atlas Energy”, the “Company” or “ATLS”) today reported operating and financial results for the first quarter 2016.
ATLS received approximately $0.6 million in management fees and cash distributions during the first quarter 2016 from its E&P development subsidiary, Atlas Growth Partners, L.P. (“AGP”). AGP recently had its Form S-1 for its continuous $1 billion public offering declared effective by the Securities and Exchange Commission on April 5, 2016.
ATLS received $0.5 million in cash distributions in the first quarter 2016 from Arc Logistics Partners, LP (NYSE:ARCX), a master limited partnership of which approximately 16% of its general partner interest and approximately 12% of its limited partner interest is owned by ATLS through the Company’s interest in Lightfoot Capital Partners. In April 2016, ARCX announced a quarterly cash distribution of $0.44 per common unit for the first quarter 2016, unchanged from the fourth quarter 2015.
Atlas Resource Partners, L.P. (NYSE:ARP), Atlas Energy’s E&P subsidiary, paid common unit cash distributions totaling approximately $0.025 per limited partner unit for the first quarter 2016. On May 5, 2016, ARP announced that the Board of Directors elected to suspend monthly common unit distributions, beginning with the month of March 2016, as well as Preferred Class C distributions, due to the continued lower commodity price environment.
Atlas Energy’s Distributable Cash Flow, a non-GAAP measure, was approximately $0.5 million(1), or $0.02 per common unit, in the first quarter 2016, compared to $(0.1) million, or $(0.00) per common unit, in the fourth quarter 2015.
On a GAAP basis, net loss was approximately $1.3 million for the first quarter 2016, compared with a loss of $297.4 million for the fourth quarter 2015 and net income of $53.5 million in the prior year comparable quarter. The year over year decline in net income was due primarily to lower mark-to-market derivative gains recognized 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 first quarter 2016 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 1 to the Financial Information table of this release.
ARP’s First Quarter 2016 Highlights
Average net daily production for the first quarter 2016 was 237.0 million cubic feet equivalents per day (“Mmcfed") compared to 270.8 Mmcfed in the first quarter 2015. The decrease in net production from the prior year quarter was due primarily to temporarily shutting in older, mature production across ARP’s footprint, in response to the continued weaker commodity price environment.
ARP's net realized price for natural gas including the effect of hedge positions was $3.41 per thousand cubic feet (“mcf") for the first quarter 2016, compared to $3.42 per mcf for the fourth quarter 2015. Net realized oil prices including the effect of hedge positions averaged $77.16 per barrel for the first quarter 2016, compared to $85.26 for the fourth quarter 2015.
Investment partnership margin contributed $3.0 million to Adjusted EBITDA for the first quarter 2016 compared with $5.0 million for the previous quarter. The $2.0 million decrease in investment partnership margin was due to lower amounts of capital deployed during the first quarter 2016 due to scheduled changes in well drilling activity.
During the first quarter 2016, ARP was approximately 76% hedged on its net natural gas production and approximately 99% hedged on its net oil production. During the quarter ended March 31, 2016, ARP received approximately $48.7 million of cash from realized natural gas and oil hedge positions.
AGP’s First Quarter 2016 Highlights
AGP had net daily production of over 7,800 thousand cubic feet equivalent per day (“Mcfed”) in the first quarter 2016, compared to average daily net production of approximately 6,600 Mcfed in the fourth quarter 2015. AGP connected two additional wells in the Eagle Ford shale during the first quarter 2016. AGP recently had its Form S-1 for its continuous $1 billion public offering declared effective by the Securities and Exchange Commission on April 5, 2016.
Corporate Expenses
Cash general and administrative expense, excluding amounts attributable to AGP and ARP, was $0.6 million for the first quarter 2016, compared to $1.4 million for the fourth quarter 2015. The decrease in expense from the prior quarter was due primarily to the timing of certain seasonal costs.
Cash interest expense was $1.5 million for the first quarter 2016, compared to $1.7 million for the fourth quarter 2015. ATLS had approximately $70.6 million of debt on its balance sheet at March 31, 2016, and a cash position of approximately $4.4 million.
ATLS will be discussing its first quarter 2016 results on an investor call with management on Tuesday, May 17, 2016 at 9:00 am Eastern Time. Interested parties are invited to access the live webcast of 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 Energy website and telephonically beginning at approximately 12:30 p.m. ET on May 17, 2016 by dialing 855-859-2056, passcode: 10307133.
Atlas Energy Group, LLC (OTCQX: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 its 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 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 its website at www.atlasresourcepartners.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.
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, potential changes to ATLS or its subsidiaries capital structure, including refinancing, restructuring, or reorganizing its indebtedness; leverage and liquidity, including reductions in its borrowing base that may require repayment, and covenant compliance; 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 AGP’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 COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands, except per unit data)
Three Months Ended
March 31,
Revenues:
2016
2015
Gas and oil production
$
51,593
$
106,560
Well construction and completion
2,100
23,655
Gathering and processing
1,495
2,184
Administration and oversight
455
1,259
Well services
4,432
6,624
Gain on mark-to-market derivatives
46,453
105,585
Other, net
325
(68
)
Total revenues
106,853
245,799
Costs and expenses:
Gas and oil production
36,656
45,989
Well construction and completion
1,826
20,570
Gathering and processing
2,279
2,417
Well services
2,178
2,198
General and administrative
21,920
41,928
Depreciation, depletion and amortization
34,272
44,456
Total costs and expenses
99,131
157,558
Operating income
7,722
88,241
Gain (loss) on asset sales and disposal
9
(11
)
Gain on early extinguishment of debt, net
20,445
−
Interest expense
(29,448
)
(34,751
)
Net income (loss)
(1,272
)
53,479
Preferred unitholders’ dividends
(339
)
(333
)
Income attributable to non-controlling interests
(5,340
)
(58,298
)
Net loss attributable to unitholders’/owner’s interests
$
(6,951
)
$
(5,152
)
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)
$
−
$
(10,475
)
Portion applicable to unitholders’ interest (period subsequent to the transfer of assets on February 27, 2015)
(6,951
)
5,323
Net loss attributable to unitholders’/owner’s interests
$
(6,951
)
$
(5,152
)
Net income (loss) attributable to unitholders per common unit:
Basic
$
(0.27
)
$
0.20
Diluted
$
(0.27
)
$
0.18
Weighted average common units outstanding:
Basic
26,028
26,011
Diluted
26,028
30,976
ATLAS ENERGY GROUP, LLC COMBINED CONSOLIDATED BALANCE SHEETS (unaudited; in thousands)
March 31,
December 31,
ASSETS
2016
2015
Current assets:
Cash and cash equivalents
$
47,994
$
31,214
Accounts receivable
59,381
65,920
Current portion of derivative asset
160,059
159,763
Subscriptions receivable
−
19,877
Prepaid expenses and other
16,666
22,997
Total current assets
284,100
299,771
Property, plant and equipment, net
1,295,637
1,316,897
Intangible assets, net
423
456
Goodwill, net
13,639
13,639
Long-term derivative asset
195,267
198,371
Other assets, net
54,713
54,112
Total assets
$
1,843,779
$
1,883,246
LIABILITIES AND UNITHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
48,985
$
52,550
Liabilities associated with drilling contracts
−
21,483
Accrued interest
10,177
25,452
Accrued well drilling and completion costs
4,731
33,555
Accrued liabilities
34,138
45,014
Current portion of long-term debt
976,795
4,250
Total current liabilities
1,074,826
182,304
Long-term debt, less current portion, net
647,604
1,568,064
Asset retirement obligations and other
127,708
124,919
Unitholders’ equity (deficit):
Common unitholders’ deficit
(108,159
)
(103,148
)
Series A preferred equity
40,740
40,875
Accumulated other comprehensive income
3,498
4,284
(63,921
)
(57,989
)
Non-controlling interests
57,562
65,948
Total unitholders’ equity (deficit)
(6,359
)
7,959
Total liabilities and unitholders’ equity (deficit)
$
1,843,779
$
1,883,246
ATLAS ENERGY GROUP, LLC Financial and Operating Highlights (unaudited)
Three Months Ended
March 31,
2016
2015
Net income (loss) attributable to unitholders per common unit - basic
$
(0.27
)
$
0.20
Production volume: (1)(2)
ATLAS GROWTH:
Natural gas (Mcfd)
500
728
Oil (Bpd)
1,138
490
Natural gas liquids (Bpd)
85
100
Total (Mcfed)
7,839
4,268
ATLAS RESOURCE:
Natural gas (Mcfd)
194,550
227,340
Oil (Bpd)
4,563
5,533
Natural gas liquids (Bpd)
2,509
3,488
Total (Mcfed)
236,983
281,463
TOTAL:
Natural gas (Mcfd)
195,051
228,068
Oil (Bpd)
5,701
6,023
Natural gas liquids (Bpd)
2,594
3,588
Total (Mcfed)
244,821
285,731
Average realized sales prices:(2)
ATLAS GROWTH:
Natural gas (per Mcf)
$
1.91
$
2.70
Oil (per Bbl) (4)
$
30.62
$
45.68
Natural gas liquids (per Bbl)
$
10.34
$
13.25
ATLAS RESOURCE:
Natural gas (per Mcf) (3)
$
3.41
$
3.58
Oil (per Bbl)(4)
$
77.16
$
80.81
Natural gas liquids (per Bbl) (5)
$
8.31
$
22.49
Production costs per Mcfe:(2)(6)
ATLAS GROWTH:
Lease operating expenses per Mcfe
$
0.85
$
0.94
Production taxes per Mcfe
0.21
0.31
Transportation and compression expenses per Mcfe
0.08
0.03
Total production costs per Mcfe
$
1.14
$
1.28
ATLAS RESOURCE:
Lease operating expenses per Mcfe
$
1.25
$
1.35
Production taxes per Mcfe
0.18
0.24
Transportation and compression expenses per Mcfe
0.26
0.23
Total production costs per Mcfe
$
1.69
$
1.82
TOTAL:
Lease operating expenses per Mcfe
$
1.24
$
1.35
Production taxes per Mcfe
0.18
0.24
Transportation and compression expenses per Mcfe
0.25
0.22
Total production costs per Mcfe
$
1.67
$
1.81
(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 $1.78 per Mcf and $2.54 per Mcf for the three months ended March 31, 2016 and 2015, 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 $3.37 per Mcf ($1.74 per Mcf before the effects of financial hedging) and $3.53 per Mcf ($2.48 per Mcf before the effects of financial hedging) for the three months ended March 31, 2016 and 2015, respectively.
(4)AGP’s average sales price for oil before the effects of financial hedging was $28.33 per barrel for the three months ended March 31, 2016. There was no hedging activity during the three months ended March 31, 2015. ARP’s average sales prices for oil before the effects of financial hedging were $29.51 per barrel and $43.46 per barrel for the three months ended March 31, 2016 and 2015, respectively.
(5)There was no effect of financial hedging on ARP’s average sales price for natural gas liquids for the three months ended March 31, 2016. ARP’s average sales price for natural gas liquids before the effects of financial hedging was $14.10 per barrel for the three months ended March 31, 2015.
(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 $1.23 per Mcfe ($1.66 per Mcfe for total production costs) and $1.33 per Mcfe ($1.80 per Mcfe for total production costs) for the three months ended March 31, 2016 and 2015, respectively. Including the effects of these costs, total lease operating expenses per Mcfe were $1.21 per Mcfe ($1.65 per Mcfe for total production costs) and $1.32 per Mcfe ($1.79 per Mcfe for total production costs) for the three months ended March 31, 2016 and 2015, respectively.
ATLAS ENERGY GROUP, LLC Financial Information (unaudited; in thousands except per unit amounts)
Three Months Ended
March 31,
Reconciliation of net income (loss) to non-GAAP measures(1):
2016
2015
Net income (loss)
$
(1,272
)
$
53,479
Distributable cash flow not attributable to unitholders prior to February 27, 2015 (the asset transfer date)(2)
—
(4,291
)
Atlas Resource net income attributable to unitholders
(3,286
)
(25,184
)
Atlas Resource cash distributions earned by ATLS(3)
1,877
9,334
Atlas Growth net loss attributable to unitholders
45
64
Atlas Growth cash distributions earned by ATLS(3)
154
72
Non-recurring spinoff and acquisition costs
—
17,174
Amortization of deferred finance costs and predecessor
Term Loan interest expense
247
8,551
Non-cash stock compensation expense
2,111
20
Preferred unit distributions
(339
)
(333
)
Loss on early extinguishment of debt, net
6,053
—
Other non-cash adjustments
260
557
Income attributable to non-controlling interests
(5,340
)
(58,298
)
Distributable Cash Flow attributable to unitholders(1)
$
510
$
1,145
Supplemental Adjusted EBITDA and Distributable Cash Flow Summary:
Atlas Resource Cash Distributions Earned(3):
Limited Partner Units
$
1,799
$
8,726
Series A Preferred Units (2%)
78
608
Incentive Distribution Rights
—
—
Total Atlas Resource Cash Distributions Earned(3)
1,877
9,334
per limited partner unit
$
0.025
$
0.325
Atlas Growth Cash Distributions Earned(3)
154
72
Total Cash Distributions Earned
2,031
9,406
Cash general and administrative expenses(4)
(613
)
(3,365
)
Other, net
927
731
Adjusted EBITDA(1)
2,345
6,772
Cash interest expense(5)
(1,496
)
(1,003
)
Preferred unit distributions
(339
)
(333
)
Distributable Cash Flow(1)
$
510
$
5,436
Distributable cash flow not attributable to unitholders prior to February 27, 2015 (the asset transfer date)(2)
—
(4,291
)
Distributable Cash Flow attributable to unitholders(1)
$
510
$
1,145
(1) EBITDA and Distributable Cash Flow are relevant and useful because they help ATLS’ investors understand its operating performance, allow for easier comparison of its results with other master limited partnerships (“MLP”), and are critical components 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 sales and 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
• Preferred unit distributions.
(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)
March 31, 2016
Atlas
Atlas
Energy
Resource
Consolidated
Total debt
$
70,639
$
1,553,760
$
1,624,399
Less: Cash
(28,709
)
(19,285
)
(47,994
)
Total net debt
41,930
1,534,475
1,576,405
Unitholders’ equity (deficit)
68,322
(83,481
)
(6,359)(1)
Total capitalization
$
110,252
$
1,450,994
$
1,570,046
Ratio of net debt to capitalization
0.38x
(1) Net of eliminated amounts.
December 31, 2015
Atlas
Atlas
Energy
Resource
Consolidated
Total debt
$
68,887
$
1,503,427
$
1,572,314
Less: Cash
(29,861
)
(1,353
)
(31,214
)
Total net debt
39,026
1,502,074
1,541,100
Unitholders’ equity (deficit)
83,922
(84,628
)
7,959(2)
Total capitalization
$
122,948
$
1,417,446
$
1,549,059
Ratio of net debt to capitalization
0.32x
(2) Net of eliminated amounts.
ATLAS ENERGY GROUP, LLC CONSOLIDATING STATEMENTS OF OPERATIONS (unaudited; in thousands)
Three Months Ended March 31, 2016
Atlas
Atlas
Energy
Resource
Eliminations
Consolidated
Revenues:
Gas and oil production
$
3,101
$
48,492
$
−
$
51,593
Well construction and completion
−
2,100
−
2,100
Gathering and processing
−
1,495
−
1,495
Administration and oversight
−
455
−
455
Well services
−
4,432
−
4,432
Gain on mark-to-market derivatives
333
46,120
−
46,453
Other, net
211
114
−
325
Total revenues
3,645
103,208
−
106,853
Costs and expenses:
Gas and oil production
814
35,842
−
36,656
Well construction and completion
−
1,826
−
1,826
Gathering and processing
−
2,279
−
2,279
Well services
−
2,178
−
2,178
General and administrative
4,843
17,077
−
21,920
Depreciation, depletion and amortization
4,227
30,045
−
34,272
Total costs and expenses
9,884
89,247
−
99,131
Operating income (loss)
(6,239
)
13,961
−
7,722
Gain on asset sales and disposal
−
9
−
9
Gain (loss) on early extinguishment of debt, net
(6,053
)
26,498
−
20,445
Interest expense
(1,743
)
(27,705
)
−
(29,448
)
Net income (loss)
(14,035
)
12,763
−
(1,272
)
Preferred unitholders’ dividends
(339
)
−
−
(339
)
Income attributable to non-controlling interests
−
−
(5,340
)
(5,340
)
Net income (loss) attributable to unitholders’ interests
$
(14,374
)
$
12,763
$
(5,340
)
$
(6,951
)
ATLAS ENERGY GROUP, LLC COMBINED CONSOLIDATING STATEMENTS OF OPERATIONS (unaudited; in thousands)
Three Months Ended March 31, 2015
Atlas
Atlas
Energy
Resource
Eliminations
Consolidated
Revenues:
Gas and oil production
$
2,311
$
104,249
$
−
$
106,560
Well construction and completion
−
23,655
−
23,655
Gathering and processing
−
2,184
−
2,184
Administration and oversight
−
1,259
−
1,259
Well services
−
6,624
−
6,624
Gain on mark-to-market derivatives
−
105,585
−
105,585
Other, net
(101
)
33
−
(68
)
Total revenues
2,210
243,589
−
245,799
Costs and expenses:
Gas and oil production
491
45,498
−
45,989
Well construction and completion
−
20,570
−
20,570
Gathering and processing
−
2,417
−
2,417
Well services
−
2,198
−
2,198
General and administrative
24,793
17,135
−
41,928
Depreciation, depletion and amortization
1,465
42,991
−
44,456
Total costs and expenses
26,749
130,809
−
157,558
Operating income (loss)
(24,539
)
112,780
−
88,241
Loss on asset sales and disposal
−
(11
)
−
(11
)
Interest expense
(9,554
)
(25,197
)
−
(34,751
)
Net income (loss)
(34,093
)
87,572
−
53,479
Preferred unitholders’ dividends
(333
)
−
−
(333
)
Income attributable to non-controlling interests
−
−
(58,298
)
(58,298
)
Net income (loss) attributable to unitholders’ / owners’ interests
$
(34,426
)
$
87,572
$
(58,298
)
$
(5,152
)
ATLAS ENERGY GROUP, LLC CONDENSED CONSOLIDATING BALANCE SHEETS (unaudited; in thousands)
March 31, 2016
Atlas
Atlas
ASSETS
Energy
Resource
Eliminations
Consolidated
Current assets:
Cash and cash equivalents
$
28,709
$
19,285
$
−
$
47,994
Accounts receivable
3,168
57,152
(939
)
59,381
Receivable from (advances from) affiliates
(10,997
)
10,997
−
−
Current portion of derivative asset
314
159,745
−
160,059
Prepaid expenses and other
31
16,635
−
16,666
Total current assets
21,225
263,814
(939
)
284,100
Property, plant and equipment, net
120,592
1,175,045
−
1,295,637
Intangible assets, net
−
423
−
423
Goodwill, net
−
13,639
−
13,639
Long-term derivative asset
193
195,074
−
195,267
Investment in subsidiaries
(7,861
)
−
7,861
−
Other assets, net
22,272
31,502
939
54,713
$
156,421
$
1,679,497
$
7,861
$
1,843,779
LIABILITIES AND UNITHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
2,865
$
46,120
$
−
$
48,985
Accrued interest
43
10,134
−
10,177
Accrued well drilling and completion costs
678
4,053
−
4,731
Accrued liabilities
9,792
25,285
(939
)
34,138
Current portion of long-term debt
70,639
906,156
−
976,795
Total current liabilities
84,017
991,748
(939
)
1,074,826
Long-term debt, less current portion, net
−
647,604
−
647,604
Asset retirement obligations and other
4,082
123,626
−
127,708
Unitholders’ equity (deficit):
Common unitholders’ deficit
(108,159
)
−
−
(108,159
)
Series A preferred equity
40,740
−
−
40,740
Partners’ deficit
−
(99,341
)
99,341
−
Accumulated other comprehensive income
3,498
15,860
(15,860
)
3,498
(63,921
)
(83,481
)
83,481
(63,921
)
Non-controlling interests
132,243
−
(74,681
)
57,562
Total unitholders’ equity (deficit)
68,322
(83,481
)
8,800
(6,359
)
$
156,421
$
1,679,497
$
7,861
$
1,843,779
ATLAS ENERGY GROUP, LLC COMBINED CONDENSED CONSOLIDATING BALANCE SHEETS (unaudited; in thousands)
December 31, 2015
Atlas
Atlas
ASSETS
Energy
Resource
Eliminations
Consolidated
Current assets:
Cash and cash equivalents
$
29,861
$
1,353
$
−
$
31,214
Accounts receivable
3,492
63,367
(939
)
65,920
Receivable from (advances to) affiliates
9,924
(9,924
)
−
−
Current portion of derivative asset
303
159,460
−
159,763
Subscriptions receivable
−
19,877
−
19,877
Prepaid expenses and other
62
22,935
−
22,997
Total current assets
43,642
257,068
(939
)
299,771
Property, plant and equipment, net
125,286
1,191,611
−
1,316,897
Intangible assets, net
−
456
−
456
Goodwill, net
−
13,639
−
13,639
Long-term derivative asset
109
198,262
−
198,371
Investment in subsidiaries
(7,726
)
−
7,726
−
Other assets, net
24,184
28,989
939
54,112
$
185,495
$
1,690,025
$
7,726
$
1,883,246
LIABILITIES AND UNITHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
3,301
$
49,249
$
−
$
52,550
Liabilities associated with drilling contracts
−
21,483
−
21,483
Accrued interest
16
25,436
−
25,452
Accrued well drilling and completion costs
6,641
26,914
−
33,555
Accrued liabilities
16,959
28,994
(939
)
45,014
Current portion of long-term debt
4,250
−
−
4,250
Total current liabilities
31,167
152,076
(939
)
182,304
Long-term debt, less current portion, net
64,637
1,503,427
−
1,568,064
Asset retirement obligations and other
5,769
119,150
−
124,919
Unitholders’ equity (deficit):
Common unitholders’ deficit
(103,148
)
−
−
(103,148
)
Series A preferred equity
40,875
−
−
40,875
Partners’ deficit
−
(104,003
)
104,003
−
Accumulated other comprehensive income
4,284
19,375
(19,375
)
4,284
(57,989
)
(84,628
)
84,628
(57,989
)
Non-controlling interests
141,911
−
(75,963
)
65,948
Total unitholders’ equity (deficit)
83,922
(84,628
)
8,665
7,959
$
185,495
$
1,690,025
$
7,726
$
1,883,246
ATLAS ENERGY GROUP, LLC Ownership Interests Summary
Atlas Energy Ownership Interests as of May 16, 2016:
Amount
Overall Ownership Interest Percentage
ATLAS RESOURCE:
General partner interest
100
%
2.0
%
Common units
20,962,485
19.7
%
Preferred units
3,749,986
3.5
%
Incentive distribution rights
100
%
N/A
Total Atlas Energy ownership interests in Atlas Resource
25.2
%
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
15.4
%
Approximate limited partner ownership interest
12.0
%
CONTACT:
Matthew Skelly
Vice President – Head of Investor Relations
Atlas Energy Group, LLC
(877) 280-2857
(215) 405-2718 (fax)
