May 16, 2016 - 10:44 PM EDT
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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 [email protected].

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 [email protected].

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, 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    
ASSETSEnergy 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    
ASSETSEnergy 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)

Source: GlobeNewswire (May 16, 2016 - 10:44 PM EDT)

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