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Atlas Energy, L.P. (NYSE: ATLS) (“Atlas Energy” or “ATLS”) today reported operating and financial results for the fourth quarter 2011.
Fourth Quarter 2011 and Full Year 2011 Highlights & Results
Adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure, of $21.5 million (1)(2) for the fourth quarter 2011 and $80.2 million for the full year 2011;
Distributable cash flow, a non-GAAP measure, of $19.0 million, or $0.37 per common unit (1)(2) for the fourth quarter 2011 and $69.9 million, or $1.44 per common unit, for the full year 2011;
ATLS declared a cash distribution of $0.24 per limited partner unit for the fourth quarter 2011, a $0.17 per unit increase, or over 200%, from the prior year comparable quarter. Coverage on the fourth quarter 2011 distribution was 1.5x; and,
On a GAAP basis, net loss was $9.6 million for the fourth quarter 2011 compared to $47.0 million for the prior year comparable period. The loss for each period was caused primarily by non-cash expenses, including asset impairment write downs on certain oil & gas properties and losses on mark-to-market derivatives. Please see the reconciliation of GAAP net loss to adjusted EBITDA in the financial tables of this release for further information.
A reconciliation of GAAP net loss to adjusted EBITDA and distributable cash flow is provided in the financial tables of this release.
On February 17, 2011, ATLS acquired certain assets and assumed certain liabilities (the “Transferred Business”) from Atlas Energy, Inc., the former owner of ATLS’ general partner. ATLS’ gross margin, adjusted EBITDA and distributable cash flow include the results of operations of the Transferred Business from the date of acquisition. However, in accordance with prevailing accounting principles, all other ATLS financial information, including revenues and net income, are presented combined with those of the Transferred Business for historical periods prior to the date of acquisition, although ATLS did not own the Transferred Business for these periods.
Recent EventsAtlas Energy Formally Approves Distribution of Atlas Resource Partners’ Units to ATLS Unitholders
On February 16, 2012, ATLS and Atlas Resource Partners, L.P. (“ARP”), a newly formed exploration & production (“E&P”) master limited partnership (“MLP”) that will hold substantially all of ATLS’ current natural gas and oil development and production assets and its investment partnership business,
announced that the board of directors of ATLS’ general partner approved the distribution of approximately 5.24 million ARP common units, representing an approximate 19.6% limited partner interest in ARP. The distribution of ARP units will be conducted on Tuesday, March 13, 2012 to all ATLS unitholders of record as of Tuesday, February 28, 2012. ATLS unitholders will receive 0.1021 of a common unit of ARP for each common unit of ATLS owned as of the close of business on the record date. ATLS unitholders will receive cash in lieu of fractional units of ARP, which will be aggregated and sold on their behalf by ATLS’ transfer agent.
Immediately after the distribution of the limited partner interests in ARP, ATLS will continue to hold common units representing an approximate 78.4% limited partner interest in ARP, as well as the general partner of ARP, which will hold a 2% general partner interest and all of the incentive distribution rights in ARP. ATLS will also continue to own its existing interest in the midstream operations of Atlas Pipeline Partners, L.P. (NYSE: APL), ATLS’ midstream subsidiary, a leading natural gas gathering and processing MLP based in the Mid Continent region in Oklahoma and Texas.