Just as with Atlas’ pipeline where we are enjoying a crescendo of growth in distribution through our IDRs and from our common units, the ownership of incentive distribution rights – these IDRs – in Atlas Resource Partners will become increasingly more valuable when and as the distributable cash flow of Atlas Resource Partners increases in the future. Most importantly, such gains at APL and at ARP will occur without ATLS shareholders themselves suffering any dilution through the issuance of new shares and without ATLS itself borrowing any monies.
Now, you may remember that in an October call, we had set forth our expectations for the new ARP and the benefits that we thought it would bring to its own unitholders and to ATLS’ unitholders. All this is on the verge of being realized. I know that some observers thought that we were being overly optimistic in suggesting that we could move within three to four months from concept to reality, but the SEC has been quite efficient and our Form 10 filing was declared effective on February 14. We are now in a position to reaffirm our initial expectation that in the first 12 months of operation, ARP will be able to distribute $1.60 to its unitholders.
As you will hear in more detail from Matt Jones shortly, our new Marcellus wells, although being connected slightly later than originally anticipated, these wells have shown even greater initial test production than anticipated and greater volume should largely compensate for any shortfall in realized prices as against initial projections. I should note that in addition to the final wells completed in cooperation with Chevron on our old acreage in southwestern Pennsylvania and now about to be turned on, we have already moved into new areas of the Marcellus in West Virginia and northeastern Pennsylvania, areas not covered by the Chevron restrictions which, in any event, expire partly in February 2013 and fully in February 2014; and we anticipate highly favorable results from these fresh initiatives.
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