Atlas Resource Partners, L.P. (NYSE: ARP) (“Atlas Resource” or “ARP”) today reported operating and financial results for the second quarter 2012.
Edward E. Cohen, Chief Executive Officer of Atlas Resource Partners, stated, “We are very pleased with our results in the second quarter, especially our record production level of over 62 Mmcfe per day. Nonetheless, this period should be seen as a mere prelude to the sharp acceleration in distributable cash flow that we anticipate in future quarters. We have taken the last several months to effectuate major transformations – acquisitions, new fields, new blockbuster wells, a new investor program – that are now generating and will increasingly generate substantial growth in distributable cash flow. We are happy to reconfirm our distribution guidance for the second half of 2012 in a range of $0.90 to $1.00 per unit, as well as full year 2013 distribution guidance in a range of $2.30 to $2.45 per unit, representing approximately a 50% increase from the current annualized distribution level of $1.60 per unit.”
Second Quarter 2012 Results
- Adjusted earnings before interest, income taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP measure, of $16.6 million (1), or $0.50 per common unit, for the second quarter 2012;
- Distributable cash flow, a non-GAAP measure, of $14.3 million (1), or $0.43 per common unit for the second quarter 2012;
- ARP declared a cash distribution of $0.40 per limited partner unit for the second quarter 2012, at a coverage ratio of approximately 1.1x; and,
- On a GAAP basis, net loss was $16.7 million for the second quarter 2012. The loss for the second quarter 2012 included acquisition costs related to the recent Barnett Shale transaction. Please see the reconciliation of GAAP net loss to adjusted EBITDA in the financial tables of this release for further information.
Matthew A. Jones, President of Atlas Resource Partners, added, “Since the closing of our acquisition of Titan in late July 2012, we have been able to commence our drilling plan for the Barnett Shale in order to drive substantial growth in production and cash flow from that region. We are also excited as we begin drilling in our new and high-returning development areas, particularly the Mississippi Lime in northwestern Oklahoma, the Utica Shale in eastern Ohio and the Marcellus Shale in northeastern Pennsylvania.”