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Atlas Resource Partners, L.P. Reports Operating And Financial Results For The Second Quarter 2012

Stocks in this article: ARP ATLS

(1) A reconciliation of GAAP net loss to adjusted EBITDA and distributable cash flow is provided in the financial tables of this release.

Recent Events

Acquisition of Titan Operating, L.L.C.

On July 25, 2012, ARP acquired Titan Operating, L.L.C. (“Titan”), a privately held company based in Fort Worth, Texas. Through the Titan transaction, ARP acquired approximately 250 Bcfe of proved reserves and associated assets in the Barnett Shale in Texas. This transaction represents ARP’s second acquisition in the Barnett Shale in 2012, establishing a position of approximately 527 Bcfe of total net proved reserves in the region. ARP’s total net proved reserves pro forma for the acquisition are approximately 700 Bcfe, almost four times greater than its original net reserves upon first trading publicly in March 2012. The acquisition was funded through a private placement of approximately 3.8 million ARP common units and approximately 3.8 million newly-created Class B Convertible Preferred ARP units (or approximately $184 million in total equity consideration, based on the ARP closing price of $24.23 on the date of the transaction announcement on May 16, 2012), as well as approximately $15.4 million in cash for closing adjustments. Concurrent with the closing of the Titan transaction, ARP expanded the borrowing base on its revolving credit line from $250 million to $310 million.

Acquisition of Barnett Shale Assets from Carrizo

On April 30, 2012, ARP closed its acquisition of approximately 277 Bcfe of proved reserves, including undeveloped drilling locations, in the Barnett Shale in Texas from Carrizo Oil & Gas (NASD: CRZO) for approximately $190 million, or $0.69 per mcfe. The transaction was funded by a private placement of equity of approximately $120 million and approximately $70 million borrowed against ARP’s revolving credit facility.

E&P Operations

  • Average net daily production for the second quarter 2012 was 62.5 million cubic feet equivalents per day (“Mmcfe/d”), an increase of approximately 23.1 Mmcfe/d, or 59%, compared with the first quarter 2012. The increase was primarily due to the closing of the acquisition of Barnett Shale assets from Carrizo in April 2012, as well as additional legacy Marcellus Shale wells connected in southwestern Pennsylvania during the quarter.
  • During the second quarter 2012, ARP began initial drilling on locations in the oil & natural gas liquids (NGL) rich Mississippi Lime basin in northwestern Oklahoma. ARP is currently the operating partner in a 50/50 joint venture with Equal Energy, Ltd. (NYSE: EQU), in which the parties will develop locations in Alfalfa, Grant and Garfield Counties in Oklahoma.

Hedge Positions

  • ARP entered into additional derivative contracts during the second quarter 2012 for its natural gas and oil production. ARP currently has approximately 79.1 billion cubic feet equivalents of its future production hedged through 2016, including hedges associated with the Titan Barnett Shale production acquired on July 25, 2012. A summary of ARP’s current derivative positions as of August 7, 2012 is provided in the financial tables of this release.

Corporate Expenses

  • Cash general and administrative expense was $8.8 million for the second quarter 2012, a $5.5 million increase from $3.3 million for the prior year second quarter and a decrease of $0.5 million from the first quarter 2012. The increase from prior year second quarter was principally due to approximately $6.2 million of fees recognized in the prior year related to the transition service agreement with Chevron, which expired in the fourth quarter 2011.
  • Cash interest expense was $0.5 million for the second quarter 2012. As of June 30, 2012, ARP had $144.0 million outstanding under its revolving credit facility, which has a current borrowing base of $310 million, and had a cash position of $25.1 million.

Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Resource Partners, L.P.’s second quarter 2012 results on Wednesday, August 8, 2012 at 9:00 am ET by going to the Investor Relations section of Atlas Resource’s website at www.atlasresourcepartners.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 Resource website and telephonically beginning at 11:00 a.m. ET on August 8, 2012 by dialing 888-286-8010, passcode: 74016861.

Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration & production master limited partnership which owns an interest in over 8,600 producing natural gas and oil wells, representing approximately 700 Bcfe of net proved reserves, primarily in Appalachia and the Barnett Shale in Texas. ARP is also the largest sponsor of natural gas and oil investment partnerships in the U.S. For more information, please visit our website at www.atlasresourcepartners.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.

Atlas Energy, L.P. (NYSE: ATLS) is a master limited partnership which owns all of the general partner Class A units and incentive distribution rights and an approximate 52% limited partner interest in its upstream oil & gas subsidiary, Atlas Resource Partners, L.P. Additionally, Atlas Energy owns and operates the general partner of its midstream oil & gas subsidiary, Atlas Pipeline Partners, L.P., through all of the general partner interest, all the incentive distribution rights and an approximate 11% limited partner interest. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.

Atlas Pipeline Partners, L.P. (NYSE: APL) is active in the gathering and processing segments of the midstream natural gas industry. In the midcontinent region of Oklahoma, southern Kansas, and northern and western Texas, APL owns and operates seven active gas processing plants as well as approximately 9,100 miles of active intrastate gas gathering pipeline. APL also has a 20% interest in West Texas LPG Pipeline Limited Partnership, which is operated by Chevron Corporation. For more information, visit the Partnership's website at www.atlaspipeline.com or contact IR@atlaspipeline.com.

Cautionary Note Regarding Forward-Looking Statements

This document 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. ARP 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 potential, ARP’s 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; changes in commodity prices; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; ARP’s level of indebtedness; 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 ARP’s reports filed with the U.S. Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Forward-looking statements speak only as of the date hereof, and ARP assumes no obligation to update such statements, except as may be required by applicable law.

 
ATLAS RESOURCE PARTNERS, L.P.
CONSOLIDATED COMBINED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per unit data)

   
Three Months Ended Six Months Ended
June 30, June 30,
  2012       2011     2012       2011  
Revenues:
Gas and oil production $ 19,460 $ 17,723 $ 36,624 $ 35,349
Well construction and completion 12,241 10,954 55,960 28,679
Gathering and processing 2,863 5,118 6,177 9,617
Administration and oversight 1,315 1,375 4,146 2,736
Well services 5,252 4,855 10,258 10,141
Other, net   (4,086 )   (12 )   (5,019 )   (65 )
Total revenues   37,045     40,013     108,146     86,457  
 
Costs and expenses:
Gas and oil production 4,447 4,042 8,952 7,963
Well construction and completion 10,606 9,284 48,301 24,305
Gathering and processing 3,953 5,763 8,627 11,497
Well services 2,414 1,674 4,844 4,034
General and administrative 20,538 3,276 32,280 7,518
Depreciation, depletion and amortization   10,822     8,247     19,930     15,948  
Total costs and expenses   52,780     32,286     122,934     71,265  
 
Operating income (loss) (15,735 ) 7,727 (14,788 ) 15,192
 
Gain (loss) on asset sales and disposal (16 ) 48 (7,021 ) 48
Interest expense   (956 )       (1,106 )    
 
Net income (loss) $ (16,707 ) $ 7,775   $ (22,915 ) $ 15,240  
 
Allocation of net income (loss):
Portion applicable to owner’s interest (period prior to the transfer of assets on March 5, 2012)

$

$ 7,775

$

250

$ 15,240
Portion applicable to common limited partners and general partner’s interests (period subsequent to the transfer of assets on March 5, 2012)  

 

(16,707

 

)

     

 

(23,165

 

)

   
Net income (loss) $ (16,707 ) $ 7,775   $ (22,915 ) $ 15,240  
 
Allocation of net loss attributable to common limited partners and the general partner:
General partner’s interest $ (334 ) $ $ (463 ) $
Common limited partners’ interest   (16,373 )       (22,702 )    

Net loss attributable to common limited partners and the general partner

$ (16,707 )

$

  $ (23,165 )

$

 
 
Net loss attributable to common limited partners per unit:
Basic $ (0.54 ) $   $ (0.77 ) $  
Diluted $ (0.54 ) $   $ (0.77 ) $  
 
Weighted average common limited partner units outstanding:
Basic   30,307         29,367      
Diluted   30,307         29,367      
 
ATLAS RESOURCE PARTNERS, L.P.
CONSOLIDATED COMBINED BALANCE SHEETS

(unaudited; in thousands)

   

June 30,

December 31,

ASSETS

2012

2011

Current assets:

Cash and cash equivalents

$

25,143

$

54,708

Accounts receivable

22,067

19,319

Current portion of derivative asset

16,127

13,801

Subscriptions receivable

34,455

Prepaid expenses and other

 

7,173

 

7,677

Total current assets

70,510

129,960

 

Property, plant and equipment, net

752,505

520,883

Goodwill and intangible assets, net

33,193

33,285

Long-term derivative asset

19,554

16,128

Other assets, net

 

8,090

 

857

$

883,852

$

701,113

 

LIABILITIES AND PARTNERS’ CAPITAL/EQUITY

 

Current liabilities:

Accounts payable

$

26,006

$

36,731

Liabilities associated with drilling contracts

18,757

71,719

Current portion of derivative payable to Drilling Partnerships

15,880

20,900

Accrued well drilling and completion costs

34,936

17,585

Accrued liabilities

 

21,209

 

35,952

Total current liabilities

116,788

182,887

 

Long-term debt

144,000

Long-term derivative payable to Drilling Partnerships

8,508

15,272

Asset retirement obligations and other

51,174

45,779

 

Commitments and contingencies

 

Partners’ Capital/Equity:

General partner’s interest

8,135

Common limited partners’ interests

521,002

Equity

427,246

Accumulated other comprehensive income

 

34,245

 

29,929

Total partners’ capital/equity

 

563,382

 

457,175

$

883,852

$

701,113

 
ATLAS RESOURCE PARTNERS, L.P.
Financial and Operating Highlights
   
Three Months Ended Six Months Ended
June 30, June 30,
  2012     2011     2012     2011
 
Net loss attributable to common limited partners per unit - basic $ (0.54 ) $ $ (0.77 ) $
 
Distributable cash flow per unit (1)(2) $ 0.43 $ $ 0.57 $
 
Cash distributions paid per unit (3) $ 0.40 $ $ 0.52 $
 
Production revenues (in thousands):
Natural gas $ 15,145 $ 12,472 $ 27,844 $ 26,194
Oil 2,593 3,027 5,380 5,086
Natural gas liquids   1,722     2,224   3,400     4,069
Total production revenues $ 19,460   $ 17,723 $ 36,624   $ 35,349
 
Production volume: (4)(5)

Appalachia: (6)

Natural gas (Mcfd) 34,760 28,208 33,075 28,714
Oil (Bpd) 290 334 297 298
Natural gas liquids (Bpd)   431     472   427     469
Total (Mcfed)   39,086     33,042   37,419     33,314

Barnett: (7)

Natural gas (Mcfd) 28,629 28,629
Oil (Bpd)
Natural gas liquids (Bpd)   47       47    
Total (Mcfed)   28,912       28,912    

New Albany/Antrim:

Natural gas (Mcfd) 3,023 3,192 3,025 3,218
Oil (Bpd)
Natural gas liquids (Bpd)            
Total (Mcfed)   3,023     3,192   3,025     3,218

Niobrara:

Natural gas (Mcfd) 734 399 688 293
Oil (Bpd)
Natural gas liquids (Bpd)            
Total (Mcfed)   734     399   688     293

Total (7) :

Natural gas (Mcfd) 58,022 31,799 46,541 32,225
Oil (Bpd) 290 334 297 298
Natural gas liquids (Bpd)   463     472   443     469
Total (Mcfed)   62,541     36,633   50,981     36,825
 
Average sales prices: (5)
Natural gas (per Mcf) (8) $ 3.49 $ 5.15 $ 3.81 $ 5.31
Oil (per Bbl) (9) $ 98.31 $ 99.70 $ 99.89 $ 94.32
Natural gas liquids (per Bbl) $ 40.85 $ 51.77 $ 42.22 $ 47.95
 
Production costs: (5)(10)
Lease operating expenses per Mcfe (11) $ 0.71 $ 1.05 $ 0.84 $ 1.01
Production taxes per Mcfe   0.11     0.09   0.11     0.10
Total production costs per Mcfe (11) $ 0.82 $ 1.14 $ 0.95 $ 1.12
 
Depletion per Mcfe (5) $ 1.67 $ 2.15 $ 1.84 $ 2.06
 

(1)

  A reconciliation from net income to distributable cash flow is provided in the financial tables of this release.
 
(2) Calculation consists of distributable cash flow divided by 32,227,945 and 31,490,061 common units for the three and six months ended June 30, 2012, respectively, which represent the weighted average common limited partner units which were paid cash distributions for the respective period subsequent to March 5, 2012, the date of the transfer of assets. Prior to March 5, 2012, no common limited partner units were outstanding.
 
(3) Represents the cash distributions declared per limited partner unit for the respective period and paid by ARP within 45 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter. The cash distribution declared of $0.12 per limited partner unit for the 1 st quarter 2012 reflects a prorated cash distribution for the 27-day period from March 5, 2012, the date of transfer of the assets to ARP, to March 31, 2012.
 
(4) Production quantities consist of the sum of (i) ARP’s proportionate share of production from wells in which it has a direct interest, based on ARP’s 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.
 
(5) “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.
 
(6) Appalachia consists of ARP’s production located in Pennsylvania, Ohio, New York, West Virginia and Tennessee.
 
(7) Volumetric data for Barnett for the three and six months ended June 30, 2012 represents average volumes recognized for the 62-day period from April 30, 2012, the date of acquisition, through June 30, 2012. Total production per day for the Partnership represents total production volume over the 91 and 182 days within the three and six months ended June 30, 2012, respectively.
 
(8) ARP’s average sales prices for natural gas before the effects of financial hedging were $2.03 per Mcf and $5.05 per Mcf for the three months ended June 30, 2012 and 2011, respectively, and $2.76 per Mcf and $4.64 per Mcf for the six months ended June 30, 2012 and 2011, respectively. These amounts exclude the impact of subordination of production revenues to investor partners within the investor partnerships. Including the effects of subordination, average natural gas sales prices were $2.87 per Mcf ($1.40 per Mcf before the effects of financial hedging) and $4.31 per Mcf ($4.20 per Mcf before the effects of financial hedging) for the three months ended June 30, 2012 and 2011, respectively, and $3.29 per Mcf ($2.24 per Mcf before the effects of financial hedging) and $4.49 per Mcf ($3.82 per Mcf before the effects of financial hedging) for the six months ended June 30, 2012 and 2011, respectively.
 
(9) ARP’s average sales prices for oil before the effects of financial hedging were $94.39 per barrel and $99.70 per barrel for the three months ended June 30, 2012 and 2011, respectively, and $97.60 per barrel and $92.25 per barrel for the six months ended June 30, 2012 and 2011, respectively.
 
(10) Production costs include labor to operate the wells and related equipment, repairs and maintenance, materials and supplies, property taxes, severance taxes, insurance and production overhead. 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, lease operating expenses per Mcfe were $0.38 per Mcfe ($0.49 per Mcfe for total production costs) and $0.71 per Mcfe ($0.80 per Mcfe for total production costs) for the three months ended June 30, 2012 and 2011, respectively, and $0.56 per Mcfe ($0.67 per Mcfe for total production costs) and $0.70 per Mcfe ($0.80 per Mcfe for total production costs) for the six months ended June 30, 2012 and 2011, respectively.
 
(11) The amount for the six months ended June 30, 2011 was adjusted to reflect current period classification resulting from the misclassification of lease operating production expenses and transportation production expenses.
 
ATLAS RESOURCE PARTNERS, L.P.
CAPITALIZATION INFORMATION

(unaudited; in thousands)

   
June 30, December 31,
  2012     2011  
Total debt $ 144,000 $
Less: Cash   (25,143 )   (54,708 )
Total net debt/(cash) 118,857 (54,708 )
 
Partners’ capital/equity   563,382     457,175  
 
Total capitalization $ 682,239   $ 402,467  
 
Ratio of net debt to capitalization 0.17x 0.00x
 
ATLAS RESOURCE PARTNERS, L.P.
CAPITAL EXPENDITURE DATA

(unaudited; in thousands)

   
Three Months Ended Six Months Ended
June 30, June 30,
2012   2011 2012   2011
Maintenance capital expenditures $ 1,750 $ 3,567 $ 3,500 $ 5,233
Expansion capital expenditures   24,944   3,083   42,152   9,149
Total $ 26,694 $ 6,650 $ 45,652 $ 14,382
 
ATLAS RESOURCE PARTNERS, L.P.
Financial Information

(unaudited; in thousands)

   
Three Months Ended Six Months Ended
June 30, June 30,
Adjusted EBITDA and Distributable Cash Flow Summary:   2012       2011     2012       2011  
Gas and oil production margin $ 18,875 $ 13,514 $ 31,534 $ 27,053
Well construction and completion margin 1,635 1,670 7,659 4,374
Administration and oversight margin 1,315 1,375 4,146 2,736
Well services margin 2,838 3,181 5,414 6,107
Gathering   (1,090 )   (645 )   (2,450 )   (1,880 )
Gross Margin 23,573 19,095 46,303 38,390
Est. April Gross Margin for Barnett Acquisition (1)   1,800         1,800      
Adjusted Gross Margin 25,373 19,095 48,103 38,390
Cash general and administrative expenses (8,753 ) (3,276 ) (18,040 ) (7,518 )
Other, net   (61 )   4     (43 )   (49 )
Adjusted EBITDA (2) 16,559 15,823 30,020 30,823
Cash interest expense (3) (518 ) (576 )
Maintenance capital expenditures   (1,750 )   (3,567 )   (3,500 )   (5,233 )
Distributable Cash Flow (2) 14,291 12,256 25,944 25,590
Distributable cash flow not attributable to common limited partners and the general partner prior to March 5, 2012 (the date of transfer of assets) (5)  

 

   

 

(12,256

 

)

 

 

(7,880

 

)

 

 

(25,590

 

)

Distributable Cash Flow attributable to common limited partners (2)

$

14,291

 

$

 

$

18,064

 

$

 
 
Distributions Paid (4) $ 13,154 $ $ 16,362 $
per limited partner unit $ 0.40 $ $ 0.52 $
 
 
Reconciliation of non-GAAP measures to net income (loss) (4) :

Distributable cash flow attributable to common limited partners and the general partner

$

14,291

$

$

18,064

$

Distributable cash flow not attributable to common limited partners and the general partner prior to March 5, 2012 (the date of transfer of assets) (5)

 

 

12,256

 

7,880

 

25,590

Est. April gross margin for Barnett Acquisition (1) (1,800 ) (1,800 )
Acquisition and related costs (8,770 ) (11,225 )
Depreciation, depletion and amortization (10,822 ) (8,247 ) (19,930 ) (15,948 )
Amortization of deferred finance costs (438 ) (530 )
Non-cash stock compensation expense (3,015 ) (3,015 )
Maintenance capital expenditures 1,750 3,567 3,500 5,233
Loss on asset disposal (16 ) 48 (7,021 ) 48
Adjustment to reflect cash impact of derivatives (3,862 ) (3,862 )
Premiums paid on swaption derivative contracts (Carrizo Barnett acquisition)

(4,025

)

(4,976

)

Other non-cash adjustments (6)       151           317  
Net income (loss) $ (16,707 ) $ 7,775   $ (22,915 )   $ 15,240  
 
(1)   Includes estimated gross margin generated for the month of April 2012. ARP consummated the acquisition of the Barnett assets from Carrizo on April 30, 2012, with ARP receiving all of the net cash generated by the assets from January 1, 2012 through April 30, 2012 as an acquisition adjustment, which is not included within ARP’s gross margin for the period. As such, ARP has included this portion of cash received attributable to the month of April 2012 as it will pay a full quarter’s cash distribution for the 2 nd quarter 2012 on the units issued in the transaction.
 
(2) Adjusted EBITDA and distributable cash flow are non-GAAP (generally accepted accounting principles) financial measures under the rules of the Securities and Exchange Commission. Management of ARP believes that adjusted EBITDA and distributable cash flow provide additional information for evaluating ARP’s performance, among other things. These measures are widely used by commercial banks, investment bankers, rating agencies and investors in evaluating performance relative to peers and pre-set performance standards. Adjusted EBITDA is also a financial measurement that, with certain negotiated adjustments, is utilized within ARP’s financial covenants under its credit facility. Adjusted EBITDA and distributable cash flow are not measures of financial performance under GAAP and, accordingly, should not be considered as a substitute for net income, operating income, or cash flows from operating activities in accordance with GAAP.
 
(3) Excludes non-cash amortization of deferred financing costs.
 
(4) Represents the cash distributions declared for the respective period and paid by ARP within 45 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter. The six months ended June 30, 2012 includes a cash distribution payment of $0.12 per limited partner unit for the 1 st quarter 2012, which reflected a prorated cash distribution for the 27-day period from March 5, 2012, the date of transfer of the assets to ARP, to March 31, 2012.
 
(5)

In accordance with prevailing accounting literature, ARP 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 March 5, 2012.

 
(6)

Includes $0.2 million and $0.3 million of Pennsylvania impact fee for the three and six months ended June 30, 2011, respectively. The fee was instituted by the state of Pennsylvania subsequent to December 31, 2011 for the full year 2011. ARP allocated the fee pro rata to each of the quarterly periods for 2011.

 

ATLAS RESOURCE PARTNERS, L.P.

Hedge Position Summary

(as of August 7, 2012)

 

Natural Gas

 
 

Fixed Price Swaps

Average
Production Period Fixed Price Volumes
Ended December 31, (per mcf) (a)(b) (per mcf) (a)
2012 (c) $ 3.44 10,973,419
2013 $ 3.96 18,629,668
2014 $ 4.32 14,187,262
2015 $ 4.55 9,880,206
2016 $ 4.68 7,014,891
 

Costless Collars

     
Average Average
Production Period Floor Price Ceiling Price Volumes
Ended December 31, (per mcf) (a)(b) (per mcf) (a)(b) (per mcf) (a)
2012 (c) $ 4.45 $ 5.71 2,057,143
2013 $ 4.78 $ 5.88 5,257,143
2014 $ 4.60 $ 5.54 3,657,143
2015 $ 4.61 $ 5.55 3,314,286
 

Put Options

   
Average
Production Period Fixed Price Volumes
Ended December 31, (per mcf) (a)(b) (per mcf) (a)
2012 (c) $ 2.80 1,482,857
2013 $ 3.35 1,020,000
 

Crude Oil

 
 

Fixed Price Swaps

Average
Production Period Fixed Price Volumes
Ended December 31, (per bbl) (a) (per bbl) (a)
2012 (c) $ 103.80 13,500
2013 $ 100.67 18,600
2014 $ 97.69 36,000
2015 $ 89.50 45,000
 

Costless Collars

     
Average Average
Production Period Floor Price Ceiling Price Volumes
Ended December 31, (per bbl) (a) (per bbl) (a) (bbls) (a)
2012 (c) $ 90.00 $ 117.91 30,000
2013 $ 90.00 $ 116.40 60,000
2014 $ 84.17 $ 113.31 41,160
2015 $ 83.85 $ 110.65 29,250
 
(a)   “Mcf” represents thousand cubic feet; “bbl” represents barrel.
(b) Includes an estimated positive basis differential and Btu (British thermal units) adjustment.
(c) Reflects hedges covering the last six months of 2012.




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