Atlas Resource Partners, L.P. (NYSE: ARP) (“ARP” or “the Company”) today has provided an update on its operations and hedging program. Including the acquisitions completed in 2012 and its current drilling plans, ARP is forecasting full year 2013 net production in a range of 51 Bcfe to 56 Bcfe, representing an increase of approximately 50% from annualized third quarter 2012 net production (based on the midpoint of the production range). The increase in production is expected to be generated primarily from further development in ARP’s oil and natural gas liquids (NGL) rich operating regions, including the Mississippi Lime, Utica Shale and the Marble Falls region in the Fort Worth Basin (TX).
Edward E. Cohen, Chief Executive Officer of ARP, stated, “Our updated 2013 guidance reflects our success in 2012 in expanding our operations through accretive acquisitions and organic development. The outlook for 2013 and thereafter continues to be favorable.”
ARP has increased its oil and gas hedge positions, further stabilizing its production cash flow. The Company has the following hedge positions for 2013:
- Natural gas: approximately 31 Bcf at an average price of $3.89/mcf (swap and collar positions, excluding basis differential), which represents approximately 90% of revenue derived from natural gas
- NGLs: approximately 165,000 bbl at an average price of $92.69/bbl (hedged heavier NGL components using WTI crude swaps)
- Crude oil: approximately 373,000 bbl at an average price of $92.30/bbl (swap and collar positions)
Based on its current operations forecast, ARP anticipates 2013 capital expenditures of approximately $175 million. The capital expenditure forecast is comprised of approximately $145 million for well drilling activities (including ARP’s investment in the partnership programs) and approximately $30 million for land acquisition and other uses. The drilling capital includes approximately $26 million in maintenance capital expenditures.
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