Atlas Resource Partners, L.P. (NYSE: ARP) (“ARP” or “the Company”) has announced today that it has executed a definitive agreement with an affiliate of DTE Energy Company (NYSE: DTE) under which ARP will acquire DTE Gas Resources, LLC, which owns approximately 35 MMboe of proved reserves and substantial resource potential, in the Fort Worth basin in Texas for approximately $255 million. The transaction, which is expected to close in December 2012, subject to customary closing conditions and purchase price adjustments, will have an effective date of October 1, 2012. This transaction represents ARP’s third acquisition in 2012 in the Fort Worth basin. With this transaction, ARP has invested a total of approximately $625 million to acquire estimated proved reserves at the time of acquisition of over 700 Bcfe. Pursuant to this purchase, ARP is increasing its 2013 distribution guidance to a range of $2.35 to $2.50 per unit, up from the prior range of $2.30 to $2.45 per unit. Edward E. Cohen, Chief Executive Officer of ARP, commented, “This transaction is another in a series of accretive acquisitions at attractive prices. We are not finished yet. We remain committed to significantly increasing distributions to our unitholders through these and future developments.” Matthew A. Jones, President and Chief Operating Officer, added, “We are looking forward to adding the valuable oil, liquids and natural gas production from these assets, and are optimistic about the potential for continued development of the highly attractive Marble Falls play. We believe that this acquisition will further diversify our cash flow by increasing our contribution from oil and NGL production to approximately 20 percent, based on third quarter 2012 production. In addition, we expect to gain significant efficiencies in this region as our established Fort Worth team will operate and develop these assets.” This acquisition is expected to provide ARP with immediately accretive cash flow from oil and natural gas production, which averaged approximately 3,800 boe/d for 2012 year to date. Based on ARP’s internal estimates prepared as of the respective effective dates of each acquisition, ARP’s estimated pro forma net reserves are expected to increase to approximately 900 Bcfe following the transaction. Included in this transaction are approximately 88,000 net acres in the Fort Worth Basin of Texas, primarily in Jack County, offsetting ARP’s current Barnett Shale position. This acreage position includes approximately 75,000 net acres prospective for the oil and NGL rich Marble Falls play, in which there are approximately 700 identified vertical drilling locations in ARP’s position. The Company also believes that there are further potential development opportunities through vertical down-spacing and horizontal drilling in the Marble Falls formation. ARP intends to commence initial drilling operations in the Marble Falls play in early 2013.
- Estimated proved reserves of approximately 35 MMboe, including 261 gross producing wells in the Barnett Shale and Marble Falls on approximately 88,000 net acres located in Jack, Erath, Palo Pinto and Clay Counties
- 100% operated; 99% net working interest; 79% net royalty interest
- Proved reserves are 24% oil, 33% NGLs, 43% natural gas
- 2012 year to date average production of approximately 3,800 boe/d; 2013 full year average net production expected to be approximately 4,000 boe/d
- Approximately 700 identified undeveloped vertical drilling locations in the Marble Falls play
- Lease operating expenses, transportation and production taxes relating to the acquired assets of approximately $16 to $18 per boe in the most recent six months of 2012