Atlas Resource Partners, L.P. Provides Update on Operations and Hedging Program
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.
ARP completed its fundraising for the Atlas Resources Series 32 – 2012 limited partnership program, in which it raised approximately $125 million through December 31, 2012. These funds will be deployed to develop well sites in the Marcellus Shale, Utica Shale and Mississippi Lime regions. ARP intends to raise at least $150 million in investor funds in 2013. ARP also expects to deploy approximately $190 million of investor funds in 2013, resulting in fee margin to the Company.
ARP expects full year 2013 limited partner distributions of at least $2.35 per unit, consistent with the Company's previously announced guidance.
Atlas Resource Partners, L.P. (NYSE: ARP) is an exploration & production master limited partnership which owns an interest in over 10,100 producing natural gas and oil wells, 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 44% 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 9% limited partner interest. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.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, or inaccuracies in the assumptions underlying, 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.
Vice President - Investor Relations