Atlas Energy, L.P. Reports Operating And Financial Results For The First Quarter 2014

CONTACT:

Brian J. Begley

Vice President - Investor Relations

Atlas Energy, L.P.

(877) 280-2857

(215) 405-2718 (fax)

ATLAS ENERGY, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

 (unaudited; in thousands, except per unit data)

Three Months Ended

March 31,

Revenues:

2014

2013

      Gas and oil production

$      100,825

$       46,064

      Well construction and completion

49,377

56,478

      Gathering and processing

710,980

420,087

      Administration and oversight

1,729

1,085

      Well services

5,479

4,816

      Loss on mark-to-market derivatives⁽¹⁾

(8,671)

(12,083)

      Other, net

543

5,655

          Total revenues

860,262

522,102

Costs and expenses:

      Gas and oil production

38,758

15,216

      Well construction and completion

42,936

49,112

      Gathering and processing

604,954

351,741

      Well services

2,482

2,318

      General and administrative

48,402

40,658

      Depreciation, depletion and amortization

101,278

51,666

          Total costs and expenses

838,810

510,711

Operating income

21,452

11,391

Loss on asset sales and disposal

(1,603)

(702)

Interest expense

(41,314)

(25,810)

Loss on early extinguishment of debt

—

(26,582)

Net loss before tax

(21,465)

(41,703)

Income tax benefit

398

9

Net loss

(21,067)

(41,694)

Loss attributable to non-controlling interests

7,142

29,098

Net loss attributable to common limited

       partners

$       (13,925)

$     (12,596)

Net loss attributable to common limited partners per unit:

Basic and Diluted

$          (0.27)

$        (0.25)

Weighted average common limited partner units outstanding:

Basic and Diluted

51,491

51,369

⁽¹⁾      

Consists principally of hydrocarbon derivative gains / (losses) that relate to the operating activities of ATLS's consolidated subsidiary, APL.  The underlying hydrocarbon derivatives do not represent present or potential future obligations of ATLS.

ATLAS ENERGY, L.P.

CONSOLIDATED BALANCE SHEETS

 (unaudited; in thousands)

March 31,

December 31,

ASSETS

2014

2013

Current assets:

      Cash and cash equivalents

$             24,779

$             23,501

      Accounts receivable

327,031

279,464

      Current portion of derivative asset

161

2,066

      Subscriptions receivable

−

47,692

      Prepaid expenses and other

42,213

27,612

          Total current assets

394,184

380,335

Property, plant and equipment, net

5,024,505

4,910,875

Intangible assets, net

655,679

697,234

Investment in joint venture

269,058

248,301

Goodwill, net

402,180

400,356

Long-term derivative asset

28,325

30,868

Other assets, net

124,305

124,672

$        6,898,236

$        6,792,641

LIABILITIES AND PARTNERS' CAPITAL

Current liabilities:

      Current portion of long-term debt

$               2,794

$               2,924

      Accounts payable

187,899

149,279

      Liabilities associated with drilling contracts

−

49,377

      Accrued producer liabilities

191,066

152,309

      Current portion of derivative liability

36,929

17,630

      Accrued interest

21,689

47,402

      Accrued well drilling and completion costs

72,158

40,899

      Accrued liabilities

76,475

87,435

          Total current liabilities

589,010

547,255

Long-term debt, less current portion

2,830,337

2,886,120

Deferred income taxes, net

32,892

33,290

Asset retirement obligations and other

105,629

103,100

Commitments and contingencies

Partners' Capital:

      Common limited partners' interests

345,045

361,511

      Accumulated other comprehensive income

2,140

10,338

347,185

371,849

      Non-controlling interests

2,993,183

2,851,027

Total partners' capital

3,340,368

3,222,876

$         6,898,236

$         6,792,641

ATLAS ENERGY, L.P.

Financial and Operating Highlights

(unaudited)

Three Months Ended

March 31,

2014

2013

Net loss attributable to common limited partners per unit - basic

$         (0.27)

$        (0.25)

Cash distributions paid per unit⁽¹⁾

$          0.46

$          0.31

Production volume: ⁽²⁾⁽³⁾

  ATLAS ENERGY:

Natural gas (Mcfd)

11,502

−

Oil (Bpd)

50

−

Natural gas liquids (Bpd)

31

−

Total (Mcfed)

11,991

−

  ATLAS RESOURCES:

Natural gas (Mcfd)

216,688

107,255

Oil (Bpd)

1,568

1,101

Natural gas liquids (Bpd)

3,422

3,197

Total (Mcfed)

246,628

133,039

  TOTAL:

Natural gas (Mcfd)

228,191

107,255

Oil (Bpd)

1,618

1,101

Natural gas liquids (Bpd)

3,453

3,197

Total (Mcfed)

258,619

133,039

Average sales prices:⁽³⁾

  ATLAS ENERGY:

Natural gas (per Mcf) ⁽⁴⁾

$          3.98

$               −

Oil (per Bbl)

$        82.71

$               −

Natural gas liquids (per gallon)

$          0.70

$               −

  ATLAS RESOURCES:

Natural gas (per Mcf) ⁽⁴⁾

$          4.07

$          3.33

Oil (per Bbl)⁽⁵⁾

$        87.04

$        88.89

Natural gas liquids (per gallon) ⁽⁶⁾

$          0.76

$          0.68

  TOTAL:

Natural gas (per Mcf) ⁽⁴⁾

$          4.06

$          3.33

Oil (per Bbl)⁽⁵⁾

$        86.90

$        88.89

Natural gas liquids (per gallon) ⁽⁶⁾

$          0.76

$          0.68

Production costs:⁽³⁾⁽⁷⁾

  ATLAS ENERGY:

Lease operating expenses per Mcfe

$          1.03

$               −

Production taxes per Mcfe

0.29

−

Transportation and compression expenses per Mcfe

0.50

−

Total production costs per Mcfe

$          1.82

$               −

  ATLAS RESOURCES:

Lease operating expenses per Mcfe

$          1.17

$          0.97

Production taxes per Mcfe

0.27

0.22

Transportation and compression expenses per Mcfe

0.29

0.16

Total production costs per Mcfe

$          1.73

$          1.35

  TOTAL:

Lease operating expenses per Mcfe

$          1.16

$          0.97

Production taxes per Mcfe

0.27

0.22

Transportation and compression expenses per Mcfe

0.30

0.16

Total production costs per Mcfe

$          1.74

$          1.35

ATLAS PIPELINE:

 Production volume:⁽³⁾

Gathered gas volume (Mcfd)

1,465,052

1,187,334

Processed gas volume (Mcfd)

1,366,587

1,032,865

Residue gas volume (Mcfd)

1,164,513

916,667

NGL volume (Bpd)

113,413

84,048

Condensate volume (Bpd)

4,306

3,565

Average sales prices:⁽³⁾

Natural gas (per Mcf)

$          4.75

$         3.17

Condensate (per Bbl)

$        89.05

$       86.00

Natural gas liquids (per gallon)

$          1.07

$         0.84

⁽¹⁾      

Represents the cash distributions declared per limited partner unit for the respective period and paid by ATLS within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter.

⁽²⁾      

Production quantities consist of the sum of (i) the proportionate share of production from wells in which ATLS and ARP have a direct interest, based on the 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.

⁽³⁾      

"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.

⁽⁴⁾      

ATLS' average sales price for natural gas before the effects of financial hedging was $4.49 per Mcf for the three months ended March 31, 2014, ARP's average sales prices for natural gas before the effects of financial hedging were $4.68 per Mcf and $2.90 per Mcf for the three months ended March 31, 2014 and 2013, respectively, and total average sales prices for natural gas before the effects of financial hedging were $4.67 per Mcf and $2.90 per Mcf for the three months ended March 31, 2014 and 2013, respectively. ARP's amounts exclude the impact of subordination of ARP's production revenues to investor partners within its investor partnerships.  Including the effects of this subordination, ARP's average natural gas sales prices were $3.80 per Mcf ($4.42 per Mcf before the effects of financial hedging) and $3.01 per Mcf ($2.59 per Mcf before the effects of financial hedging) for the three months ended March 31, 2014 and 2013, respectively.  Including the effect of this subordination, total average realized gas sales price was $3.81 per Mcf ($4.42 per Mcf before the effects of financial hedging) and $3.01 per Mcf ($2.59 per Mcf before the effects of financial hedging) for the three months ended March 2014 and 2013, respectively.

⁽⁵⁾      

ARP's average sales prices for oil before the effects of financial hedging were $93.18 per barrel and $90.80 per barrel for the three months ended March 31, 2014 and 2013, respectively. Total average sales prices for oil before the effects of financial hedging were $92.86 per barrel and $90.80 per barrel for the three months ended March 31, 2014 and 2013, respectively.

⁽⁶⁾      

ARP and total average sales prices for natural gas liquids before the effects of financial hedging were $0.85 per gallon and $0.68 per gallon for the three months ended March 31, 2014 and 2013, respectively.

⁽⁷⁾      

Production costs include labor to operate the wells and related equipment, repairs and maintenance, materials and supplies, property taxes, severance taxes, insurance, production overhead and transportation and compression expenses.  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, ARP's lease operating expenses per Mcfe were $1.10 per Mcfe ($1.66 per Mcfe for total production costs) and $0.90 per Mcfe ($1.27 per Mcfe for total production costs) for the three months ended March 31, 2014 and 2013, respectively. Including the effects of these costs, total lease operating expenses per Mcfe were $1.09 per Mcfe ($1.67 per Mcfe for total production costs) and $0.90 per Mcfe ($1.27 per Mcfe for total production costs) for the three months ended March 31, 2014 and 2013, respectively.

ATLAS ENERGY, L.P.

Financial Information

(unaudited; in thousands except per unit amounts)

Three Months Ended

March 31,

Reconciliation of net loss to non-GAAP measures⁽¹⁾:

2014

2013

Net loss

$       (21,067)

$     (41,694)

Atlas Resource net loss attributable to ATLS common limited partners

1,698

3,338

Atlas Resource cash distributions earned by ATLS⁽²⁾

17,497

11,637

Atlas Pipeline net (income) loss attributable to ATLS common limited partners

(2,997)

433

Atlas Pipeline cash distributions earned by ATLS⁽²⁾

9,663

7,372

Development Subsidiary net loss attributable to ATLS common limited partners

433

−

Development Subsidiary cash distributions earned by ATLS⁽²⁾

39

−

Non-recurring spinoff and acquisition costs

77

−

Amortization of deferred finance costs

495

59

Depreciation, depletion and amortization

1,582

−

Non-cash stock compensation expense

7,365

5,776

Maintenance capital expenditures⁽³⁾

(300)

−

Other non-cash adjustments

99

(168)

Loss attributable to non-controlling interests

7,142

29,098

Distributable Cash Flow⁽¹⁾

$        21,726

$      15,851

Supplemental Adjusted EBITDA and Distributable Cash Flow Summary:

Atlas Resource Cash Distributions Earned⁽²⁾:

Limited Partner Units

$        14,333

$      10,691

Class A Units (2%)

869

498

Incentive Distribution Rights

2,295

448

Total Atlas Resource Cash Distributions Earned⁽²⁾

17,497

11,637

per limited partner unit

$            0.58

$         0.51

Atlas Pipeline Cash Distributions Earned⁽²⁾:

Limited Partner Units

3,568

3,395

General Partner 2% Interest

1,127

981

Incentive Distribution Rights

4,968

2,996

Total Atlas Pipeline Cash Distributions Earned⁽²⁾

9,663

7,372

per limited partner unit

$            0.62

$         0.59

Development Subsidiary Cash Distributions Earned⁽²⁾

39

−

Total Cash Distributions Earned

27,199

19,009

Production Margin

2,279

−

Cash general and administrative expenses⁽⁴⁾

(3,924)

(2,987)

Other, net

440

5

Adjusted EBITDA⁽¹⁾

25,994

16,027

Cash interest expense⁽⁵⁾

(3,968)

(176)

Maintenance capital expenditures⁽³⁾

(300)

−

Distributable Cash Flow⁽¹⁾

$        21,726

$      15,851

Distributions Paid⁽⁶⁾

$        23,864

$      15,926

  per limited partner unit

$            0.46

$          0.31

Shortfall of distributable cash flow with discretionary   

  adjustments by the Board of Directors of the General

  Partner after distributions to unitholders⁽⁷⁾

$        (2,138)

$           (75)

⁽¹⁾

EBITDA and Distributable Cash Flow is relevant and useful because it helps ATLS' investors understand  its operating performance, allows for easier comparison of its results with other master limited partnerships ("MLP"), and is a critical component in the determination of quarterly cash distributions.  As a MLP, ATLS is required to distribute 100% of available cash, as defined in its limited partnership agreement ("Available Cash") and subject to cash reserves established by its general partner, to investors on a quarterly basis.  ATLS refers to Available Cash prior to the establishment of cash reserves as DCF.  EBITDA, Adjusted EBITDA and DCF should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity.  While ATLS's management believes that its methodology of calculating EBITDA, Adjusted EBITDA and DCF is generally consistent with the common practice of other MLPs, such metrics may not be consistent and, as such, may not be comparable to measures reported by other MLPs, who may use other adjustments related to their specific businesses.  EBITDA, Adjusted EBITDA and DCF are supplemental financial measures used by ATLS' management and by external users of ATLS' financial statements such as investors, lenders under its credit facilities, research analysts, rating agencies and others to assess its:

• Operating performance as compared to other publicly traded partnerships and other companies in the upstream and midstream energy sectors, without regard to financing methods, historical cost basis or capital structure;
• Ability to generate sufficient cash flows to support its distributions to unitholders;
• Ability to incur and service debt and fund capital expansion;
• The viability of potential acquisitions and other capital expenditure projects; and
• Ability to comply with financial covenants in its credit facility, which is calculated based upon Adjusted EBITDA.

DCF is determined by calculating EBITDA, adjusting it for non-cash, non-recurring and other items to achieve Adjusted EBITDA, and then deducting cash interest expense and maintenance capital expenditures.  ATLS defines EBITDA as net income (loss) plus the following adjustments:

• Interest expense;
• Income tax expense;
• Depreciation, depletion and amortization.

ATLS defines Adjusted EBITDA as EBITDA plus the following adjustments:

• Cash distributions paid by ARP and APL within 45 days after the end of the respective quarter, based upon their distributable cash flow generated during that quarter;
• Asset impairments;
• Acquisition and related costs;
• Non-cash stock compensation;
• (Gains) losses on asset disposal;
• Cash proceeds received from monetization of derivative transactions;
• Amortization of premiums paid on swaption derivative contracts; and
• Other items.

ATLS adjusts DCF for non-cash, non-recurring and other items for the sole purpose of evaluating its cash distribution for the quarterly period, with EBITDA and Adjusted EBITDA adjusted in the same manner for consistency.  ATLS defines DCF as Adjusted EBITDA less the following adjustments:

• Cash interest expense; and
• Maintenance capital expenditures.

⁽²⁾

Represents the cash distribution paid by ARP, APL and its new Development Subsidiary within 45 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter.

⁽³⁾

Production from oil and gas assets naturally decline in future periods and, as such, ATLS recognizes the estimated capitalized cost of stemming such decline in production margin for the purpose of stabilizing its DCF and cash distributions, which it refers to as maintenance capital expenditures.  ATLS calculates the estimate of maintenance capital expenditures by first multiplying its forecasted future full year production margin by its expected aggregate production decline of proved developed producing wells.  Maintenance capital expenditures are then the estimated capitalized cost of wells that will generate an estimated first year margin equivalent to the production margin decline, assuming such wells are connected on the first day of the calendar year.  ATLS does not incur specific capital expenditures expressly for the purpose of maintaining or increasing production margin, but such amounts are a hypothetical subset of wells it expects to drill in future periods on undeveloped acreage already leased.  Estimated capitalized cost of wells included within maintenance capital expenditures are also based upon relevant factors, including utilization of public forward commodity exchange prices, current estimates for regional pricing differentials, estimated labor and material rates and other production costs.  Generally, estimates for maintenance capital expenditures in the current year are the sum of the estimate calculated in the prior year plus estimates for the decline in production margin from wells connected during the current year and production acquired through acquisitions.  ATLS considers expansion capital expenditures to be any capital expenditure costs expended that are not maintenance capital expenditures – generally, this will include expenditures to increase, rather than maintain, production margin in future periods, as well as land, gathering and processing, and other non-drilling capital expenditures.

⁽⁴⁾

Excludes non-cash stock compensation expense and certain non-recurring spinoff costs and acquisition and related costs.

⁽⁵⁾

Excludes non-cash amortization of deferred financing costs.

⁽⁶⁾

Represents the cash distribution paid within 50 days after the end of each quarter, based upon the distributable cash flow generated during the respective quarter.

⁽⁷⁾

ATLS seeks to at least maintain its current cash distribution in future quarterly periods, and expects to only increase such cash distributions when future Distributable Cash Flow amounts allow for it and are expected to be sustained.  ATLS' determination of quarterly cash distributions and its resulting determination of the amount of excess (shortfall) those cash distributions generate in comparison to Distributable Cash Flow are based upon its assessment of numerous factors which affect it, ARP and APL and the cash distributions it receives from these subsidiaries, including but not limited to future commodity price and interest rate movements, variability of operating asset performance, weather effects, and financial leverage.  ATLS also considers its historical trailing four quarters of excess or shortfalls and future forecasted excess or shortfalls that its cash distributions generate in comparison to Distributable Cash Flow due to the variability of its Distributable Cash Flow generated each quarter, which could cause it to have more or less excess (shortfalls) generated from quarter to quarter.

ATLAS ENERGY, L.P.

CAPITALIZATION INFORMATION

(unaudited; in thousands)

March 31, 2014

Atlas

Atlas

Atlas

Energy

Resource

Pipeline

Consolidated

Total debt

$        238,800

$ 889,388

$   1,704,943

$     2,833,131

Less:  Cash

(13,058)

(1,965)

(9,756)

(24,779)

Total net debt/(cash)

225,742

887,423

1,695,187

2,808,352

Partners' capital  

347,185

1,093,990

2,345,411

      3,340,368⁽¹⁾

Total capitalization

$        572,927

$1,981,413

$    4,040,598

$    6,148,720

Ratio of net debt to capitalization

0.39x

⁽¹⁾        Net of eliminated amounts.    

December 31, 2013

Atlas

Atlas

Atlas

Energy

Resource

Pipeline

Consolidated

Total debt

$        239,400

$ 942,334

$   1,707,310

$     2,889,044

Less:  Cash

(16,759)

(1,828)

(4,914)

(23,501)

Total net debt/(cash)

222,641

940,506

1,702,396

2,865,543

Partners' capital  

371,849

1,067,291

2,259,905

      3,222,876⁽²⁾

Total capitalization

$        594,490

$2,007,797

$    3,962,301

$    6,088,419

Ratio of net debt to capitalization

0.37x

⁽²⁾        Net of eliminated amounts.    

ATLAS ENERGY, L.P.

Hedge Position Summary – Directly-Held E&P Assets

(as of May 7, 2014)

Natural Gas

Fixed Price Swaps

Average

Production Period

Fixed Price

Volumes

Ended December 31,

(per mmbtu)^(a)

(mmbtus)^(a)

  2014^(b)

$    4.18

2,070,000

2015

$    4.30

2,280,000

2016

$    4.43

1,440,000

2017

$    4.59

1,200,000

2018

$    4.80

420,000

(a)

 "mmbtu" represents million metric British thermal units.

(b)

  Reflects hedges covering the last nine months of 2014.

ATLAS ENERGY, L.P.

CONSOLIDATING STATEMENTS OF OPERATIONS

 (unaudited; in thousands)

Three Months Ended March 31, 2014

Atlas

Atlas

Atlas

Energy

Resource

Pipeline

Eliminations

Consolidated

Revenues:

      Gas and oil production

$          4,580

$        96,245

$                 −

$                 −

$      100,825

      Well construction and completion

−

49,377

−

−

49,377

      Gathering and processing

−

4,468

706,567

(55)

710,980

      Administration and oversight

−

1,729

−

−

1,729

      Well services

−

5,479

−

−

5,479

      Loss on mark-to-market derivatives

−

−

(8,671)

−

(8,671)

      Other, net

303

47

193

−

543

          Total revenues

4,883

157,345

698,089

(55)

860,262

Costs and expenses:

      Gas and oil production

1,966

36,792

−

−

38,758

      Well construction and completion

−

42,936

−

−

42,936

      Gathering and processing

−

4,413

600,596

(55)

604,954

      Well services

−

2,482

−

−

2,482

      General and administrative

14,007

16,455

17,940

−

48,402

      Depreciation, depletion and

    amortization

1,802

50,237

49,239

−

101,278

          Total costs and expenses

17,775

153,315

667,775

(55)

838,810

Operating income (loss)

(12,892)

4,030

30,314

−

21,452

Loss on asset sales and disposal

−

(1,603)

−

−

(1,603)

Interest expense

(4,463)

(13,188)

(23,663)

−

(41,314)

Loss on early extinguishment of debt

−

−

−

−

−

Net income (loss) before tax

(17,355)

(10,761)

6,651

−

(21,465)

Income tax benefit

−

−

398

−

398

Net income (loss)

(17,355)

(10,761)

7,049

−

(21,067)

  (Income) loss attributable to non-

    controlling interests

−

−

(2,462)

9,604

7,142

Net income (loss) attributable to

    common limited partners

$      (17,355)

$      (10,761)

$          4,587

$          9,604

$       (13,925)

ATLAS ENERGY, L.P.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended March 31, 2013

Atlas

Atlas

Atlas

Energy

Resource

Pipeline

Eliminations

Consolidated

Revenues:

      Gas and oil production

$                 −

$        46,064

$                 −

$                 −

$        46,064

      Well construction and completion

−

56,478

−

−

56,478

      Gathering and processing

−

3,585

416,573

(71)

420,087

      Administration and oversight

−

1,085

−

−

1,085

      Well services

−

4,816

−

−

4,816

      Loss on mark-to-market derivatives

−

−

(12,083)

−

(12,083)

      Other, net

173

20

5,462

−

5,655

          Total revenues

173

112,048

409,952

(71)

522,102

Costs and expenses:

      Gas and oil production

−

15,216

−

−

15,216

      Well construction and completion

−

49,112

−

−

49,112

      Gathering and processing

−

4,413

347,399

(71)

351,741

      Well services

−

2,318

−

−

2,318

      General and administrative

8,763

17,567

14,328

−

40,658

      Depreciation, depletion and

    amortization

−

21,208

30,458

−

51,666

          Total costs and expenses

8,763

109,834

392,185

(71)

510,711

Operating income (loss)

(8,590)

2,214

17,767

−

11,391

Loss on asset sales and disposal

−

(702)

−

−

(702)

Interest expense

(235)

(6,889)

(18,686)

−

(25,810)

Loss on early extinguishment of debt

−

−

(26,582)

−

(26,582)

Net loss before tax

(8,825)

(5,377)

(27,501)

−

(41,703)

Income tax expense

−

−

9

−

9

Net loss

(8,825)

(5,377)

(27,492)

−

(41,694)

  (Income) loss attributable to non-

    controlling interests

−

−

(1,369)

30,467

29,098

Net loss attributable to common

    limited partners

$        (8,825)

$        (5,377)

$      (28,861)

$        30,467

$       (12,596)

ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATING BALANCE SHEETS

 (unaudited; in thousands)

March 31, 2014

Atlas

Atlas

Atlas

ASSETS

Energy

Resource

Pipeline

Eliminations

Consolidated

Current assets:

      Cash and cash equivalents

$       13,058

$          1,965

$          9,756

$                 −

$          24,779

      Accounts receivable

4,193

78,127

244,711

−

327,031

      Receivable from (advances from)

          affiliates

31,502

(24,413)

(7,089)

−

−

      Current portion of derivative asset

−

161

−

−

161

      Subscriptions receivable

−

−

−

−

−

      Prepaid expenses and other

356

17,481

24,376

−

42,213

          Total current assets

49,109

73,321

271,754

−

394,184

Property, plant and equipment, net

74,003

2,125,189

2,825,313

−

5,024,505

Intangible assets, net

−

895

654,784

−

655,679

Investment in joint venture

−

−

269,058

−

269,058

Goodwill, net

−

31,784

370,396

−

402,180

Long-term derivative asset

1,367

23,749

3,209

−

28,325

Investment in subsidiaries

446,218

−

−

(446,218)

−

Other assets, net

36,396

42,554

45,355

−

124,305

$     607,093

$   2,297,492

$   4,439,869

$    (446,218)

$   6,898,236

LIABILITIES AND PARTNERS' CAPITAL

Current liabilities:

      Current portion of long-term debt

$         2,400

$                 −

$             394

$                 −

$            2,794

      Accounts payable

5,096

94,472

88,331

−

187,899

      Liabilities associated with drilling

          contracts

−

−

−

−

−

      Accrued producer liabilities

−

−

191,066

−

191,066

      Current portion of derivative liability

770

22,372

13,787

−

36,929

      Accrued interest

43

7,843

13,803

−

21,689

      Accrued well drilling and completion

          costs

5,959

66,199

−

−

72,158

      Accrued liabilities

2,898

31,118

42,459

−

76,475

          Total current liabilities

17,166

222,004

349,840

−

589,010

Long-term debt, less current portion

236,400

889,388

1,704,549

−

2,830,337

Deferred income taxes, net

−

−

32,892

−

32,892

Asset retirement obligations and other

6,342

92,110

7,177

−

105,629

Partners' Capital:

      Common limited partners' interests

345,045

1,089,092

2,277,097

(3,366,189)

345,045

      Accumulated other comprehensive

          income

2,140

4,898

−

(4,898)

2,140

347,185

1,093,990

2,277,097

(3,371,087)

347,185

      Non-controlling interests

−

−

68,314

2,924,869

2,993,183

          Total partners' capital

347,185

1,093,990

2,345,411

(446,218)

3,340,368

$     607,093

$   2,297,492

$ 4,439,869

$   (446,218)

$     6,898,236

ATLAS ENERGY, L.P.

CONDENSED CONSOLIDATING BALANCE SHEETS

 (unaudited; in thousands)

December 31, 2013

Atlas

Atlas

Atlas

ASSETS

Energy

Resource

Pipeline

Eliminations

Consolidated

Current assets:

      Cash and cash equivalents

$       16,759

$          1,828

$          4,914

$                 −

$          23,501

      Accounts receivable

1,345

58,822

219,297

−

279,464

      Receivable from (advances from)

          affiliates

29,654

(26,742)

(2,912)

−

−

      Current portion of derivative asset

1

1,891

174

−

2,066

      Subscriptions receivable

−

47,692

−

−

47,692

      Prepaid expenses and other

122

10,097

17,393

−

27,612

          Total current assets

47,881

93,588

238,866

−

380,335

Property, plant and equipment, net

65,865

2,120,818

2,724,192

−

4,910,875

Intangible assets, net

−

963

696,271

−

697,234

Investment in joint venture

−

−

248,301

−

248,301

Goodwill, net

−

31,784

368,572

−

400,356

Long-term derivative asset

1,514

27,084

2,270

−

30,868

Investment in subsidiaries

476,169

−

−

(476,169)

−

Other assets, net

35,390

42,821

46,461

−

124,672

$     626,819

$   2,317,058

$   4,324,933

$    (476,169)

$   6,792,641

LIABILITIES AND PARTNERS' CAPITAL

Current liabilities:

      Current portion of long-term debt

$         2,400

$                 −

$             524

$                 −

$            2,924

      Accounts payable

882

69,346

79,051

−

149,279

      Liabilities associated with drilling

          contracts

−

49,377

−

−

49,377

      Accrued producer liabilities

−

−

152,309

−

152,309

      Current portion of derivative liability

33

6,353

11,244

−

17,630

      Accrued interest

43

20,622

26,737

−

47,402

      Accrued well drilling and completion

          costs

418

40,481

−

−

40,899

      Accrued liabilities

9,192

30,794

47,449

−

87,435

          Total current liabilities

12,968

216,973

317,314

−

547,255

Long-term debt, less current portion

237,000

942,334

1,706,786

−

2,886,120

Deferred income taxes, net

−

−

33,290

−

33,290

Asset retirement obligations and other

5,002

90,460

7,638