Atlas Energy, L.P. (ATLS, Financial) last week reported its financial results for the third quarter of 2014.
Management comments
Edward E. Cohen, chief executive officer of ATLS, stated, "Our transaction with Targa should be greatly beneficial to our ATLS unit-holders. We are also enthusiastic about the birth of Atlas Energy Group, which presents an opportunity to provide substantial value to our unitholders as we have been able to accomplish in the past."
Highlights from the quarter
- Atlas Energy recently agreed to be acquired by Targa Resources Corp.
- Atlas Energy Group, LLC, a wholly owned subsidiary of Atlas Energy, has filed a Form 10 registration statement in connection with the spin-off of Atlas Energy's non-midstream assets
- Increased its cash distribution to $0.52 per unit for the third quarter 2014, a 13% increase over the prior year third quarter
- Atlas Resource Partners (ARP, Financial) generated record net daily production of approximately 286.1 million cubic feet equivalents per day for the third quarter 2014, a 9% increase over the second quarter 2014
Major happenings in the quarter
Last month, ARP issued an additional $75 million of its 9.25% Senior Notes due 2021 in a private placement transaction at 100.5% of par. ARP used the net proceeds from this offering to fund a portion of its previously announced acquisition of primarily oil assets in the Eagle Ford shale in south Texas. The senior notes are subject to a registration rights agreement entered in connection with the transaction, which requires ARP, among other things, to file a registration statement with the SEC and exchange the privately placed notes for registered notes by certain dates.
Some of the highlights from the quarter include:
- ATLS declared a cash distribution of $0.52 per limited partner unit for the third quarter 2014, which represents a $0.06 per unit, or a 6%, increase over the prior year third quarter. The third quarter 2014 ATLS distribution will be paid on November 20, 2014to holders of record as of November 10, 2014.
- ARP paid monthly cash distributions totaling $0.59 per limited partner unit for the third quarter 2014, an approximate 5% increase over the prior year third quarter distribution. The most recent ARP monthly distribution of $0.1966 per unit ($2.36 per unit on an annual basis) for September 2014 will be paid on November 14, 2014 to holders of record as of November 10, 2014. ATLS will have received approximately $18.7 million of cash distributions from ARP after receipt of the September distribution in the third quarter 2014.
To conclude
The company has performed quite well for the last few quarters. If we look at the last quarter, the company averaged a brilliant 286.1 million cubic feet for net daily productions. The increase in net production as compared with second quarter 2014 was due primarily to production from the Rangely Field assets, which were acquired on June 30, 2014. The way the company has performed in the last few quarters, it wouldn’t be a bad idea to put one’s money on the ARP stock.
