Organizational Structure Atlas Energy L.P. (NYSE: ATLS) Public Unitholders 53% LP(1) & 100% GP Interest 47% LP(1) Interest NYSE: ARP (1) Pro forma for both the CRZO and Titan Barnett Shale transactions 3 <
ARP: Opportunity Overview Atlas Resource Partners (NYSE: ARP) Newly formed E&P MLP with significant base of stable cash flow and identified growth opportunities Stability Growth Experience Long-lived reserve Accretive…
ARP Profile Market Capitalization 1B (39.8 MM common units outstanding)(1)(2) Debt Outstanding 105MM (250MM borrowing base on credit facility)(3) Enterprise Value 1.1B Proved Reserves 700 Bcfe net reserves(2) 1.0 Tcfe total…
The First Two Months ARP has already demonstrated its ability to provide strong value to its unitholders through accretive transactions 3/14/2012 The first day ARP units are distributed to ATLS unitholders Two days later ARP…
Balanced Approach to Risk Management & Strategic Growth Pro forma R/P Ratio of 23x Long-lived reserves Maintain Low Risk Profile Strong hedging program Substantial hedges through 2017 Fee-based income from partnerships Fundraising =…
Focused Acquisition Strategy ARP has already begun executing on its strategic plan to acquire proved natural gas & oil reserves at deep value Criteria for Strategic Acquisitions Aggressively Growth in Long-lived Minimal reserve…
Strong Initial Value Creation Recent acquisition activity at ARP has created substantial value, while maintaining financial discipline Initial Metrics: Current Metrics: 12/31/11 Pro Forma 5/21/12(1) Net Proved Reserves 167 Bcfe…
Barnett Shale Transactions ARP announced several recent acquisitions in Texass Barnett Shale for a total of approximately 374 million Both acquisitions combined to provide ARP with long-lived reserves at an average cost below…
CRZO Acquisition Assets Atlas Asset Details Chesapeake Energy Devon Energy EOG Resources Majority of the assets located in the EVEP Quicksilver Resources Core portion of the Barnett Shale Atlas Position Most assets located in the…
Titan Acquisition Asset Details Atlas Position 250 Bcfe of proved reserves; 34% PDP 84% natural gas, 16% NGLs 90% held by production Lease operating expenses and taxes of approximately 0.65/mcfe 335 potential future locations…
Mississippi Lime JV Position ARP entered into a joint venture with Equal Energy (NYSE, TSX: EQU) to acquire a 50% interest in 14,500 acres in the core of the Mississippi Lime play in northwestern OK Acreage is located in Alfalfa,…
Ohio Operations in Utica Fairway ARP Has Over 2,900 Wells In Ohio ARPs Ohio operations: Over 2,900 producing wells Long lived reserves with low decline (9 MMcf/d of gross production) Deerfield District Office ARP has existing…
Other Core Producing Assets NY Appalachia: 8,500 producing wells OH PA 35.8 Mmcfe/d of net production as of Q1 2012 Atlas is connecting 16 Marcellus wells in Q1 2012 (11 newly drilled wells + 5 re-connected); 8 turned online in March…
Partnership Management: Strong History of Growth Over 1.5B in 40 year history funds raised in of fundraising the past 5 years Partnership Management Business Over 50,000 120+ broker individual dealers selling investors…
Syndication Business Model Value to Value to Drilling Partners Atlas Resource Substantial 1st year tax deduction Upfront fees from fundraising; 15- (90% of investment) against 18% over costs paid by partners ordinary income…
Financial Overview <
Pro Forma Financial Overview Following the recent transactions, ARPs capital structure is still well-positioned to take advantage of future opportunities, while maintaining proper liquidity Pro Forma Capitalization (1) Pro Forma…
Strong Gas Hedge Position Natural Gas 20.3 19.2 ARP has significantly hedged its acquired Barnett Shale production, enhancing its 16.7 overall risk management strategy: 2.66 CRZO Transaction protected 100% 3.44 11.5 of available…
Projected Accretion to Common Unitholders The acquisition of the Barnett Shale assets will be accretive to ARP common unit distributions 2H 2012 Common Unit Distributions 2013 Common Unit Distributions 2H 2012 Accretion 2013 %…
Projected Distribution Growth Compared to its peers, ARP is projecting over 50% distribution growth from the current annualized distribution level of 1.60 per unit Source : Wells Fargo Securities Peer companies: BBEP, EVEP, LGCY,…
Comparable Peer Credit Profiles ARP intends to maintain financial flexibility to advantage of new opportunities that present themselves in the marketplace 2012E Debt / EBITDA Ratios for E&P MLP Peer Group (1) Pro forma for…
Improved Operating Efficiency ARPs lease operating expense has decreased over the last several quarters, and is expected to further improve in the future Lease operating expense has declined due to increased production in…
Pro Forma Reserve Summary The Barnett acquisitions increase ARPs proved reserves by more than four times and enhances the long-lived nature of its asset base 1,000 700 Bcfe (1) (1) Total Managed Reserves includes net…
Summary Proven business model for providing leading value to stakeholders Acquisition growth strategy in markets with significant opportunities Organic growth in high-returning regions Strong balance sheet with low leverage…
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