Investor Presentation EnerCom The Oil & Gas Conference August 14, 2013
Atlas Energy A Different Kind of Company Only MLP with general partner (GP) interests in both E&P and Midstream assets (ARP & APL) Incentive Distribution Rights (IDRs) Subsidiaries are self-financed with strong coverage Provide…
Company Overview Atlas Energy, L.P. (NYSE: ATLS) Enterprise value: 2.9 billion Market capitalization: 2.7 billion Net Debt: 190 million GP to two MLP subsidiaries Atlas Resource Partners, L.P. (NYSE: ARP): E&P subsidiary Atlas…
ATLS Distribution Growth 3.00 2.50 50% 2.50 - 2.80 2.00 Distribution / Unit 1.70 - 1.50 2.00 1.76 1.00 0.50 0.00 Current Annualized FY 2013 Distribution FY 2014 Distribution Distribution Guidance Guidance…
Unique Growth Potential Multiple growth levers Separate GP interests in expanding subsidiaries Expansion through both organic growth & acquisitions Organic growth ARP - Development with solid IRRs: MS Lime, Utica, Marcellus, Marble…
Overview of the Atlas Companies Owns 100% of general partner interest of both subsidiaries: ARP & APL Receives cash distributions from LP interests and incentive distribution rights as GP: ATLS participated in the EP Energy…
ARP and APL: Recent Acquisitions Acquisitions typically financed with 50-70% equity, preserving conservative capital structures Date Seller Purchase Price Financing March 2012 187MM 65% Equity Recent ARP transactions May 2012…
Highly Diversified Pro Forma Cash Flow Profile (1) (2) Commodity Commodity Commodity Fee Based and Hedged sensitive 18% sensitive 8% sensitive 15% Revenue Profile Provides De-Risking from Commodity Based Hedged / Fee Hedged…
ATLAS PIPELINE PARTNERS 11
Atlas Pipeline Operational Snapshot 1 4 Arkoma System West OK System Geographic Area: Woodford Shale/Ardmore Basin Geographic Area: Anadarko Basin/Mississippi Lime Processing Capacity: 220 mmcfd Processing Capacity: 458 MMcfd 1…
Atlas Pipeline has a Strong Business Expansion Track Record System Previous Expansion New Timing Comment Capacity Capacity Velma 100 mmcfd 60 mmcfd 160 mmcfd Online now Expansion is contracted full starting in July 2013 WestOK 258…
APL: Significant Expansion in Leading Basins 2,200 2,093 1,650 1,493 1,093 1,100 583 613 550 0 2010 2011 2012 2013** 2014** Processing Capacity Increases over 250% from 2011 to 2014 APLs strategic acquisitions and…
ATLAS RESOURCE PARTNERS 15
ARP: A Different Approach Long-lived reserves in desirable basins with high IRRs Strong Foundation of Multiple potential drilling locations largely held by production E&P Assets Highly-skilled senior management team with extensive US…
ARP Business Model: Scalable, Low-Risk, High Return Operate in high IRR basins: Barnett Shale / Marble Falls, Mississippi Lime, Utica Shale, Marcellus Shale, Raton, Black Warrior 1.4 Tcfe of net proved reserves(1) Current average…
ARP Asset Overview ARP Asset Summary(1) 54% Increase in proved reserves 1.4 Tcfe proved reserves 81% gas 64% developed 252 Mmcfe/d production 89% Increase in net production 90% gas Pennsylvania/ W VA Marcellus Shale County…
ARP: Growth in Net Production 300 270 ARPs net production has Net Production per Day 240 grown over 6.5x since 210 March 2012 180 150 120 260 90 60 30 39 - March 2012 (IPO) Current Production Accretive acquisitions…
Fee-Based Partnership Business Model Value to Atlas Resource Partners Value to Drilling Partners Upfront fees from fundraising; Substantial 1st year tax deduction 15% over costs paid by partners (90-100% of investment) against…
Marble Falls Detail Acquired in December 2012 from DTE Energy 88,000 net acres in Jack, Clay, Denton, Wise, Erath, Parker, Hood and Palo Pinto Counties in Texas 75,000 net acres, primarily concentrated in Jack County Close…
Mississippi Lime Detail 20,000 net acres in the core of the Mississippi Lime play in northwestern OK Acreage is located in Alfalfa, Grant and Garfield counties; oil & liquids rich portion of the play ARP Position is held by…
Utica Shale Detail Legacy Ohio operations: Trumbull County Site 2,500 producing shallow wells Columbiana Co. Long lived reserves with low decline site Stark County Site ARP controls 5,500 net acres prospective for the Utica…
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APPENDIX I: ATLS DETAIL 25
ATLS: EP Energy Transaction ATLS supported a highly strategic acquisition at ARP ARP acquired oil and gas assets in the Raton, Black Warrior and County Line basins from EP Energy for 733 million ATLS investment in ARP preferred stock…
Arkoma Detail(1) Acquired by Atlas Energy Kansas Missouri 106,600 net acres with 63% average working interest 97% operated May 2013 monthly average production of 13 Oklahoma Arkansas Mmcfe/d 44 Bcfe of proved reserves, 100% PDP…
Low Leverage Relative to Peers Net Debt / EBITDA Debt / Capitalization 56.9% 6.0x 5.4x 46.7% 44.0% 4.0x 32.9% 3.7x 3.0x 26.4% 2.1x 8.8% PF ATLS(1) PF ATLS(1) Company A Company D Company D…
APPENDIX II: ARP SEGMENT DETAIL 29
Diversified Geographic Presence and Lower-Risk Reserves The addition of sizable positions in the Raton and Black Warrior provide ARP with robust geographic coverage and lower-risk reserves Also opens up a broader opportunity set of…
Marcellus Shale Detail 3,000 net Marcellus acres in Lycoming County Recently completed 8 horizontal wells, including 131 frac stages (scheduled for production in early Q3 2013) Average initial flow rates of 20 MMcf/d per well Up…
Barnett Shale Detail Majority of the assets located in the Core portion of the Barnett Shale 60 Mmcfe/d of current production 560 Bcfe of proved reserves(1) 93% gas, 7% NGLs & Oil(1) 94% of all Barnett Shale acreage is held by…
EP Acquisition Overview Atlas Resource Partners, LP (ARP) acquired certain natural gas assets from EP Energy for 733 million This acquisition is transformative for ARP: Immediately accretive: transaction will increase future cash…
Acquired Asset Summary Expansive asset position with low decline Total ARP asset statistics (1) ATLS Arkoma asset statistics (1) 466 bcf proved reserves 45 Bcfe proved reserves 100% gas 100% gas 93% proved developed 100% proved…
Raton Detail(1) Direct mineral ownership of 605,000 net acres 94% Net Revenue Interest CO 100% operated NM Shallow base decline, low opex and Taos maintenance capex May 2013 monthly average production of Colfax 76…
Attractive Production Decline Profile ARPs stability of cash flows is significantly enhanced as a result of the EP acquisition The acquired assets have a decline profile of 8 10% ARPs pro forma decline profile will improve to 11%…
Black Warrior Detail(1) Stable production profile, low base Tennessee decline, long R/P, base optimization and future drilling opportunities Mississippi Alabama Georgia Lost Creek 82% operated White Oak Creek Walker May 2013…
County Line Detail(1) County Line WY 5,832 net acres (non- operated) in Johnson County, Wyoming 5 Mmcf/d production Johnson County, WY Atlas Acreage 38 (1) Based on internal reserve and production estimates prepared in…
Predominantly Hedged Cash Flows Natural Gas (1) Disciplined and comprehensive 4.22 5.12 hedge strategy enhances the 35 4.40 4.23 Puts 5.44 Collars stability of ARPs future cash flow 30 5.13 Volume Hedged (Bcf) Swaps…
APPENDIX III: APL SEGMENT DETAIL 40
APL Significant Cash Flow Stability APL Current Contract Mix TEAK Current Contract Mix Pro Forma Contract Mix Keep- Keep- Whole Percent of Whole Fixed 13% Proceeds/ 16% Fee Liquids Fixed 33% 20% Fee 43% Percent of Fixed…
APL Hedging Overview Gross Margin Coverage for remaining 2013 is 82% including Hedges and Fee Business Unhedged 4% Keep-Whole Hedged 14% 10% 82% of run-rate Gross Margin is under Fixed Fee arrangement or Hedged to Limit Commodity…
SouthTX Operational Snapshot Overview SouthTX System Map Silver Oak Plant Complex Key Producers Geographical Area: Eagle Ford Shale Low Pressure Gas Gathering Proposed Gas Gathering Miles of Pipeline: Approx. 500 High Pressure Gas…
WestOK Operational Snapshot Overview WestOK System Geographical Area: Anadarko Basin / Mississippi Lime Miles of Pipeline: Approx. 5,400 Processing Capacity: 458,000 Mcfd Number of Rigs Running: 27 Average Processed Volume (mcfd)…
Velma Operational Snapshot Overview Velma System Geographical Area: Woodford Shale/Ardmore Basin Miles of Pipeline: Approx. 1,200 Processing Capacity: 160,000 mcfd Number of Rigs Running: 13 Average Processed Volume (mcfd) 140,000…
Arkoma Operational Snapshot Overview Arkoma System Geographical Area: Woodford Shale/Arkoma Basin Seminole Miles of Pipeline: Approx. 100 Grady Pottawatomie Caddo McClain Hughes Processing Capacity: 220,000 Mcfd (gross) Pittsburg…
WestTX Operational Snapshot Overview WestTX System Geographical Area: Permian Basin Miles of Pipeline: Approx. 3,300 Current Processing Capacity: 455,000 Mcfd Number of Rigs Running: 66 Average Processed Volume (mcfd) 300,000…
West Texas LPG NGL Pipeline Operational Snapshot Overview West Texas LPG Geographical Area: Permian Basin, Barnett Shale Miles of Pipeline: Approx. 2,200 Transportation Capacity: 230,000 bbls/day Delivery to: Mont Belvieu Average…
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