Atlas Energy, L.P. reported operating and financial results for the second quarter 2012.

Second Quarter 2012 Highlights

-- Atlas Energy's E&P subsidiary, Atlas Resource Partners, L.P., recently closed two acquisitions in the Barnett Shale (TX), which added a total of approximately 527 Bcfe of net proved reserves, bringing ARP's total pro forma net proved reserves to approximately 700 Bcfe, or an increase of almost four times the amount of ARP's initial net proved reserves in March 2012. ARP reached record average net production of 62.5 Mmcfe/d for the second quarter 2012, a 57% increase from the sequential quarter and a 71% increase from the prior year quarter. Following the second quarter 2012, pro forma average net daily production reached a peak rate of approximately 102 Mmcfe/d, due to the closing of the Titan transaction in the Barnett Shale.

-- Atlas Pipeline Partners, L.P., Atlas Energy's midstream subsidiary, announced record processing volumes at each of its systems of 681 Mmcf/d and natural gas liquids (NGL) production of 61,350 bpd for the second quarter 2012.

-- ATLS declared a cash distribution of $0.25 per limited partner unit for the second quarter 2012. The second quarter 2012 distribution represents a $0.03 per unit increase, or 14%, over the prior year comparable quarter.

Edward E. Cohen, Chief Executive Officer of Atlas Energy, stated, "Both our operating subsidiaries, Atlas Resource and Atlas Pipeline, continue to execute on their substantial growth initiatives. Atlas Resource completed two accretive acquisitions to establish our new position in the Barnett Shale, and Atlas Pipeline has made significant progress on its organic growth projects to expand their systems in Oklahoma and Texas. We expect these and further positive announcements to enhance the cash flow to our subsidiaries and, ultimately, to Atlas Energy."

Financial Results

-- On June 28, 2012, ARP declared a quarterly cash distribution for the second quarter 2012 of $0.40 per unit, which is payable August 14, 2012 to holders of record as of July 12, 2012. ATLS earned approximately $8.6 million of cash distributions based upon ARP's recently announced second quarter 2012 distribution.

-- On July 17, 2012, APL declared a distribution for the second quarter of 2012 of $0.56 per common limited partner unit to holders of record on August 7, 2012, which will be paid on August 14, 2012. ATLS earned approximately $5.4 million of cash distributions based upon APL's recently announced second quarter 2012 distribution.

-- On a GAAP basis, net loss attributable to limited partners was $7.6 million for the second quarter 2012 compared to income of $16.5 million for the prior year comparable period. The loss for the second quarter 2012 is due primarily to transaction costs related to ARP's recent Barnett Shale acquisition. The net income in the prior year quarter was primarily attributable to ATLS' share of Lightfoot Capital Partners, GP LLC's recognized gain on its sale of International Resource Partners. 

Atlas Resource Second Quarter 2012 Highlights

-- Average net daily production for the second quarter 2012 was 62.5 million cubic feet equivalents per day ("Mmcfed"), an increase of approximately 23.1 Mmcfed, or 59%, compared with the first quarter 2012. The increase was primarily due to the Barnett Shale assets acquired in April 2012, as well as additional legacy Marcellus Shale wells connected in southwestern Pennsylvania during the quarter.

-- During the second quarter 2012, ARP began initial drilling on locations in the oil & natural gas liquids (NGL) rich Mississippi Lime basin in northwestern Oklahoma. ARP is currently the operating partner in a 50/50 joint venture with Equal Energy, Ltd., in which the parties will develop locations in Alfalfa, Grant and Garfield Counties in Oklahoma.

ATLS owns 100% of the general partner Class A units and the incentive distribution rights, and a 52% common limited partner interest in ARP. ATLS' financial results are presented on a consolidated basis with those of ARP. Non-controlling interests in ARP are reflected as income (expense) in ATLS' consolidated combined statements of operations and as a component of partners' capital on its consolidated combined balance sheets. A consolidating combined statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented. 

Atlas Pipeline Second Quarter 2012 Highlights

-- During the second quarter 2012, APL operated near or at nameplate capacity on all of its gathering and processing systems in the Mid Continent. APL processed approximately 681 Mmcf/d of natural gas in the second quarter 2012 amongst its WestOK, WestTX and Velma systems, almost 8% higher than the first quarter 2012 and 27% higher than the prior year comparable quarter's volumes. APL again attained record high volumes of approximately 61,350 bbl per day of gross natural gas liquids generated from APL's three processing systems in Oklahoma and Texas.

ATLS owns a 2.0% general partner interest, all of the incentive distribution rights, and a 10.5% common limited partner interest in APL. ATLS' financial results are presented on a consolidated basis with those of APL. Non-controlling interests in APL are reflected as income (expense) in ATLS' consolidated combined statements of operations and as a component of partners' capital on its consolidated combined balance sheets. A consolidating combined statement of operations and balance sheet have also been provided in the financial tables to this release for the comparable periods presented.