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Ohio Utica Shale

Atlas Resources connects first Utica wells in Harrison County

By Bob Downing Published: November 12, 2013

From Atlas Resources Partners:


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  • Atlas Resource Partners’ (ARP) average net production for the third quarter 2013 reached a record of 261.4 MMcfed, a 96% increase from the prior quarter, due primarily to newly acquired producing reserves in the Raton and Black Warrior Basins
  • Adjusted earnings before interest, income taxes, depreciation and amortization (“adjusted EBITDA”), including discretionary adjustments by the Board of Directors of the General Partner, was $60.7 million(1) for the third quarter 2013
  • Average daily oil production increased by approximately 20% from the prior quarter, mainly from ARP’s continued development in the Marble Falls and Mississippi Lime
  • ARP’s newly drilled Marcellus Shale wells continue their tremendous results, currently sustaining production rates at maximum allowable capacity
  • ARP’s Raton and Black Warrior Basin assets continue to generate strong benefits for the company from stable, low-cost production
  • Development begins on newly identified productive zones for additional oil reserves in the Marble Falls play
  • ARP increased its quarterly distribution to $0.56 per limited partner unit for the third quarter 2013, a 4% increase from the second quarter 2013 and a 30% increase from the prior year quarter, on approximately 1.1x distribution coverage for the period
  • ARP to discuss third quarter 2013 financial and operational results on a conference call at 9AM ET on Friday, November 8th


PHILADELPHIA--(BUSINESS WIRE)--Nov. 7, 2013-- Atlas Resource Partners, L.P. (NYSE: ARP) (“ARP” or “the Company”) has reported operating and financial results for the third quarter 2013.

Matthew A. Jones, President of ARP, said, “Our results this quarter continue the substantial growth our company has experienced over just a short period of time. Having expanded our operations through accretive acquisitions and by the drillbit over the past year and a half, we have significantly grown our proved reserves (+700%) and distributions to unitholders (+40%) over that time. Our drilling activities have been strong, exemplified by the tremendous results from our recently completed Marcellus Shale wells. Now, our enterprise is the strongest it’s been -- both in asset diversification and our ability to increase cash flow.”

  • ARP generated adjusted earnings before interest, income taxes, depreciation and amortization (“adjusted EBITDA”), including discretionary adjustments by the Board of Directors of the General Partner, of $60.7 million(1) for the third quarter 2013;
  • On a GAAP basis, net loss was $39.7 million for the third quarter 2013 compared to a net loss of $10.1 million for the prior year comparable period. The loss for each period was caused principally by non-cash expenses, including depreciation, depletion and non-cash compensation expense.
  • ARP declared a cash distribution of $0.56 per limited partner unit for the third quarter 2013, an approximate 4% increase, over the second quarter 2013 and a 30% increase from the prior year third quarter distribution. The third quarter 2013 ARP distribution will be paid on November 14, 2013 to holders of record as of November 6, 2013. ARP expects to distribute between $0.58 and $0.62 per unit for the fourth quarter 2013, and also expects full year 2014 distributions to be in a range of $2.40 to $2.60 per unit.

(1) Please see footnote 11 to the Financial Information table on page 10 of this release.

E&P Operating Highlights

  • Average net daily production for the third quarter 2013 was a record 261.4 million cubic feet of natural gas equivalents per day (“Mmcfed”), an increase of approximately 96% from the second quarter 2013. The increase in net production from the second quarter 2013 was due primarily to the recently acquired producing assets from EP Energy in July 2013, located in the Raton Basin (New Mexico), Black Warrior Basin (Alabama) and County Line region (Wyoming). Production also increased from additional wells connected in the third quarter in several of ARP’s key operating areas, including the Marcellus Shale, Utica Shale, Marble Falls and Mississippi Lime.
  • During the third quarter 2013, ARP connected eight horizontal Marcellus Shale wells located in Lycoming County, PA, which demonstrated exceptionally strong initial flow rates. Despite limitations of infrastructure that have inhibited operation at full capacity, total gross daily production from the eight wells reached maximum pipeline capacity of approximately 62 million cubic feet per day (“Mmcfd”). The characteristics of these well sites are highly favorable compared to other wells in the region due to: the thickness and depth of the shale in the area, level of porosity (~10-14%), permeability (up to 400 nD), TOC (up to 6%), and a high pressure gradient (~0.89 psi/ft).
  • In September 2013, ARP began connecting its five initial wells drilled in the Utica-Point Pleasant formation in northern Harrison County, OH. Early results indicated higher levels of high-grade condensate than originally expected. Midstream service in the Utica Shale has been disrupted due to a processing plant fire which occurred in late September 2013. Nonetheless, ARP has been able to flow limited amount of production from these wells and is in the process of identifying additional third-party capacity in order to optimize production.
  • ARP has drilled over 40 wells to date in the oil and liquids rich Marble Falls play, primarily in Jack County, TX in which the Company holds approximately 75,000 net acres. ARP has now identified additional productive zones located above and below the Marble Falls play, including the Caddo formation, Bend conglomerates and Chappel Reefs. Early testing of these formations has yielded initial production rates of 100-300 barrels of oil per day. Additional 3-D seismic is being undertaken to further develop these formations in conjunction with the Marble Falls.



See the most recent drilling report and an injection wells map From
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Utica and Marcellus shale web sites

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Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

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