PHILADELPHIA, Feb. 23, 2015 /PRNewswire/ -- Atlas
Resource Partners, L.P. (NYSE: ARP) ("ARP" or "the Company")
has announced today that its Board of Directors has declared the
January 2015 common unit cash
distribution and the Company has also provided a distribution
outlook for the full year 2015.
- ARP's Board of Directors declared a cash distribution for the
month of January 2015 of $0.1083 per limited partner unit, or $1.30 on an annualized basis. ARP expects a
distribution coverage ratio of 1.2x – 1.4x for the full year 2015
at the current distribution level, assuming current forward strip
prices for oil and natural gas.
- In addition, the Company obtained $250
million in second lien financing, which provides ARP with
enhanced liquidity and offers additional financial flexibility in
the current commodity environment.
- ARP also reached an agreement with its institutional lending
group to amend the Company's senior secured credit facility,
including the allowance of the second lien facility as well as
expanded debt covenants through the next two years.
- The Company will host its fourth quarter and full year 2015
earnings conference call on Monday, March
2nd, 2015 at 9AM
ET.
Edward E. Cohen, Chief Executive
Officer of ARP, stated, "Our revised cash distribution allows us to
provide a stable distribution with strong coverage in the current
commodity price environment. With our substantially improved
financial flexibility and liquidity, ARP is now well-positioned to
exploit strategic opportunities available in the recent market
upheaval, and to grow distributable cash flow for our
unitholders."
New Second Lien Debt Security
ARP obtained $250 million in
second lien financing which matures in 2020. The second lien will
carry an effective annual interest rate of LIBOR + 9%, and will sit
subordinate to the Company's senior secured credit facility. ARP
expects to have pro forma liquidity of approximately $225 million as a result of the new financing and
the amendment to its senior secured credit facility as described
below.
Amendment to Senior Secured Credit Facility
In order to provide additional financial flexibility as a result
of the recent commodity price environment, the Company has reached
an agreement with its institutional lending group to amend certain
terms on ARP's senior secured credit facility. The following is a
summary of the revised provisions of the credit facility:
- Modified the Maximum Leverage Ratio covenant to:
- 5.25x for Q2 2015 through Q1 2016;
- 5.00x for Q2 2016 through Q4 2016;
- 4.50x for Q1 2017; and,
- 4.00x for Q2 2017 and thereafter
- Revised the Company's borrowing base from $900 million to $750 million; the next borrowing
base redetermination will occur in July
2015
- Established a Maximum Senior Secured Leverage covenant of 3.00x
through year end 2016
The Company's leverage ratio was approximately 3.6x for the
fourth quarter 2014.
January 2015 Distribution
and 2015 Distribution Outlook
ARP's Board of Directors declared a cash distribution for the
month of January 2015 of $0.1083 per limited partner unit, or $1.30 on an annualized basis. This distribution
amount represents a reduction from the December 2014 distribution which was $0.1966 per unit, or $2.36 on an annualized basis. The revised
distribution amount was determined by ARP management and the Board
of Directors in order to improve liquidity and preserve cash flow
in the current commodity price environment. ARP expects to
establish a distribution coverage ratio of 1.2x – 1.4x for the full
year 2015 at the current distribution level, assuming current
forward strip prices for oil and natural gas. The January 2015 distribution is payable Tuesday, March 17, 2015 to holders of record as
of Tuesday, March 10, 2015.
ARP will be discussing its fourth quarter and full year 2014
results on an investor call with management on Monday, March 2, 2015 at 9:00 am Eastern Time. Interested parties are
invited to access the live webcast the investor call by going to
the Investor Relations section of Atlas Resource's website
at www.atlasresourcepartners.com. For those unavailable to
listen to the live broadcast, the replay of the webcast will be
available following the live call on the Atlas Resource website and
telephonically beginning at approximately 1:00 p.m. ET on March 2,
2015 by dialing 855-859-2056, passcode: 89716873.
Atlas Resource Partners, L.P. (NYSE: ARP) is an
exploration & production master limited partnership which owns
an interest in over 14,500 producing natural gas and oil wells,
located primarily in Appalachia, the Barnett Shale (TX), the
Mississippi Lime (OK), the Raton Basin (NM), Black Warrior Basin
(AL) and the Rangely Field in Colorado. ARP is also the
largest sponsor of natural gas and oil investment partnerships in
the U.S. For more information, please visit our website at
www.atlasresourcepartners.com, or contact Investor Relations at
InvestorRelations@atlasenergy.com.
Atlas Energy, L.P. (NYSE: ATLS) is a master limited
partnership which owns all of the general partner Class A units and
incentive distribution rights and an approximate 28% limited
partner interest in its upstream oil & gas subsidiary, Atlas
Resource Partners, L.P. Additionally, Atlas Energy owns and
operates the general partner of its midstream oil & gas
subsidiary, Atlas Pipeline Partners, L.P., through all of the
general partner interest, all the incentive distribution rights and
an approximate 6% limited partner interest. For more information,
please visit our website at www.atlasenergy.com, or contact
Investor Relations at InvestorRelations@atlasenergy.com.
Cautionary Note Regarding Forward-Looking Statements
Certain matters discussed within this press release are
forward-looking statements. Although Atlas Resource Partners, L.P.
believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. Atlas
Resource Partners does not undertake any duty to update any
statements contained herein (including any forward-looking
statements), except as required by law. This document contains
forward-looking statements that involve a number of assumptions,
risks and uncertainties that could cause actual results to differ
materially from those contained in the forward-looking statements.
ARP cautions readers that any forward-looking information is not a
guarantee of future performance. Such forward-looking
statements include, but are not limited to, statements about future
financial and operating results, resource potential, ARP's plans,
objectives, expectations and intentions and other statements that
are not historical facts. Risks, assumptions and uncertainties that
could cause actual results to materially differ from the
forward-looking statements include, but are not limited to, those
associated with general economic and business conditions; ARP's
ability to realize the benefits of its acquisitions; changes in
commodity prices; changes in the costs and results of drilling
operations; uncertainties about estimates of reserves and resource
potential; inability to obtain capital needed for operations; ARP's
level of indebtedness; changes in government environmental policies
and other environmental risks; the availability of drilling
equipment and the timing of production; tax consequences of
business transactions; and other risks, assumptions and
uncertainties detailed from time to time in ARP's reports filed
with the U.S. Securities and Exchange Commission, including
quarterly reports on Form 10-Q, current reports on Form 8-K and
annual reports on Form 10-K. Forward-looking
statements speak only as of the date hereof, and we assume no
obligation to update such statements, except as may be required by
applicable law.
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SOURCE Atlas Resource Partners, L.P.