Atlas Resource Partners, L.P. (NASDAQ:ARP) Q4 2014 Earnings Conference Call - Final Transcript

Mar 02, 2015 • 09:00 am ET


Atlas Resource Partners, L.P. (NASDAQ:ARP) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentleman and welcome to the Fourth Quarter 2014 Atlas Resource Partners, L.P. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the call over to your host for today, Mr. Brian Begley, VP of IR. Sir, you may begin.

Brian Begley

Good morning, everyone and thank you for joining us for today's call to discuss our fourth quarter and full year 2014 results. (Forward-Looking Cautionary Statements) In our Atlas Resource earnings release, we provide a GAAP reconciliation to the non-GAAP measures we refer to as our public disclosures. With that, I would like to turn the call over to our CEO, Ed Cohen for his remarks. Ed?

Ed Cohen

Thanks, Brian and hello everyone. Last Friday, that was three days ago, Atlas Energy LLP was acquired by Targa Resources. As part of a multi-billion dollar transaction, divesting Atlas' midstream pipeline and processing business to Targa. Now on Monday, three days later, I am glad to welcome all of you to the combined conference call of Atlas Resource Partners, ARP, and Atlas Energy Group LLC, AEG, Atlas Energy Group, that's the new name for the company that as an Atlas subsidiary has long been the general partner of ARP.

As a result of this spin-off, I should point out, of this general partner shares to the former unit holders of Atlas Energy which is now owned by Targa. Atlas Energy Group is the new publicly held parent company of ARP and the owner of all the other non-midstream assets owned by the old Atlas Energy, which traded as ATLS. Appropriately, Atlas Energy Group will trade on the New York Stock Exchange under the old symbol, ATLS. So once again the more it changes, some might say, the more it's the same.

In this call, I'd like to explain that we have changed the wrapper a little and have improved the product, we believe, but Atlas Resource Partners is still Atlas Resource Partners with the same general partner and the same management happily anticipating a stable and successful future even amidst the challenges of a volatile energy economy.

ARP's business model has indeed provided substantial protection from the precipitated fall in oil and gas prices, especially oil prices, during the past three months. However, substantial hedge position methodically and systematically build up over years of high prices now represents an asset with a real cash value in excess of $300 million. A buffer that will provide us with a stream of future income at levels per Mcf or barrel, considerably in excess of present spot and strip prices.

In the face of near universal industry contempt for natural gas in recent years, we did maintain our commitment to balancing gas and oil production and this balance has been helpful to us during the recent selloff. Our investment syndication