Atlas Energy to fund well-drilling expansion regardless of credit markets

By Jennifer Lanning Drey

Portland, Ore., Nov. 3 - Atlas Energy Resources, LLC believes its current liquidity and available access to capital through its syndicated fundraising operations will be sufficient to fund the continued expansion of its well-drilling operations if the credit markets remain unstable, Matthew A. Jones, chief financial officer of Atlas, said during the company's Monday earnings conference call.

Although still being finalized, Atlas' capital budget for 2009 is likely to focus on drilling opportunities rather than acreage expansion, Jones said.

Atlas ended the third quarter with $443 million drawn on its $698 million revolving credit facility, net of $19 million of cash on hand, Jones reported.

The company was in compliance with the related debt covenants at the end of the period and expects to be able to remain in compliance with the requirements, he said.

Total outstanding debt at Sept. 30 was $843 million.

Atlas reported third-quarter adjusted EBITDA of $80.5 million, up from $71.5 million for the third quarter of 2007. The 13% increase was primarily related to growth in Appalachian production and an increase in gross margin generated from partnership management fee sources.

Distributable cash flow for the period was $53.4 million, representing an increase of $7.6 million from the comparable period in the prior year.

Revenues increased 19%.

Atlas Energy is a Moon Township, Pa.-based developer and producer of domestic natural gas and, to a lesser extent, oil.

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