Is Atlas Energy Group LLC (OTCMKTS: ATLS) Making A Comeback?


Atlas Energy Group LLC (OTCMKTS: ATLS)’s operating and financial update for 1Q2016 provided highlight about the incomes the company received from its various subsidiaries and how its financials changed over a period of one year. Although lower commodity prices remains a major source of pressure on Atlas’ financial performance, austerity measures are helping ease those pressures as cash flow improved in the last quarter relative to a year ago.

What transpired in 1Q2016?

Atlas Energy Group LLC (OTCMKTS: ATLS) said it received about $0.6 million from its subsidiary called Atlas Growth Partners, L.P. (AGP) during 1Q2016. The amount received from AGP was for management fees and cash distribution.

It is worth pointing out that AGP recently filed for its IPO.

The other source of income for Atlas during 1Q2016 was cash distribution from Arc Logistics Partners, LP (NYSE: ARCX). Atlas Energy Group LLC (OTCMKTS: ATLS) owns 12% of ARCX’s limited partner interest and 16% of its general partner interest. ARCX contributed $0.5 million to Atlas during 1Q2016.

Atlas Energy Group LLC (OTCMKTS: ATLS) also received $0.025 per unit in Atlas Resource Partners, L.P. (NYSE: ARP) during 1Q2016 for its stake in the firm. However, ARP later announced halting of its monthly cash distribution to enable it cope with the problem of lower commodity prices.

The bottom-line for Atlas Energy Group LLC (OTCMKTS: ATLS)

Atlas Energy Group LLC (OTCMKTS: ATLS) posted a net loss of about $1.3 million for 1Q2016, better than a net loss of $297.4 million in 4Q2015 but worse than a net income of $53.5 million in the corresponding quarter a year ago.

The company also finished the quarter with distributable cash flow of $0.5 million or $0.02 per share in 1Q2016. It posted a negative distributed cash flow of $0.1 million in the like quarter a year ago.

Lower oil prices

To help tackle the problem of weak commodity prices, major oil producers are expected to meet next month to discuss possible output cut. Global crude oil prices have been doused by a supply glut, a problem that has been exacerbated by the return of Iran to the global oil market following the lifting of economic sanctions against it.


Leave A Reply