Atlas Energy 1Q16: Production Down, but Hedging Yields $3.41/Mcf

Atlas Energy logoAs MDN has previously noted, Atlas Energy has been in financial trouble for some time. Just a few years after the company sold two different tranches of their vast Marcellus assets for a cumulative $12 billion, the company’s stock was tossed off the New York Stock Exchange and relegated to the Pink Sheets as a penny stock (see Atlas Energy “Penny Stocks” Begin Trading Today on OTCQX). In February the relatively small company laid off ~125 employees (see Atlas Energy Update – 125 Layoffs Companywide). In March, the company announced they’ve rejiggered their debt–restructuring, converting some first into second liens (see Atlas Energy Rejiggers Outstanding Debt, Converts 1st to 2nd Liens). Earlier this week Atlas released its first quarter 2016 update. The company reports production has fallen–from 271 million cubic feet equivalent per day (Mmcfe/d) in 1Q15 to 237 Mmcfe/d in 1Q16–down 12.5%. They did, however, turn a nice profit on what they produced. Due to “hedging,” Atlas got $3.41 per thousand cubic feet (Mcf) for their gas in 1Q16. At the time the average Henry Hub price was around $2/Mcf. Here’s the update from Atlas…

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