Atlas Energy Resources, LLC Reports Record Financial Results for the First Quarter...

Atlas Energy Resources, LLC Reports Record Financial Results for the First Quarter 2008

PITTSBURGH--(Business Wire)--
Atlas Energy Resources, LLC (NYSE:ATN) (the "Company") today
reported financial results for the first quarter 2008.

The highlights of the results of the first quarter 2008 include:

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-- Adjusted earnings before interest, income taxes, depreciation and
amortization ("EBITDA"), a non-GAAP measure, of $79.0 million, as
compared with $27.3 million for the first quarter 2007, an
increase of $51.7 million, or approximately 189%. The increase
over the prior year was primarily related to the addition of the
Company's Michigan segment operations, growth in Appalachian
production approximating 26% and a 30% increase in gross margin
generated from partnership management fee sources. A
reconciliation from net income to Adjusted EBITDA is provided in
the financial tables of this release;

-- Distributable cash flow of $53.5 million, an increase of $35.4
million, or 196%, compared to the prior year quarter, and an
increase of $7.7 million, or 17%, compared to the fourth quarter
2007. A reconciliation from net income to distributable cash flow
is provided in the financial tables of this release;

-- Net income of $37.5 million, an increase of $17.6 million, or
approximately 88%, over the prior year comparable period;

-- Revenues of $194.6 million, an increase of $89.4 million, or
approximately 85%, compared to the first quarter 2007.
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Based on the financial results for the first quarter 2008, the
Company declared a record quarterly cash distribution of $0.59 per
unit for the period. This distribution reflects an approximate 37%
increase compared to the first quarter 2007, which was the Company's
first full quarter of operations following its initial public offering
in December 2006. This quarter's distribution will be paid on May 15,
2008 to unitholders of record as of May 7, 2008. In addition, the
Company has increased its distribution coverage ratio to 1.4x for the
current quarter compared with a 1.3x distribution coverage ratio for
the fourth quarter 2007 and a 1.1x coverage ratio for the first
quarter 2007.

First Quarter 2008 Operating Highlights

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-- Atlas Energy continued to expand its acreage position and
development activities in the Marcellus Shale:

-- The Company has drilled 52 vertical and one horizontal
Marcellus Shale wells to date and is currently producing 34
vertical wells and one horizontal well into a pipeline (18
wells are waiting on completion);

-- Atlas Energy currently controls approximately 516,000 Marcellus
acres in Pennsylvania, New York and West Virginia, of which
approximately 242,000 of these acres are located in the
Company's core Marcellus Shale position in southwestern
Pennsylvania;

-- The Company continues to realize average peak production rates
(24 hours into a pipeline) of over one million cubic feet
("Mmcf") per day, with its best wells having initial peak
rates of over 2 Mmcf per day.

-- Net natural gas production in Appalachia increased over 26% to
approximately 32.7 million cubic feet equivalents ("Mmcfe") per
day compared to the prior year first quarter due primarily to the
Company's expanding drilling programs and increasing production
from the Marcellus Shale;

-- Gross margin from partnership management fee sources increased
approximately 30% in the first quarter 2008 compared to the prior
year first quarter;

-- The Company began fundraising for Atlas Energy's Public #17-2007
(B) drilling program, which is targeted to raise approximately
$236 million in investor funds, representing the Company's largest
individual fundraising to date;

-- At March 31, 2008, the Company held a total acreage position of
approximately 1,102,000 net acres, of which 614,000 are
undeveloped, an increase of 87% from the net acreage position at
March 31, 2007 and a 12% increase from December 31, 2007.
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Appalachia Segment Results

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-- The Company drilled 250 gross wells in Appalachia during the first
quarter 2008, including 30 wells drilled into the Marcellus Shale.
The Company connected 271 wells to its gathering systems during
the first quarter 2008, compared to 197 wells in the first quarter
2007.

-- Gross margin from partnership management fee sources increased by
30% in the first quarter 2008 compared to the prior year first
quarter, resulting from increases in well construction revenues,
well servicing revenues and administrative and oversight fees.

-- Natural gas and oil production in the Appalachian segment was
approximately 32.7 Mmcfe per day for first quarter 2008, an
increase of 6.8 Mmcfe per day from the first quarter 2007.

-- As of March 31, 2008, the Company held approximately 827,000 net
acres in the Appalachian Basin, of which approximately 571,000
acres were undeveloped, an increase of 28% from the net acreage
position at March 31, 2007 and a 10% increase from December 31,
2007.

-- As of March 31, 2008, the Company had identified approximately
3,743 geologically favorable shallow drilling locations on its
acreage in the Appalachian Basin, which does not include any
locations prospective for the Marcellus Shale, and had an interest
in approximately 8,500 gross producing wells in Appalachia, of
which it operated approximately 85%.
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Michigan Segment Results

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-- The Company drilled 46 gross wells and connected 54 wells in
Michigan during the first quarter 2008.

-- Natural gas and oil production in the Michigan segment was 59.1
Mmcfe per day for the first quarter 2008.

-- At March 31, 2008, the Company had approximately 275,000 net acres
in the Antrim Shale in Michigan, of which approximately 43,000
acres were undeveloped. On this acreage, the Company had
approximately 756 drilling locations in the Antrim Shale, almost
all of which were proved infill locations.

-- As of March 31, 2008, the Company had an interest in approximately
2,347 gross wells in Michigan, of which it operated approximately
76%.
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Hedging Summary

The Company entered into additional hedging contracts in the
current period for its natural gas and oil production. A summary of
the Company's aggregate hedge positions as of March 31, 2008 are as
follows:

Natural Gas

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Fixed Price Swaps
-------------------
Average
Production Period Hedge Price (1) (3) Percentage
Ended December 31, (per mcf) Hedged (2)
------------------- ------------------- -----------
2008 $9.01 79%
2009 $8.91 81%
2010 $8.41 57%
2011 $8.03 45%
2012 $8.07 33%
2013 $9.09 3%
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Costless Collars
------------------
Average Average
Production Period Hedge Floor (1) Hedge Ceiling (1) Percentage
(3) (3)
Ended December 31, (per mcf) (per mcf) Hedged (2)
------------------ --------------- -------------------- ----------
2008 $ 8.36 $ 10.37 2%
2009 - - -
2010 $ 8.66 $ 9.71 3%
2011 $ 8.38 $ 9.39 8%
2012 $ 7.86 $ 9.31 1%
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Crude Oil

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Fixed Price Swaps
------------------
Average
Production Period Hedge Price (1) Percentage
Ended December 31, (per bbl) Hedged (2)
------------------ --------------- ----------
2008 $ 104.38 37%
2009 $ 99.91 30%
2010 $ 97.31 25%
2011 $ 96.39 22%
2012 $ 96.00 18%
2013 $ 96.06 4%
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Costless Collars
------------------
Average Average
Production Period Hedge Floor (1) Hedge Ceiling (1) Percentage
Ended December 31, (per bbl) (per bbl) Hedged (2)
------------------ --------------- ----------------- ----------
2008 $ 85.00 $ 126.80 21%
2009 $ 85.00 $ 118.07 18%
2010 $ 85.00 $ 112.72 16%
2011 $ 85.00 $ 110.72 14%
2012 $ 85.00 $ 110.05 11%
2013 $ 85.00 $ 110.09 2%
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(1) "Mcf" represents thousand cubic feet; "Bbl" represents barrel.

(2) Percentages hedged are based on:

Natural Gas: a) for Appalachia, actual first quarter 2008
natural gas production, and b) for Michigan, previously
provided natural gas production guidance for full year 2008.
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Crude Oil: actual first quarter 2008 crude oil production.
------------------------------------------------------------------

(3) Includes an estimated positive basis differential and Btu
adjustment
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Interested parties are invited to access the live webcast of the
Company's first quarter 2008 results on Thursday, May 1, 2008 at 9:00
am ET by going to the Investor Relations section of the Company's
website at www.atlasenergyresources.com. An audio replay of the
conference call will also be available beginning at 11:00 am ET on
Thursday, May 1, 2008. To access the replay, dial 1-888-286-8010 and
enter conference code 67556163.

Atlas Energy Resources, LLC develops and produces domestic natural
gas and to a lesser extent, oil. The Company is one of the largest
independent energy producers in the Appalachian Basin and northern
Michigan. The Company sponsors and manages tax-advantaged investment
partnerships, in which it co-invests, to finance the exploration and
development of its acreage in the Appalachian Basin. The Company is
active principally in Pennsylvania, Michigan and Tennessee. For more
information, visit the Company's website at
www.atlasenergyresources.com or contact investor relations at
bbegley@atlasamerica.com.

On February 1, 2008, Atlas Energy's Post-Effective Amendment No. 1
to the Atlas Resources Public #17-2007 Drilling Program Registration
Statement became effective with the Securities and Exchange
Commission. The second partnership in the program (Atlas Resources
Public #17-2008(B) L.P.) is offering units representing up to $236
million. Atlas Energy's subsidiary serves as managing general partner
of the partnership. A written prospectus meeting the requirements of
Section 10 of the Securities Act may be obtained from Anthem
Securities, Inc. (a subsidiary of Atlas Energy), 1550 Coraopolis
Heights Rd. - 2nd Floor, Moon Township, PA 15108.

Atlas America, Inc. (NASDAQ:ATLS) owns an approximate 64% limited
partner interest in Atlas Pipeline Holdings, L.P. (NYSE:AHD), which
holds the general partner interest and 5.5 million limited partner
units of Atlas Pipeline Partners, L.P. (NYSE:APL), and an approximate
48% common unit interest and all of the Class A and management
incentive interests in Atlas Energy Resources, LLC. For more
information, please visit Atlas America's website at
www.atlasamerica.com, or contact Investor Relations at
bbegley@atlasamerica.com.

Atlas Pipeline Partners, L.P. is active in the transmission,
gathering and processing segments of the midstream natural gas
industry. In the Mid-Continent region of Oklahoma, Arkansas, northern
and western Texas and the Texas panhandle, the Partnership owns and
operates eight gas processing plants and a treating facility, as well
as approximately 7,900 miles of active intrastate gas gathering
pipeline and a 565-mile interstate natural gas pipeline. In
Appalachia, it owns and operates approximately 1,600 miles of natural
gas gathering pipelines in western Pennsylvania, western New York and
eastern Ohio. For more information, visit Atlas Pipeline's website at
www.atlaspipelinepartners.com or contact
bbegley@atlaspipelinepartners.com.

Atlas Pipeline Holdings, L.P. is a limited partnership which owns
and operates the general partner of Atlas Pipeline Partners, L.P.,
through which it owns a 2% general partner interest, all the incentive
distribution rights and approximately 5.5 million common units of
Atlas Pipeline Partners, L.P.

Certain matters discussed within this press release are
forward-looking statements. Although Atlas Energy Resources, LLC
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. Factors that could cause actual results
to differ materially from expectations include financial performance,
regulatory changes, changes in local or national economic conditions
and other risks detailed from time to time in Atlas Energy's reports
filed with the SEC, including quarterly reports on Form 10-Q, reports
on Form 8-K and annual reports on Form 10-K.

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ATLAS ENERGY RESOURCES, LLC
Financial Summary
(in thousands, except per unit data)

Three Months Ended
March 31,
-------------------
2008 2007
--------- ---------
REVENUES
Well construction and completion $104,138 $ 72,378
Gas and oil production 76,226 21,260
Administration and oversight 5,017 4,544
Well services 4,798 3,721
Gathering 4,410 3,288
--------- ---------
Total revenues 194,589 105,191
--------- ---------

COSTS AND EXPENSES
Well construction and completion 90,555 62,932
Gas and oil production 13,081 3,902
Well services 2,412 2,043
Gathering fees 4,123 3,288
General and administrative 11,792 6,899
Depreciation, depletion and amortization 21,810 5,868
--------- ---------
Total costs and expenses 143,773 84,932
--------- ---------

OPERATING INCOME 50,816 20,259

OTHER INCOME (EXPENSE):
Interest expense (13,305) (410)
Other - net 32 92
--------- ---------
Total other income (expense) (13,273) (318)
--------- ---------

Net income $ 37,543 $ 19,941
========= =========

Allocation of net income attributable to members'
interests:
Class A units $ 1,954 $ 399
Class B common units 35,589 19,542
--------- ---------
Net income attributable to members' interests $ 37,543 $ 19,941
========= =========

Net income per Class B common:
Basic $ 0.59 $ 0.53
========= =========
Diluted $ 0.58 $ 0.53
========= =========

Weighted Average Class B common:
Basic 60,711 36,627
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Diluted 61,234 36,967
========= =========
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March 31, December 31,
2008 2007
---------- ------------
Balance Sheet Data (at period end):
----------------------------------------------
Cash and cash equivalents $ 7,612 $ 25,258
Property and equipment, net 1,733,037 1,693,467
Total assets 1,909,402 1,891,234
Total debt 829,022 740,030
Total members' equity 731,393 836,115
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ATLAS ENERGY RESOURCES, LLC
Financial Information
(in thousands)

Three Months Ended
March 31,
--------------------
2008 2007
----------- --------
Capital Expenditure data:
Maintenance capital expenditures $ 12,975 $ 8,750
Expansion capital expenditures 42,642 13,327
----------- --------
Total $ 55,617 $22,077
=========== ========

Reconciliation of net income to non-GAAP
measures(1):
Net income $ 37,543 $19,941
Depreciation and amortization 21,810 5,868
Interest expense 13,305 410
----------- --------
EBITDA 72,658 26,219
Adjustment to reflect cash impact of
derivatives (2) 5,028 --
Non-cash compensation expense 1,320 1,045
----------- --------
Adjusted EBITDA 79,006 27,264
Interest expense (13,305) (410)
Amortization of deferred financing costs 770 13
Maintenance capital expenditures (12,975) (8,750)
----------- --------

Distributable cash flow $ 53,496 $18,117
=========== ========

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(1) EBITDA, Adjusted EBITDA and distributable cash flow are non-GAAP
(generally accepted accounting principles) financial measures
under the rules of the Securities and Exchange Commission.
Management of Atlas Energy believes that EBITDA, Adjusted EBITDA
and distributable cash flow provide additional information for
evaluating the Company's ability to make distributions to its
unitholders, among other things. These measures are widely used
by commercial banks, investment bankers, rating agencies and
investors in evaluating performance relative to peers and pre-set
performance standards. EBITDA is also a financial measurement
that, with certain negotiated adjustments, is utilized within
Atlas Energy financial covenants under its credit facility.
EBITDA, Adjusted EBITDA and distributable cash flow are not
measures of financial performance under GAAP and, accordingly,
should not be considered as a substitute for net income,
operating income, or cash flows from operating activities in
accordance with GAAP.

(2) Note that this reconciling item was previously referred to as
"Gain on mark-to-market derivatives" in the fourth quarter 2007
reconciliation from Adjusted EBITDA to distributable cash flow.
This item represents the adjustments to reflect the cash impact
of non-qualifying derivatives. Previous Company earnings releases
referenced this item as "Gain on mark-to-market derivatives." The
Company received cash with respect to the settlement of non-
qualifying derivatives of $5.0 million for the three months ended
March 31, 2008 (no such amounts were received for comparable
prior year period). The cash received is not recognized as a gain
within the Company's statements of income. The Company's impact
from non-qualifying derivatives is the result of derivative
instruments it entered into in connection with the acquisition of
its Michigan assets in June 2007. As these derivatives were
entered into prior to the closing of the acquisition, the
derivative contracts were considered non-qualifying derivatives
under GAAP and required to have their subsequent changes in their
fair value recorded as gains and losses in the Company's
statements of income, for which the Company recognized a non-cash
gain of $26.3 million during the three months ended June 30,
2007. Upon closing of the acquisition, the derivatives were
considered qualifying derivatives under GAAP with all subsequent
changes in their fair value recorded within accumulated other
comprehensive income in members' equity on the Company's
consolidated balance sheet. However, a portion of the cash
settlement of these derivative contracts are considered non-
qualifying for change in fair value of the period from the date
the derivative contracts were entered into and the date of
acquisition for the Michigan assets.
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ATLAS ENERGY RESOURCES, LLC
Operating Highlights

Three Months Ended
March 31,
-------------------
2008 2007
--------- ---------
Production revenues (in thousands):
Gas (1) $ 72,874 $ 19,427
Oil $ 3,351 $ 1,826

Production volume:(1) (2) (3)
Appalachia:
--------------------------------------------------
Gas (Mcfd) 30,286 23,681
Oil (Bpd) 399 359
--------- ---------
Total (Mcfed) 32,680 25,835
--------- ---------
Michigan:(4)
--------------------------------------------------
Gas (Mcfd) 59,056 -
Oil (Bpd) 6 -
--------- ---------
Total (Mcfed) 59,092 -
--------- ---------
Total (Mcfed) 91,772 25,835
========= =========

Average sales prices:(3) (5)
Gas (per Mcf) (6) $ 9.58 $ 9.12
Oil (per Bbl) $ 91.03 $ 56.52

Production costs:(7)
As a percent of production revenues 12% 10%
Per Mcfe (3) $ 1.11 $ 0.87

Depletion per Mcfe (3) $ 2.52 $ 2.31
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(1) Excludes sales of residual gas and sales to landowners.

(2) Production quantities consist of the sum of (i) our proportionate
share of production from wells in which we have a direct
interest, based on our proportionate net revenue interest in such
wells, and (ii) our proportionate share of production from wells
owned by the investment partnerships in which we have an
interest, based on our equity interest in each such partnership
and based on each partnership's proportionate net revenue
interest in these wells.

(3) "Mcf" and "mcfd" represents thousand cubic feet and thousand cubic
feet per day; "mcfe" and "mcfed" represents thousand cubic feet
equivalent and thousand cubic feet equivalent per day, and "bbl"
and "bpd" represents barrels and barrels per day. Barrels are
converted to mcfe using the ratio of six mcf's to one barrel.

(4) We acquired AGO on June 29, 2007, and production volume from these
assets have only been included from that date.

(5) Our average sales price before the effects of financial hedging
was $8.32 and $7.85 per Mcf for the three months ended March 31,
2008 and 2007, respectively.

(6) Includes $5.0 million in derivative proceeds which were not
included as revenue in the first quarter 2008. No such derivative
proceeds were received during the first quarter 2007.

(7) Production costs include labor to operate the wells and related
equipment, repairs and maintenance, materials and supplies,
property taxes, severance taxes, insurance and production
overhead.
*T

Atlas Energy Resources, LLC
Brian J. Begley
Investor Relations
215-546-5005
Fax: 215-553-8455

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