Atlas Energy Resources, LLC: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

5 May 2008capital raising announcement● Neutral

The company sold 600,000 common units to its parent Atlas America in a private sale on May 5, 2008 at $42.00 per unit (that day's NYSE closing price), raising $25.2 million. This adds common units, slightly increasing the unit count, and the filing does not state what the money will be used for.

What it means for a shareholder

600,000 new shares at about $42.00 to raise about $25.2m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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21 May 2007capital raising announcement▲ GoodMajor

The company agreed on May 18, 2007 to buy DTE Gas & Oil Company from MCN Energy Enterprises and DTE Energy for about $1.225 billion in cash. DGO holds interests in about 2,150 Antrim Shale gas wells in Michigan (about 228,000 net developed and 66,000 net undeveloped acres), with closing expected around June 30, 2007. To pay for it, the company got a commitment for an $850 million five-year revolving credit facility from JPMorgan and agreed a $600 million private placement of about 7.3 million common units and 16.7 million Class D units at a weighted average $25.00. Class D units are non-voting and rank behind common units, and would convert to common only if unitholders approve; Atlas America (about 80% owner) was to vote for it. The press release says reserves would rise from 181 to 794 Bcfe and guides 2008 distributions of $2.20-$2.40 per common unit, versus the current $0.43 per quarter; these are management's expectations.

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