Atlas Resource Partners, L.P. (ARP - Snapshot Report) reported a third-quarter loss of 3 cents per unit  wider than the Zacks Consensus Estimate of a loss of 1 cent.

Total Revenue

Total revenues in the third quarter soared 122.5% year over year to $202.7 million, ahead of the Zacks Consensus Estimate of $168 million. The massive improvement was primarily driven by a rise in oil and gas production and revenues generated from wells construction and completion.

Operational Update

In the quarter under review, Atlas Resource Partners reported an average production volume of 286.1 million cubic feet equivalent per day (MMcfed), up 28.6% from 222.5 MMcfed a year ago. The rise in production can be attributed to the acquisition of Rangely Field and GeoMet natural gas production assets in the second quarter of 2014.

Including the effect of hedged positions, realized prices of natural gas increased 2.9% year over year to $3.55 per thousand cubic feet equivalent (Mcfe) while realized oil prices decreased 3.1% year over year to $90.18 per barrel (Bbl).

Atlas Resource’s total cost and expenses in the reported quarter were nearly $185 million, up 54.9% year over year mainly due to higher expenses related to oil and gas production and wells construction and completion.

Operating income was $17.7 million as against an operating loss of $28.3 million in the third quarter of 2013.

Financial Update

Atlas Resource Partners’ cash and cash equivalents as of Sep 30, 2014, increased to $5.2 million from $1.8 million as of Dec 31, 2013.

Long-term debt as of Sep 30, 2014, was $1,283.0 million compared with $942.3 million as of Dec 31, 2013.

In the third quarter, the partnership invested $55.9 million in capital expenditure compared with $73.9 million spent a year ago.

Business Update

On Nov 5, 2014, Atlas Resource completed the acquisition of primarily oil assets in the Eagle Ford Shale in south Texas for a total consideration of $200 million. An additional $24 million will have to be paid in three installments. These assets include 22 producing wells as well as 19 undeveloped locations with estimated net reserves of 12 million barrels of oil equivalent.

The partnership has announced a third-quarter 2014 cash distribution of 19.66 cents per limited partner unit, up around 5% from the prior-year payout. This will be paid on Nov 14, 2014 to unitholders of record as of Nov 10.

Guidance

Atlas Resource Partners issued total production volume guidance of 291 million MMcfed for 2015. The partnership expects cash distribution of $2.40 per unit for 2015.

The partnership also provided a capital expenditure guidance of $200 million for 2015, including an allocation of $71.3 million for maintenance capital expenditures.

Other Partnership Releases

Energy Transfer Partners LP (ETP - Analyst Report) reported third-quarter 2014 earnings of 44 cents per limited partner unit, lagging the Zacks Consensus Estimate of 66 cents.

ONEOK Partners, L.P. (OKS - Analyst Report) reported third-quarter 2014 adjusted earnings of 63 cents per unit, surpassing the Zacks Consensus Estimate of 62 cents by 1.6%.

Plains All American Pipeline, L.P. (PAA - Analyst Report) reported third-quarter 2014 adjusted earnings of 49 cents per unit, missing the Zacks Consensus Estimate of 51 cents by 3.9%.

Zacks Rank

Atlas Resource Partners currently has a Zacks Rank #3 (Hold).