ARKHAN 8-K Atlas Energy, Inc. Reports Operating and Financial Results

Exhibit 99.1

NEWS RELEASE

CONTACT:	Brian J. Begley
	Vice President - Investor Relations
	Atlas Energy, Inc.
	(877) 280-2857
	(215) 553-8455 (fax)

ATLAS ENERGY, INC. REPORTS OPERATING AND FINANCIAL RESULTS

FOR THE THIRD QUARTER 2010

Pittsburgh, PA – November 8, 2010, Atlas Energy, Inc. (NASDAQ: ATLS) (“Atlas” or “the Company”) today reported operating and financial results for the third quarter 2010.

Third Quarter 2010 Results

• Average daily Appalachia production in the third quarter 2010 increased to approximately 63.3 million cubic feet of natural gas equivalents (“Mmcfe”) per day, an increase of approximately 15% from the second quarter 2010 and over 53% higher than the prior year comparable quarter, due primarily to the Company’s development of its Marcellus Shale position in southwestern Pennsylvania;

• Total company average daily production increased to 118.3 Mmcfe per day in the third quarter 2010, representing an 8% increase from the second quarter 2010;

• Average realized natural gas prices for the third quarter 2010, inclusive of the effects of financial hedging, was $6.62 per thousand cubic feet (“mcf”), exceeding the average market price of $4.35 per mcf by $2.27;

• On a GAAP basis, the Company recognized net income of $16.0 million for the third quarter 2010 compared with net loss of $0.7 million for the prior year third quarter. The increase over the prior year quarter was due primarily to income recognized in the current quarter related to the Company’s equity portion of income from Atlas Pipeline Partners, L.P. (NYSE: APL);

• Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure, for the Company’s exploration and production operations (“E&P Operations”) was $72.8 million for the third quarter 2010, as compared with $56.2 million for the prior year comparable quarter. Excluding the cash received from the early settlement of certain natural gas hedges, as well as the effects of allocations of net production revenues to the syndicated drilling partners, E&P Operations adjusted EBITDA was $56.3 million in the third quarter 2010. Increased production volumes in the third quarter 2010 partially offset by the decline in realized prices compared to the prior year period. A reconciliation of net income to adjusted EBITDA is provided in the financial tables of this release.

• Partnership management margin⁽¹⁾ was $16.0 million for the third quarter 2010. The Company recently raised approximately $150 million in investor funds for the Series 28-2010 L.P. drilling program.⁽²⁾

⁽¹⁾ Partnership management margin is comprised of Well Construction & Completion margin, Well Services margin and Administration & Oversight Fee revenues.

⁽²⁾ 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 when available from Anthem Securities, Inc. (a subsidiary of Atlas Energy), 1550 Coraopolis Heights Rd. – 2nd Floor, Moon Township, PA 15108.

Corporate and Other

• Cash general and administrative expense, excluding amounts attributable to APL and Atlas Pipeline Holdings, L.P. (NYSE:AHD), was $17.3 million for the third quarter 2010 compared with $15.4 million for the prior year comparable quarter. The $1.9 million increase was principally related to the expansion of the Company’s Marcellus Shale operations. Please refer to the consolidating statements of operations provided in the financial tables of this release.

• Depreciation, depletion and amortization expense, excluding amounts attributable to APL and AHD, was $30.3 million for the third quarter 2010 compared with $24.6 million for the prior year comparable quarter. The increase was due primarily to an overall increase in the Company’s natural gas production between periods. See the consolidating statements of operations provided in the financial tables of this release.

• Cash interest expense, excluding amounts attributable to APL and AHD, was $16.3 million for the third quarter 2010 compared with $17.9 million for the prior year third quarter. The decrease in interest expense was primarily due to lower average credit facility borrowings. See the consolidating statements of operations provided in the financial tables of this release.

• As of September 30, 2010, Atlas’ long term debt balance included the following:

• $400 million principal amount of Atlas Energy Resources, LLC’s (“ATN”) 10.75% senior notes due in 2018;

• $200 million principal amount of ATN’s 12.125% senior notes due in 2017; and

• $76 million outstanding on ATN’s $550 million revolving credit facility.

Hedging Summary

• In August 2010, the Company received approximately $21.5 million in proceeds from the early settlement of natural gas hedge positions related to periods from 2013 through 2014. Simultaneously, these hedge positions were effectively replaced with similar hedge contracts at current prevailing prices. The net proceeds from the hedge monetization were used to reduce revolving credit facility indebtedness.

• The Company entered into additional derivative contracts during the third quarter 2010 for its natural gas production and currently estimates a mark-to-market hedge gain of more than $100 million from its remaining future hedge positions. A summary of the Company’s current derivative positions as of November 8, 2010 is as follows:

Natural Gas

Fixed Price Swaps
Production Period Ended December 31,			Average Fixed Price (per mcf)(a)(b)		Volumes (per mcf)(a)
	2010	(c)	$	7.69		6,866,895
	2011		$	6.58		17,997,780
	2012		$	6.67		14,565,697
	2013		$	5.68		9,836,144
	2014		$	5.81		5,408,903

Costless Collars
Production Period Ended December 31,			Average Floor Price (per mcf)(a)(b)		Average Ceiling Price (per mcf)(a)(b)		Volumes (per mcf)(a)
	2010	(c)	$	8.04	$	9.22		613,687
	2011		$	6.06	$	7.15		8,854,950
	2012		$	6.21	$	7.30		8,724,439
	2013		$	5.14	$	6.38		10,343,790
	2014		$	5.65	$	6.81		5,218,142

Crude Oil

Fixed Price Swaps
Production Period Ended December 31,			Average Fixed Price (per bbl)(a)		Volumes (bbls)(a)
	2010	(c)	$	96.91		8,448
	2011		$	69.77		32,194
	2012		$	71.55		26,139
	2013		$	72.26		5,900

Costless Collars
Production Period Ended December 31,			Average Floor Price (per bbl)(a)		Average Ceiling Price (per bbl)(a)		Volumes (bbls)(a)
	2010	(c)	$	85.00	$	111.90		5,327
	2011		$	60.00	$	80.92		20,361
	2012		$	60.00	$	86.50		16,777
	2013		$	60.00	$	88.90		3,540

^(a) “Mcf” represents thousand cubic feet; “bbl” represents barrel.

^(b) Includes an estimated positive basis differential and Btu (British thermal units) adjustment.

^(c) Reflects hedges covering the last three months of 2010.

Interest in Atlas Pipeline and Atlas Pipeline Holdings

Through the Company’s controlling interest in AHD, which owns and operates the general partner of APL and owns 5.8 million limited partner units in APL, the Company recognizes approximately 10% of APL’s net income (loss) after eliminating non-controlling interests. A consolidating statement of operations and balance sheet has been provided in the financial tables of the release, which segregates the Company’s E&P Operations financial results from the APL midstream financial results.

At September 30, 2010, the Company had a 100.0% ownership interest in ATN, an approximate 2.1% direct ownership interest in APL, a publicly-traded limited partnership, and an approximate 64.3% limited partner interest and 100% of the general partner interest in AHD. The Company’s financial results are presented on a consolidated basis with those of ATN, AHD, and APL. Non-controlling interests in ATN, AHD, and APL are reflected as income (expense) in the Company’s consolidated statements of operations and as a component of shareholders’ equity on its consolidated balance sheets. A consolidating statement of operations and balance sheet has also been provided in the financial tables to the release for the comparable periods presented.

Please refer to the respective AHD and APL earnings releases for more information with regard to their third quarter 2010 financial results.

Interested parties are invited to access the live webcast of an investor call with management regarding Atlas Energy, Inc.’s second quarter 2010 results on Tuesday, November 9, 2010 at 9:00 am ET by going to theInvestor Relations section of Atlas Energy’s website at www.atlasenergy.com. For those unavailable to listen to the live broadcast, the replay of the webcast will be available following the live call on the Atlas Energy website and telephonically beginning at 12:00 p.m. ET on November 9, 2010 by dialing 888-286-8010, passcode: 14129376.

Atlas Energy, Inc. is one of the largest independent natural gas producers in the Appalachian and Michigan Basins and a leading producer in the Marcellus Shale in Pennsylvania. Atlas Energy, Inc. is also the country’s largest sponsor and manager of tax-advantaged energy investment partnerships. Atlas Energy also owns 1.1 million common units and 8,000 preferred units in Atlas Pipeline Partners, L.P. and a 64% controlling interest in Atlas Pipeline Holdings. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.

Atlas Pipeline Partners, L.P. is active in the gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, southern Kansas, and northern and western Texas, APL owns and operates five active gas processing plants as well as approximately 8,300 miles of active intrastate gas gathering pipeline. In Appalachia, APL is a 49% joint venture partner with Williams in Laurel Mountain Midstream, LLC, which manages a natural gas gathering system focused on the Marcellus Shale in southwestern Pennsylvania. For more information, visit the Partnership’s website at www.atlaspipelinepartners.com or contact IR@atlaspipeline.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 1.9% general partner interest, all the incentive distribution rights and approximately 5.8 million common limited partner units of Atlas Pipeline Partners, L.P.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Atlas Energy, Inc. cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; changes in commodity price; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; the Company’s level of indebtedness; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in the Company’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”). Forward-looking statements speak only as of the date hereof, and the Company assumes no obligation to update such statements, except as may be required by applicable law.

ATLAS ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Revenues:
Gas and oil production	$	67,503		$	65,986		$	200,600		$	207,908
Well construction and completion		60,748			81,496			176,685			257,231
Transmission, gathering and processing		235,691			179,327			687,423			483,126
Administration and oversight		3,561			3,149			7,473			9,644
Well services		6,008			5,012			17,063			14,911
Gain (loss) on mark-to-market derivatives(1)		(6,943	)		(19	)		3,042			(23,931	)
Other, net		4,515			4,851			12,630			11,696
Total revenues		371,083			339,802			1,104,916			960,585
Costs and expenses:
Gas and oil production		13,799			12,128			39,179			33,217
Well construction and completion		51,481			69,138			149,724			218,236
Transmission, gathering and processing		199,294			151,272			581,106			420,347
Well services		2,796			2,378			8,071			6,922
General and administrative		29,466			32,014			85,548			81,216
Depreciation, depletion and amortization		48,824			42,480			142,880			135,431
Total costs and expenses		345,660			309,410			1,006,508			895,369
Operating income		25,423			30,392			98,408			65,216
Gain (loss) on asset sales		727			(2,438	)		286,361			103,253
Interest expense		(44,810	)		(47,771	)		(130,990	)		(124,446	)
Income (loss) from continuing operations before income tax provision		(18,660	)		(19,817	)		253,779			44,023
Income tax provision (benefit)		(20	)		(1,118	)		111,206			4,738
Net income (loss) from continuing operations		(18,640	)		(18,699	)		142,573			39,285
Discontinued operations:
Gain on sale of discontinued operations (net of income tax provision of $12,560 for the three and nine months ended September 30, 2010 and $2,228 for the nine months ended September 30, 2010 and 2009)		298,932			—			298,932			48,851
Income from discontinued operations (net of income tax provision (benefit) of $(224) and $402 for the three months ended September 30, 2010 and 2009, respectively, and $371 and $1,315 for the nine months ended September 30, 2010 and 2009, respectively)		(5,341	)		8,813			8,821			28,847
Net income (loss)		274,951			(9,886	)		450,326			116,983
(Income) loss attributable to non-controlling interests		(258,998	)		9,172			(260,622	)		(103,686	)
Net income (loss) attributable to common shareholders	$	15,953		$	(714	)	$	189,704		$	13,297
Net income (loss) attributable to common shareholders per share – basic:
Income (loss) from continuing operations attributable to common shareholders	$	(0.04	)	$	(0.04	)	$	2.16		$	0.20
Income from discontinued operations attributable to common shareholders		0.24			0.02			0.26			0.14
Net income (loss) attributable to common shareholders	$	0.20		$	(0.02	)	$	2.42		$	0.34
Net income (loss) attributable to common shareholders per share – diluted:
Income (loss) from continuing operations attributable to common shareholders	$	(0.04	)	$	(0.04	)	$	2.09		$	0.19
Income from discontinued operations attributable to common shareholders		0.24			0.02			0.25			0.14
Net income (loss) attributable to common shareholders	$	0.20		$	(0.02	)	$	2.34		$	0.33
Weighted average common shares outstanding:
Basic		78,405			39,780			78,319			39,460
Diluted		81,175			39,780			81,203			40,051
Income (loss) attributable to common shareholders:
Income (loss) from continuing operations (net of income tax provision (benefit) of $(20) and $(1,118) for the three months ended September 30, 2010 and 2009, respectively, and $111,206 and $4,738 for the nine months ended September 30, 2010 and 2009, respectively)	$	(3,341	)	$	(1,342	)	$	169,479		$	7,767
Income from discontinued operations (net of income tax provision of $12,336 and $402 for the three months ended September 30, 2010 and 2009, respectively and $12,931 and $3,543 for the nine months ended September 30, 2010 and 2009, respectively)		19,294			628			20,225			5,530
Net income (loss) attributable to common shareholders	$	15,953		$	(714	)	$	189,704		$	13,297

⁽¹⁾ Consists principally of hydrocarbon derivative gains / (losses) that relate to the operating activities of the Company’s consolidated subsidiary, APL. The underlying hydrocarbon derivatives do not represent present or potential future obligations of the Company.

ATLAS ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

	September 30, 2010		December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	79,940	$	20,627
Accounts receivable		135,825		152,146
Current portion of derivative asset		107,209		74,064
Subscriptions receivable from Partnerships		—		47,275
Inventory		23,557		22,905
Prepaid expenses and other		8,407		6,061
Prepaid and deferred taxes		—		1,559
Current assets of discontinued operations		—		22,746
Total current assets		354,938		347,383
Property, plant and equipment, net		3,344,167		3,199,122
Goodwill and intangible assets, net		169,661		187,520
Long-term derivative asset		108,766		59,291
Investment in Laurel Mountain joint venture		135,765		132,990
Long-term portion of deferred tax asset		—		29,734
Other assets, net		70,944		71,093
Long-term assets of discontinued operations		—		379,030
	$	4,184,241	$	4,406,163
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	206	$	8,000
Accounts payable		105,798		96,376
Liabilities associated with drilling contracts		95,189		122,532
Accrued producer liabilities		58,143		57,430
Current portion of derivative liability		3,581		38,485
Current portion of derivative payable to Partnerships		36,637		22,382
Accrued interest		23,563		38,898
Accrued well drilling and completion costs		65,373		89,261
Current portion of deferred tax liability		30,049		26,415
Accrued and other current liabilities		63,377		45,114
Current liabilities of discontinued operations		—		13,181
Total current liabilities		481,916		558,074
Long-term debt, less current portion		1,185,869		2,040,572
Long-term derivative liability		31,148		25,441
Long-term derivative payable to Partnerships		43,055		22,380
Long-term portion of deferred tax liability		116,142		—
Other long-term liabilities		60,916		56,180
Shareholders’ equity:
Shareholders’ equity		1,268,736		1,065,290
Accumulated other comprehensive income		109,158		58,022
		1,377,894		1,123,312
Non-controlling interests		887,301		580,204
Total shareholders’ equity		2,265,195		1,703,516
	$	4,184,241	$	4,406,163

ATLAS ENERGY, INC.

Financial and Operating Highlights

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net income attributable to common shareholders per share—basic	$	0.20		$	(0.02	)	$	2.42		$	0.34
Adjusted net income attributable to common shareholders per share – basic(1)	$	0.27		$	0.10		$	0.51		$	0.65
Pro forma adjusted net income attributable to common shareholders per share – basic(1)	$	0.27		$	0.11		$	0.51		$	0.66
E&P Operations Discretionary Cash Flow per share(2)	$	0.72		$	0.58		$	1.86		$	2.17
Production revenues (in thousands):
Natural gas	$	63,118		$	62,748		$	187,122		$	199,519
Oil		4,385	(3)		3,238			13,478	(3)		8,389
Total production revenues	$	67,503	(3)	$	65,986		$	200,600	(3)	$	207,908
Production volume:(4) (5)
Appalachia:
Natural gas (Mcfd)		57,554			38,579			49,155			39,748
Oil (Bpd)		964	(6)		460			899	(6)		442
Total (Mcfed) Oil (Bbls/day)		63,339	(6)		41,339			54,551	(6)		42,400
Michigan/Indiana:
Natural gas (Mcfd)		54,777			58,519			54,700			58,277
Oil (Bpd)		28	(6)		9			30	(6)		9
Total (Mcfed) Oil (Bbls/day)		54,944	(6)		58,573			54,882	(6)		58,331
Total:
Natural gas (Mcfd)		112,331			97,099			103,855			98,024
Oil (Bpd)		992	(6)		469			930	(6)		451
Total (Mcfed)		118,283	(6)		99,913			109,433	(6)		100,730
Average sales prices:(5)
Natural gas (per Mcf) (7)(8)	$	6.62		$	7.29		$	7.08		$	7.67
Oil (per Bbl)(9)	$	73.73		$	75.03		$	74.67		$	68.13
Production costs:(5)(10)
Lease operating expenses per Mcfe	$	0.78		$	0.81		$	0.84		$	0.84
Production taxes per Mcfe		0.14			0.14			0.16			0.16
Total production costs per Mcfe	$	0.92		$	0.95		$	1.00		$	1.00
Depletion per Mcfe(5)	$	2.65		$	2.56		$	2.79		$	2.79

⁽¹⁾ A reconciliation from net income to adjusted net income attributable to common shareholders per share and pro forma adjusted net income attributable to common shareholders per share is provided in the financial tables of this release.

⁽²⁾ Calculation consists of discretionary cash flow divided by pro forma weighted average common shares outstanding for the respective period. A reconciliation from net income to discretionary cash flow is provided in the financial tables of this release. Pro forma weighted average common shares outstanding for the respective period consists of the historical basic weighted average shares of the Company for the respective period, adjusted for the 38.8 million shares of the Company’s common stock issued in connection with the merger of Atlas America, Inc. and Atlas Energy Resources, LLC to form Atlas Energy, Inc. on September 29, 2009 (the “Merger”).

⁽³⁾ Includes NGL production revenue for the three and nine months ended September 30, 2010.

⁽⁴⁾ Production quantities consist of the sum of (i) the Company’s proportionate share of production from wells in which it has a direct interest, based on the Company’s proportionate net revenue interest in such wells, and (ii) the Company’s proportionate share of production from wells owned by the investment partnerships in which the Company has an interest, based on its equity interest in each such partnership and based on each partnership’s proportionate net revenue interest in these wells.

⁽⁵⁾ “Mcf” and “Mcfd” represent thousand cubic feet and thousand cubic feet per day; “Mcfe” and “Mcfed” represent thousand cubic feet equivalents and thousand cubic feet equivalents per day, and “Bbl” and “Bpd” represent barrels and barrels per day. Barrels are converted to Mcfe using the ratio of six Mcf’s to one barrel.

⁽⁶⁾ Includes NGL production volume for the three and nine months ended September 30, 2010.

⁽⁷⁾ The Company’s average sales price for natural gas before the effects of financial hedging was $4.35 per Mcf and $3.19 per Mcf for the three months ended September 30, 2010 and 2009, respectively, and $4.74 per Mcf and $4.01 per Mcf for the nine months ended September 30, 2010 and 2009, respectively. These amounts exclude the impact of certain allocations of production revenues to investor partners within the investor partnerships. Including the effects of these allocations, average gas sales prices were $6.08 per Mcf ($3.81 per Mcf before the effects of financial hedging) and $7.06 per Mcf ($2.97 per Mcf before the effects of financial hedging) for the three months ended September 30, 2010 and 2009, respectively, and $6.60 per Mcf ($4.26 per Mcf before the effects of financial hedging) and $7.55 per Mcf ($3.89 per Mcf before the effects of financial hedging) for the nine months ended September 30, 2010 and 2009, respectively.

⁽⁸⁾ Includes adjustments of $(0.2) million and $0.4 million for the three months ended September 30, 2010 and 2009, respectively, and $(0.1) million and $2.4 million for the nine months ended September 30, 2010 and 2009, respectively, related to cash proceeds received and payments made in June 2007 from the settlement of ineffective derivatives associated with the acquisition of the Company’s Michigan operations.

⁽⁹⁾ The Company’s average sales price for oil before the effects of financial hedging was $65.82 per barrel and $62.81 per barrel for the three months ended September 30, 2010 and 2009, respectively, and $68.44 per barrel and $52.30 per barrel for the nine months ended September 30, 2010 and 2009, respectively.

⁽¹⁰⁾ 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. These amounts exclude the effects of our proportionate share of lease operating expenses associated with certain allocations of production revenue to investor partners within our investor partnerships. Including the effects of these costs, lease operating expenses per Mcfe were $0.61 per Mcfe ($0.75 per Mcfe for total production costs) and $0.73 per Mcfe ($0.87 per Mcfe for total production costs) for the three months ended September 30, 2010 and 2009, respectively, and $0.68 per Mcfe ($0.84 per Mcfe for total production costs) and $0.80 per Mcfe ($0.96 per Mcfe for total production costs) for the nine months ended September 30, 2010 and 2009, respectively.

ATLAS ENERGY, INC.

CAPITALIZATION INFORMATION

(unaudited; in thousands)

	September 30, 2010									December 31, 2009
	Atlas Energy			Atlas Pipeline and Atlas Pipeline Holdings			Consolidated			Atlas Energy			Atlas Pipeline and Atlas Pipeline Holdings			Consolidated
Total debt	$	678,193		$	507,882		$	1,186,075		$	786,390		$	1,262,182		$	2,048,572
Less: Cash		(79,724	)		(216	)		(79,940	)		(19,525	)		(1,102	)		(20,627	)
Total net debt		598,469			507,666			1,106,135			766,865			1,261,080			2,027,945
Shareholders’ equity		1,378,039			1,035,905			2,265,195	(1)		1,123,481			690,726			1,703,516	(1)
Total capitalization	$	1,976,508		$	1,543,571		$	3,371,330		$	1,890,346		$	1,951,806		$	3,731,461
Ratio of net debt to capitalization		0.30x									0.41x

⁽¹⁾ Net of eliminated amounts.

ATLAS ENERGY, INC.

CAPITAL EXPENDITURE DATA

(unaudited; in thousands)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2010			2009(1)		2010			2009(1)
Atlas Energy	$	97,163	(2)	$	34,372	$	257,424	(2)	$	130,785
Atlas Pipeline Partners		8,524			5,106		31,194			115,132
Consolidated capital expenditures	$	105,687		$	39,478	$	288,618		$	245,917

⁽¹⁾ Restated to reflect amounts reclassified to discontinued operations due to APL’s sale of its Elk City and NOARK systems.

⁽²⁾ Capital expenditures for the three and nine months ended September 30, 2010 include approximately $17 million and $44 million, respectively, for acreage acquired upon completion of the Company’s joint venture with Reliance Industries, Ltd., and which was funded with cash proceeds from the closing of the transaction.

ATLAS ENERGY, INC.

Financial Information

(unaudited; in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
E&P Operations:
Gas and oil production margin(1)	$	74,925		$	54,211		$	202,900		$	199,463
Well construction and completion margin		9,267			12,358			26,961			38,995
Administration and oversight margin		3,561			3,149			7,473			9,644
Well services margin		3,212			2,634			8,992			7,989
Gathering		(2,260	)		(1,874	)		(6,897	)		(6,720	)
E&P Operations Gross Margin		88,705			70,478			239,429			249,371
Cash general and administrative expenses(2)		(17,307	)		(15,390	)		(48,226	)		(41,824	)
Other, net		1,382			1,082			3,157			(337	)
E&P Operations Adjusted EBITDA(3)		72,780			56,170			194,360			207,210
Cash interest expense(4)		(16,254	)		(17,903	)		(48,799	)		(44,287	)
Cash income tax refunds		—			7,298			—			7,298
E&P Operations Discretionary Cash Flow(3)		56,526			45,565			145,561			170,221
Capital expenditures		(97,163	)		(34,372	)		(257,424	)		(130,785	)
E&P Operations Free Cash Flow(3)(5)	$	(40,637	)	$	11,193		$	(111,863	)	$	39,436

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Reconciliation of non-GAAP measures to net income attributable to common shareholders(3):
E&P Operations Discretionary Cash Flow	$	56,526		$	45,565		$	145,561		$	170,221
Atlas Pipeline and Atlas Pipeline Holdings net income (loss) attributable to common shareholders		15,684			(3,016	)		13,486			5,416
Cash income tax refunds		—			(7,298	)		—			(7,298	)
Income tax (provision) benefit		20			1,118			(111,206	)		(4,738	)
Non-recurring Merger costs		—			(6,108	)		—			(6,752	)
Depreciation, depletion and amortization		(30,257	)		(24,563	)		(87,232	)		(79,863	)
Amortization of deferred finance costs		(1,133	)		(1,230	)		(3,607	)		(2,897	)
Non-cash stock compensation expense		(4,098	)		(1,034	)		(11,921	)		(6,055	)
Non-cash net gain (loss) on asset sales		609			(1,444	)		286,308			(5,694	)
Income attributable to ATN non-controlling interests(6)		(10	)		(2,351	)		(39	)		(18,067	)
Adjustments to reflect the cash impact of derivatives(1)		(21,388	)		(353	)		(41,646	)		(30,976	)
Net income (loss) attributable to common shareholders	$	15,953		$	(714	)	$	189,704		$	13,297

⁽¹⁾ Includes adjustments to reflect the cash impact of derivatives, including (i) $21.5 million of cash proceeds received in August 2010 from the early settlement of natural gas derivative positions, (ii) $20.1 million of cash proceeds received in January 2010 from the early settlement of natural gas and oil derivative positions, (iii) $28.5 million of cash proceeds received in May 2009 from the early settlement of natural gas and oil derivative positions and (iv) adjustments related to cash proceeds received and payments made in June 2007 from the settlement of ineffective derivatives associated with the acquisition of the Company’s Michigan operations.

⁽²⁾ Excludes non-cash stock-compensation expense and non-recurring costs incurred in connection with the Merger.

⁽³⁾ Adjusted EBITDA, discretionary cash flow and free cash flow are non-GAAP (generally accepted accounting principles) financial measures under the rules of the Securities and Exchange Commission. Management of the Company believes that adjusted EBITDA, discretionary cash flow and free cash flow provide additional information for evaluating the Company’s performance, 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. Adjusted EBITDA, discretionary cash flow and free 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.

⁽⁴⁾ Excludes non-cash amortization of deferred financing costs.

⁽⁵⁾ Excludes the impact of cash distributions paid by Atlas Energy Resources, LLC to its non-controlling interests for periods prior to the Merger on September 29, 2009.

⁽⁶⁾ Represents the non-controlling interests in the net income of Atlas Energy Resources, LLC prior to the Merger on September 29, 2009.

ATLAS ENERGY, INC.

Financial Information

(unaudited; in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Reconciliation of net income (loss) attributable to common shareholders to non-GAAP measure(1):
Net income attributable to common shareholders	$	15,953		$	(714	)	$	189,704		$	13,297
Atlas Pipeline and Atlas Pipeline Holdings (income) loss attributable to common shareholders		(15,684	)		3,016			(13,486	)		(5,416	)
Non-recurring Merger costs		—			6,108			—			6,752
Adjustments to reflect the cash impact of derivatives		21,388			353			41,646			30,976
Non-cash net (gain) loss on asset sales		(609	)		1,444			(286,308	)		5,694
Non-cash stock compensation expense		4,098			1,034			11,921			6,055
Adjustment to non-controlling interests for the above items		—			(4,295	)		—			(24,192	)
Tax effect of the above items		(3,640	)		(2,940	)		96,133			(7,626	)
Adjusted net income attributable to common shareholders	$	21,506		$	4,006		$	39,610		$	25,540
Basic	$	0.27		$	0.10		$	0.51		$	0.65
Diluted	$	0.26		$	0.10		$	0.49		$	0.64
Weighted average common shares outstanding:
Basic		78,405			39,780			78,319			39,460
Diluted		81,175			40,706			81,203			40,051
Adjusted net income attributable to common shareholders	$	21,506		$	4,006		$	39,610		$	25,540
Adjustment to remove non-controlling interests for Atlas Energy Resources, LLC(2)		—			6,646			—			42,259
Tax effect of the above item		—			(2,393	)		—			(16,219	)
Pro forma adjusted net income attributable to common shareholders	$	21,506		$	8,259		$	39,610		$	51,580
Pro forma adjusted net income attributable to common shareholders per share:
Basic	$	0.27		$	0.11		$	0.51		$	0.66
Diluted	$	0.26		$	0.10		$	0.49		$	0.66
Pro forma weighted average common shares outstanding(3):
Basic		78,405			78,136			78,319			78,095
Diluted		81,175			79,144			81,203			78,714

(1) Adjusted net income attributable to common shareholders is a non-GAAP financial measure under the rules of the Securities and Exchange Commission. Management of the Company believes that the above financial measure provides additional information with respect to the Company’s ability to meet its capital expense and working capital requirements. Adjusted net income is not a measure of financial performance under GAAP and, accordingly, should not be considered as a substitute for revenues, net income or cash flows from operating activities prepared in accordance with GAAP.

(2) Adjusted to reflect the Merger on September 29, 2009, through which the Company issued 38.8 million shares of its common stock in exchange for the 33.4 million Class B common units of ATN not previously held by the Company. The Merger effectively removes the non-controlling interests in the net income of ATN upon the completion of the transaction.

(3) Consists of the historical basic and diluted weighted average shares of the Company for the respective period, adjusted for the 38.8 million shares of the Company’s common stock issued in connection with the Merger.

ATLAS ENERGY, INC.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended September 30, 2010

	Atlas Energy			Atlas Pipeline and Atlas Pipeline Holdings			Eliminations			Consolidated
Revenues:
Gas and oil production	$	67,503		$	—		$	—		$	67,503
Well construction and completion		60,748			—			—			60,748
Transmission, gathering and processing		5,262			230,429			—			235,691
Administration and oversight		3,561			—			—			3,561
Well services		6,008			—			—			6,008
Loss on mark-to-market derivatives		(167	)		(6,776	)		—			(6,943	)
Other, net		1,382			4,134			(1,001	)		4,515
Total revenues		144,297			227,787			(1,001	)		371,083
Costs and expenses:
Gas and oil production		13,799			—			—			13,799
Well construction and completion		51,481			—			—			51,481
Transmission, gathering and processing		7,522			191,772			—			199,294
Well services		2,796			—			—			2,796
General and administrative		21,405			8,061			—			29,466
Depreciation, depletion and amortization		30,257			18,567			—			48,824
Total costs and expenses		127,260			218,400			—			345,660
Operating income		17,037			9,387			(1,001	)		25,423
Gain on asset sales		609			118			—			727
Interest expense		(17,387	)		(28,424	)		1,001			(44,810	)
Income (loss) from continuing operations before income tax provision		259			(18,919	)		—			(18,660	)
Income tax benefit		(20	)		—			—			(20	)
Net income (loss) from continuing operations		279			(18,919	)		—			(18,640	)
Discontinued operations		—			293,591			—			293,591
Net income		279			274,672			—			274,951
Income attributable to non-controlling interests—E&P Operations		(10	)		—			—			(10	)
Income attributable to non-controlling interests—Atlas Pipeline and Atlas Pipeline Holdings		—			(1,075	)		(257,913	)		(258,988	)
Net income attributable to common shareholders	$	269		$	273,597		$	(257,913	)	$	15,953

ATLAS ENERGY, INC.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Three Months Ended September 30, 2009

	Atlas Energy			Atlas Pipeline and Atlas Pipeline Holdings			Eliminations		Consolidated
Revenues:
Gas and oil production	$	65,986		$	—		$	—	$	65,986
Well construction and completion		81,496			—			—		81,496
Transmission, gathering and processing		6,098			173,229			—		179,327
Administration and oversight		3,149			—			—		3,149
Well services		5,012			—			—		5,012
Loss on mark-to-market derivatives		—			(19	)		—		(19	)
Other, net		424			4,427			—		4,851
Total revenues		162,165			177,637			—		339,802
Costs and expenses:
Gas and oil production		12,128			—			—		12,128
Well construction and completion		69,138			—			—		69,138
Transmission, gathering and processing		7,972			143,300			—		151,272
Well services		2,378			—			—		2,378
General and administrative		22,532			9,482			—		32,014
Depreciation, depletion and amortization		24,563			17,917			—		42,480
Total costs and expenses		138,711			170,699			—		309,410
Operating income		23,454			6,938			—		30,392
Loss on asset sales		(1,444	)		(994	)		—		(2,438	)
Interest expense		(18,475	)		(29,296	)		—		(47,771	)
Income (loss) from continuing operations before income tax provision		3,535			(23,352	)		—		(19,817	)
Income tax benefit		(1,118	)		—			—		(1,118	)
Net income (loss) from continuing operations		4,653			(23,352	)		—		(18,699	)
Discontinued operations		—			8,813			—		8,813
Net income (loss)		4,653			(14,539	)		—		(9,886	)
Income attributable to non-controlling interests—E&P Operations		(2,351	)		—			—		(2,351	)
Income attributable to non-controlling interests—Atlas Pipeline and Atlas Pipeline Holdings		—			(953	)		12,476		11,523
Net income (loss) attributable to common shareholders	$	2,302		$	(15,492	)	$	12,476	$	(714	)

ATLAS ENERGY, INC.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Nine Months Ended September 30, 2010

	Atlas Energy			Atlas Pipeline and Atlas Pipeline Holdings			Eliminations			Consolidated
Revenues:
Gas and oil production	$	200,600		$	—		$	—		$	200,600
Well construction and completion		176,685			—			—			176,685
Transmission, gathering and processing		15,501			671,922			—			687,423
Administration and oversight		7,473			—			—			7,473
Well services		17,063			—			—			17,063
Gain (loss) on mark-to-market derivatives		(92	)		3,134			—			3,042
Other, net		3,082			11,528			(1,980	)		12,630
Total revenues		420,312			686,584			(1,980	)		1,104,916
Costs and expenses:
Gas and oil production		39,179			—			—			39,179
Well construction and completion		149,724			—			—			149,724
Transmission, gathering and processing		22,398			558,708			—			581,106
Well services		8,071			—			—			8,071
General and administrative		60,147			25,401			—			85,548
Depreciation, depletion and amortization		87,232			55,648			—			142,880
Total costs and expenses		366,751			639,757			—			1,006,508
Operating income		53,561			46,827			(1,980	)		98,408
Gain on asset sales		286,308			53			—			286,361
Interest expense		(52,406	)		(80,564	)		1,980			(130,990	)
Income (loss) from continuing operations before income tax provision		287,463			(33,684	)		—			253,779
Income tax provision		111,206			—			—			111,206
Net income (loss) from continuing operations		176,257			(33,684	)		—			142,573
Discontinued operations		—			307,753			—			307,753
Net income		176,257			274,069			—			450,326
Income attributable to non-controlling interests—E&P Operations		(39	)		—			—			(39	)
Loss attributable to non-controlling interests—Atlas Pipeline and Atlas Pipeline Holdings		—			(3,338	)		(257,245	)		(260,583	)
Net income attributable to common shareholders	$	176,218		$	270,731		$	(257,245	)	$	189,704

ATLAS ENERGY, INC.

CONSOLIDATING STATEMENTS OF OPERATIONS

(unaudited; in thousands)

Nine Months Ended September 30, 2009

	Atlas Energy			Atlas Pipeline and Atlas Pipeline Holdings			Eliminations			Consolidated
Revenues:
Gas and oil production	$	207,908		$	—		$	—		$	207,908
Well construction and completion		257,231			—			—			257,231
Transmission, gathering and processing		16,210			483,682			(16,766	)		483,126
Administration and oversight		9,644			—			—			9,644
Well services		14,911			—			—			14,911
Loss on mark-to-market derivatives		—			(23,931	)		—			(23,931	)
Other, net		(995	)		12,691			—			11,696
Total revenues		504,909			472,442			(16,766	)		960,585
Costs and expenses:
Gas and oil production		39,421			—			(6,204	)		33,217
Well construction and completion		218,236			—			—			218,236
Transmission, gathering and processing		22,930			407,979			(10,562	)		420,347
Well services		6,922			—			—			6,922
General and administrative		54,631			26,585			—			81,216
Depreciation, depletion and amortization		79,863			55,568			—			135,431
Total costs and expenses		422,003			490,132			(16,766	)		895,369
Operating income (loss)		82,906			(17,690	)		—			65,216
(Loss) gain on asset sales		(5,694	)		108,947			—			103,253
Interest expense		(46,526	)		(77,920	)		—			(124,446	)
Income from continuing operations before income tax provision		30,686			13,337			—			44,023
Income tax provision		4,738			—			—			4,738
Net income from continuing operations		25,948			13,337			—			39,285
Discontinued operations		—			77,698			—			77,698
Net income		25,948			91,035			—			116,983
Income attributable to non-controlling interests—E&P Operations		(18,067	)		—			—			(18,067	)
Income attributable to non-controlling interests—Atlas Pipeline and Atlas Pipeline Holdings		—			(2,075	)		(83,544	)		(85,619	)
Net income attributable to common shareholders	$	7,881		$	88,960		$	(83,544	)	$	13,297

ATLAS ENERGY, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

September 30, 2010

	Atlas Energy		Atlas Pipeline and Atlas Pipeline Holdings			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	79,724	$	216		$	—		$	79,940
Accounts receivable		121,495		48,713			(34,383	)		135,825
Current portion of derivative asset		103,598		3,611			—			107,209
Inventory		12,775		10,782			—			23,557
Prepaid expenses and other		4,307		4,100			—			8,407
Prepaid and deferred taxes		—		—			—			—
Total current assets		321,899		67,422			(34,383	)		354,938
Property, plant and equipment, net		2,004,437		1,339,730			—			3,344,167
Goodwill and intangible assets, net		37,507		132,154			—			169,661
Long-term derivative asset		108,766		—			—			108,766
Investment in Laurel Mountain joint venture		—		135,765			—			135,765
Long-term portion of deferred tax asset		—		—			—			—
Investment in subsidiaries		148,749		—			(148,749	)		—
Other assets, net		47,380		23,564			—			70,944
	$	2,668,738	$	1,698,635		$	(183,132	)	$	4,184,241
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	34,589		$	(34,383	)	$	206
Accounts payable		95,880		9,918			—			105,798
Liabilities associated with drilling contracts		95,189		—			—			95,189
Accrued producer liabilities		—		58,143			—			58,143
Current portion of derivative liability		2,069		1,512			—			3,581
Current portion of derivative payable to Partnerships		36,637		—			—			36,637
Accrued interest		11,223		12,340			—			23,563
Accrued well drilling and completion costs		65,373		—			—			65,373
Current portion of deferred tax liability		30,049		—			—			30,049
Accrued and other current liabilities		30,861		32,516			—			63,377
Total current liabilities		367,281		149,018			(34,383	)		481,916
Long-term debt, less current portion		678,193		507,676			—			1,185,869
Long-term derivative liability		25,378		5,770			—			31,148
Long-term derivative payable to Partnerships		43,055		—			—			43,055
Long-term portion of deferred tax liability		116,142		—			—			116,142
Other long-term liabilities		60,650		266			—			60,916
Shareholders’ equity:
Shareholders’ equity		1,268,736		30,840			(30,840	)		1,268,736
Accumulated other comprehensive income (loss)		109,158		(13,635	)		13,635			109,158
		1,377,894		17,205			(17,205	)		1,377,894
Non-controlling interests		145		1,018,700			(131,544	)		887,301
Total shareholders’ equity		1,378,039		1,035,905			(148,749	)		2,265,195
	$	2,668,738	$	1,698,635		$	(183,132	)	$	4,184,241

ATLAS ENERGY, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS

(unaudited; in thousands)

December 31, 2009

	Atlas Energy		Atlas Pipeline and Atlas Pipeline Holdings			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	19,525	$	1,102		$	—		$	20,627
Accounts receivable		98,687		77,714			(24,255	)		152,146
Current portion of derivative asset		73,066		998			—			74,064
Subscriptions receivable from Partnerships		47,275		—			—			47,275
Inventory		12,207		10,698			—			22,905
Prepaid expenses and other		3,399		2,662			—			6,061
Prepaid and deferred taxes		1,559		—			—			1,559
Current assets of discontinued operations		—		22,746			—			22,746
Total current assets		255,718		115,920			(24,255	)		347,383
Property, plant and equipment, net		1,871,418		1,327,704			—			3,199,122
Goodwill and intangible assets, net		38,039		149,481			—			187,520
Long-term derivative asset		58,930		361			—			59,291
Investment in Laurel Mountain joint venture		—		132,990			—			132,990
Long-term portion of deferred tax asset		29,734		—			—			29,734
Investment in subsidiaries		110,691		—			(110,691	)		—
Other assets, net		40,719		30,374			—			71,093
Long-term assets of discontinued operations		—		379,030			—			379,030
	$	2,405,249	$	2,135,860		$	(134,946	)	$	4,406,163
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	32,255		$	(24,255	)	$	8,000
Accounts payable		76,820		19,556			—			96,376
Liabilities associated with drilling contracts		122,532		—			—			122,532
Accrued producer liabilities		—		57,430			—			57,430
Current portion of derivative liability		4,652		33,833			—			38,485
Current portion of derivative payable to Partnerships		22,382		—			—			22,382
Accrued interest		29,245		9,653			—			38,898
Accrued well drilling and completion costs		89,261		—			—			89,261
Current portion of deferred tax liability		26,415		—			—			26,415
Accrued and other current liabilities		31,594		13,520			—			45,114
Current liabilities of discontinued operations		—		13,181			—			13,181
Total current liabilities		402,901		179,428			(24,255	)		558,074
Long-term debt, less current portion		786,390		1,254,182			—			2,040,572
Long-term derivative liability		14,315		11,126			—			25,441
Long-term derivative payable to Partnerships		22,380		—			—			22,380
Other long-term liabilities		55,782		398			—			56,180
Shareholders’ equity:
Shareholders’ equity (deficit)		1,065,290		(7,755	)		7,755			1,065,290
Accumulated other comprehensive income (loss)		58,022		(6,550	)		6,550			58,022
		1,123,312		(14,305	)		14,305			1,123,312
Non-controlling interests		169		705,031			(124,996	)		580,204
Total shareholders’ equity		1,123,481		690,726			(110,691	)		1,703,516
	$	2,405,249	$	2,135,860		$	(134,946	)	$	4,406,163

ATLAS ENERGY RESOURCES, LLC

STAND-ALONE CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(unaudited; in thousands, except per unit data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Revenues:
Gas and oil production	$	67,503		$	65,986		$	200,600		$	207,908
Well construction and completion		60,748			81,496			176,685			257,231
Gathering		5,262			6,098			15,501			16,210
Administration and oversight		3,561			3,149			7,473			9,644
Well services		6,008			5,012			17,063			14,911
Other, net		75			201			1,146			280
Total revenues		143,157			161,942			418,468			506,184
Costs and expenses:
Gas and oil production		13,799			12,129			39,179			39,421
Well construction and completion		51,481			69,138			149,724			218,236
Gathering		7,522			7,973			22,398			18,951
Well services		2,796			2,378			8,071			6,922
General and administrative		15,533			20,573			42,595			47,390
Depreciation, depletion and amortization		30,257			24,563			87,232			79,866
Total costs and expenses		121,388			136,754			349,199			410,786
Operating income		21,769			25,188			69,269			95,398
Gain (loss) on asset sales		609			(1,444	)		286,308			(5,694	)
Interest expense		(17,387	)		(19,161	)		(52,406	)		(47,269	)
Net income		4,991			4,583			303,171			42,435
Income attributable to non-controlling interests		(10	)		(14	)		(39	)		(44	)
Net income attributable to owner’s/members’ interests	$	4,981		$	4,569		$	303,132		$	42,391
Allocation of net income attributable to owner’s/members’ interests:
Portion allocable to members’ interests (period prior to Merger on September 29, 2009)	$	—		$	4,519		$	—		$	42,341
Portion allocable to owner’s interest (period subsequent to Merger on September 29, 2009)		4,981			50			303,132			50
Net income attributable to owner’s/members’ interests	$	4,981		$	4,569		$	303,132		$	42,391
Allocation of net income attributable to members’ interests:
Class A member’s units	$	—		$	90		$	—		$	(7,109	)
Class B members’ units		—			4,429			—			49,450
Net income attributable to members’ interests	$	—		$	4,519		$	—		$	42,341
Net income attributable to Class B members per unit:
Basic	$	—		$	0.07		$	—		$	0.78
Diluted	$	—		$	0.07		$	—		$	0.78
Weighted average Class B members’ units outstanding:
Basic		—			63,381			—			63,381
Diluted		—			63,452			—			63,405

ATLAS ENERGY RESOURCES, LLC

STAND-ALONE CONDENSED CONSOLIDATED BALANCE SHEET DATA

(unaudited; in thousands)

	September 30, 2010		December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	78,907	$	3,640
Accounts receivable		75,936		71,058
Current portion of derivative receivable from Partnerships		56		270
Current portion of derivative asset		103,598		73,066
Subscriptions receivable from Partnerships		—		47,275
Inventory		12,775		12,207
Prepaid expenses and other		3,978		3,414
Total current assets		275,250		210,930
Property, plant and equipment, net		2,004,437		1,871,418
Other assets, net		19,193		20,906
Advances to affiliates		26,079		5,689
Long-term derivative asset		108,766		58,930
Long-term portion of derivative receivable from Partnerships		5,481		2,841
Intangible assets, net		2,341		2,873
Goodwill, net		35,166		35,166
	$	2,476,713	$	2,208,753
LIABILITIES AND OWNER’S EQUITY
Current liabilities:
Accounts payable	$	95,941	$	76,993
Accrued interest		11,223		29,245
Accrued liabilities		10,878		14,308
Liabilities associated with drilling contracts		95,189		122,532
Accrued well drilling and completion costs		65,373		89,261
Current portion of derivative payable to Partnerships		36,637		22,382
Current portion of derivative liability		2,069		4,652
Total current liabilities		317,310		359,373
Long-term debt, less current portion		678,193		786,390
Long-term derivative payable to Partnerships		43,055		22,380
Long-term derivative liability		25,378		14,315
Asset retirement obligations		54,200		51,813
Commitments and contingencies
Owner’s equity:
Owner’s equity		1,176,302		873,170
Accumulated other comprehensive income		182,130		101,143
		1,358,432		974,313
Non-controlling interests		145		169
Total owner’s equity		1,358,577		974,482
	$	2,476,713	$	2,208,753

ATLAS ENERGY, INC.

Ownership Interests Summary

Atlas Energy Ownership Interests as of September 30, 2010:	Amount			Overall Ownership Interest Percentage
ATLAS PIPELINE HOLDINGS(1):
General partner interest		100	%		N/A
Common units		17,808,109			64.3	%
Total					64.3	%
ATLAS PIPELINE:
Atlas Energy directly-owned common units		1,112,000			2.1	%
Atlas Pipeline 12% Cumulative Preferred Units ($1,000 par value)		8,000			N/A
LIGHTFOOT CAPITAL PARTNERS, GP LLC:
Approximate ownership interest					18.0	%
(1)Atlas Pipeline Holdings directly owns the following ownership interests in Atlas Pipeline Partners:
General partner interest		100	%		1.9	%
Common units		5,754,253			10.8	%
Incentive distribution rights		100	%		N/A
Total Atlas Pipeline Holdings direct ownership interests in Atlas Pipeline					12.7	%