Philadelphia-based Atlas Energy Group LLC (ATLS), which owns all of the general partner interest, distribution rights and a 23% limited partner interest in its upstream subsidiary, Atlas Resource Partners LP (ARP), has fallen below the New York Stock Exchange's (NYSE) continued listing standards.
The company is the latest to join a growing list of oil- and gas-focused businesses that have either been delisted, or faced the prospect, as they struggle with debt, underperforming assets and other fallout from the commodity downturn. In the ATLS case, NYSE notified the company on Dec. 23, saying its market capitalization and stockholder equity had fallen below the $50 million minimum over a consecutive 30-day trading period.
The company can now submit a plan to NYSE within 45 days of the notice to demonstrate its ability to regain compliance with the listing standards within 18 months. NYSE would then have 45 days to review and determine whether the plan can reasonably meet its standards in that time.
The notice comes just months after ARP and related subsidiaries were spun off from parent company Atlas Energy LP, which along with its midstream assets merged with a Targa Resources Corp. affiliate in a $7 billion-plus deal that was completed last February (see Shale Daily, Oct. 14, 2014). ATLS also owns the general partner interests in Atlas Growth Partners LP and Lightfoot Capital Partners, an entity that invests directly in energy-related businesses and assets.
ARP was formed in 2011 after Atlas Energy Inc. sold more than one million acres to Chevron Corp., giving the major entry into shale plays with sizable chunks of land in the Appalachian Basin and elsewhere (see Shale Daily, Feb. 17, 2011). ARP still has 1.7 Tcfe of proved reserves and an interest in more than 14,000 producing wells in 17 different states that include assets in the Barnett, Eagle Ford, Marcellus and Utica shales, among others.
While NYSE's notice does not apply to ARP, which is a separately traded company, both have performed poorly on the exchange in recent months. The market capitalization of ATLS currently stands at about $21 million and its shares have a 52-week low of 62 cents. ARP units have traded at a 52-week low of 62 cents each. Both companies were trading below $1 on Thursday.
NYSE would either accept the company’s plan, at which time ATLS would be subject to ongoing monitoring, or it would transition to another exchange, if not. The company said it intends to submit such a plan to NYSE by the deadline.