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United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2011
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 000-50700
 ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    54-2113989
(I.R.S. Employer
Identification No.)Westpointe Corporate Center One 
1550 Coraopolis Heights Rd. 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (zip code)
 (412) 262-2830
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ
 o þ




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1:
Financial StatementsBalance Sheets as of March 31, 2011 and December 31, 2010
    
    
    3Statements of Operations for the Three Months Ended March 31, 2011 and 2010
    
    
    4Statement of Changes in Partners Capital for the Three Months ended March 31, 2011
    
    
    5Statements of Cash Flows for the Three Months ended March 31, 2011 and 2010
    
    
    6Notes to Financial Statements
    
    
    7-14Item 2: Managements Discussion and Analysis of Financial Condition or Plan of Operations
    
    
    15-18Item 4: Controls and Procedures
    
    
    18PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    18Item 6: Exhibits
    
    
    19SIGNATURES
    
    
    20CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 BALANCE SHEETS
 March 31,
    
    
    December 31,2011
    
    
    2010(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    
    131,100
    
    
    $
    152,500Accounts receivable-affiliate
    
    
    618,100
    
    
    
    401,800Short-term hedge receivable due from affiliate
    
    
    
    
    
    
    380,300Total current assets
    
    
    749,200
    
    
    
    934,600Oil and gas properties, net
    
    
    6,107,000
    
    
    
    6,218,100Long-term hedge receivable due from affiliate
    
    
    
    
    
    
    371,400Long-term receivable due from affiliate
    
    
    271,000
    
    
    
    $
    7,127,200
    
    
    $
    7,524,100LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    13,500
    
    
    $
    13,200Short-term hedge liability due to affiliate
    
    
    
    
    
    
    1,600Total current liabilities
    
    
    13,500
    
    
    
    14,800Asset retirement obligation
    
    
    3,146,900
    
    
    
    3,100,400Long-term hedge liability due to affiliate
    
    
    
    
    
    
    63,400Partners capital:Managing general partner
    
    
    5,128,400
    
    
    
    5,428,400Limited partners (4,024 units)
    
    
    (1,382,300
    )
    
    
    (1,131,000
    )Accumulated other comprehensive income
    
    
    220,700
    
    
    
    48,100Total partners capital
    
    
    3,966,800
    
    
    
    4,345,500$
    7,127,200
    
    
    $
    7,524,100
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENTS OF OPERATIONS

(Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010REVENUESNatural gas and oil
    
    $
    353,900
    
    
    $
    543,300Interest income
    
    
    100
    
    
    
    100Total revenues
    
    
    354,000
    
    
    
    543,400COSTS AND EXPENSESProduction
    
    
    272,700
    
    
    
    321,200Depletion
    
    
    111,100
    
    
    
    227,600Accretion of asset retirement obligation
    
    
    46,500
    
    
    
    36,900General and administrative
    
    
    58,300
    
    
    
    56,500Total costs and expenses
    
    
    488,600
    
    
    
    642,200Net loss
    
    $
    (134,600
    )
    
    $
    (98,800
    )Allocation of net loss:Managing general partner
    
    $
    (34,400
    )
    
    $
    12,900Limited partners
    
    $
    (100,200
    )
    
    $
    (111,700
    )Net loss per limited partnership unit
    
    $
    (25
    )
    
    $
    (28
    )
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL

FOR THE THREE MONTHS ENDED
 March 31, 2011
(Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income
    
    
    TotalBalance at January 1, 2011
    
    $
    5,428,400
    
    
    $
    (1,131,000
    )
    
    $
    48,100
    
    
    $
    4,345,500Participation in revenues and expenses:Net production revenues
    
    
    18,500
    
    
    
    62,700
    
    
    
    
    
    
    
    81,200Interest income
    
    
    
    
    
    
    100
    
    
    
    
    
    
    
    100Depletion
    
    
    (16,300
    )
    
    
    (94,800
    )
    
    
    
    
    
    
    (111,100
    )Accretion of asset retirement obligation
    
    
    (16,300
    )
    
    
    (30,200
    )
    
    
    
    
    
    
    (46,500
    )General and administrative
    
    
    (20,300
    )
    
    
    (38,000
    )
    
    
    
    
    
    
    (58,300
    )Net loss
    
    
    (34,400
    )
    
    
    (100,200
    )
    
    
    
    
    
    
    (134,600
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    172,600
    
    
    
    172,600Distributions to partners
    
    
    (265,600
    )
    
    
    (151,100
    )
    
    
    
    
    
    
    (416,700
    )Balance at March 31, 2011
    
    $
    5,128,400
    
    
    $
    (1,382,300
    )
    
    $
    220,700
    
    
    $
    3,966,800
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENTS OF CASH FLOWS

(Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010Cash flows from operating activities:Net loss
    
    $
    (134,600
    )
    
    $
    (98,800
    )Adjustments to reconcile net loss to net cash provided by operating activities:Depletion
    
    
    111,100
    
    
    
    227,600Non-cash loss on derivative value
    
    
    112,400
    
    
    
    119,600Accretion of asset retirement obligation
    
    
    46,500
    
    
    
    36,900Decrease (increase) in accounts receivable  affiliate
    
    
    75,400
    
    
    
    (4,300
    )Increase (decrease) in accrued liabilities
    
    
    300
    
    
    
    (6,900
    )Net cash provided by operating activities
    
    
    211,100
    
    
    
    274,100Cash flows from financing activities:Distributions to partners
    
    
    (232,500
    )
    
    
    (263,900
    )Net cash used in financing activities
    
    
    (232,500
    )
    
    
    (263,900
    )Net (decrease) increase in cash and cash equivalents
    
    
    (21,400
    )
    
    
    10,200Cash and cash equivalents at beginning of period
    
    
    152,500
    
    
    
    175,000Cash and cash equivalents at end of period
    
    $
    131,100
    
    
    $
    185,200Supplemental Schedule of non-cash operating and financing activities:Distribution to managing general partner
    
    $
    184,200
    
    
    $
    
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 NOTES TO FINANCIAL STATEMENTS
March 31, 2011
 (Unaudited)
 NOTE 1  DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
    NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Use of Estimates
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Use of Estimates (Continued)
  Accounts Receivable and Allowance for Possible Losses
  Oil and Gas Properties
   March 31,
    
    
    December 31,2011
    
    
    2010Proved properties:Leasehold interests
    
    $
    1,131,600
    
    
    $
    1,131,600Wells and related equipment
    
    
    52,145,600
    
    
    
    52,145,60053,277,200
    
    
    
    53,277,200Accumulated depletion
    
    
    (47,170,200
    )
    
    
    (47,059,100
    )$
    6,107,000
    
    
    $
    6,218,100
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Impairment of Long-Lived Assets
    Working Interest
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Revenue Recognition
   Recently Adopted Accounting Standards
  NOTE 3  ASSET RETIREMENT OBLIGATION
   Three Months EndedMarch 31,2011
    
    
    2010Asset retirement obligation at beginning of period
    
    $
    3,100,400
    
    
    $
    2,457,900Accretion expense
    
    
    46,500
    
    
    
    36,900Asset retirement obligation at end of period
    
    $
    3,146,900
    
    
    $
    2,494,800
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 4  COMPREHENSIVE INCOME
  Three Months EndedMarch 31,2011
    
    
    2010Net loss
    
    $
    (134,600
    )
    
    $
    (98,800
    )Other comprehensive income:Unrealized holding gains on hedging contracts
    
    
    241,700
    
    
    
    654,100Less: reclassification adjustment for gains realized in net loss
    
    
    (69,100
    )
    
    
    (34,800
    )Total other comprehensive income
    
    
    172,600
    
    
    
    619,300Comprehensive income
    
    $
    38,000
    
    
    $
    520,500
 NOTE 5  DERIVATIVE INSTRUMENTS
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
  Fair Value of Derivative Instruments:
 Fair ValueBalance Sheet
    
    December 31,Derivatives in Cash Flow Hedging Relationships
    
    Location
    
    2010Derivative Commodity Contracts
    
    Current Assets
    
    $
    380,300Long-Term Assets
    
    
    371,400751,700Current liabilities
    
    
    (1,600
    )Long-term liabilities
    
    
    (63,400
    )(65,000
    )Total
    
    $
    686,700
 Effects of Derivative Instruments on statements of operations:
 Gain
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Loss(Effective Portion)
    
    
    Location of Gain/Loss
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    Three Months EndedCash Flow
    
    March 31,
    
    
    March 31,
    
    
    OCI into Income
    
    March 31,
    
    
    March 31,Hedging Relationships
    
    2011
    
    
    2010
    
    
    (Effective Portion)
    
    2011
    
    
    2010Commodity Contracts
    
    $
    241,700
    
    
    $
    654,100
    
    
    Natural Gas and Oil Revenue
    
    $
    69,100
    
    
    $
    34,800
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2
 Level 3
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 Note 5).
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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES
  
    
    Administrative costs which are included in general and administrative expenses in the
Partnerships statements of operations are payable at $75 per well per month.
Administrative costs incurred for both the three months ended March 31, 2011 and 2010
were $40,700 and $43,500, respectively.
 
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships statements of operations are payable at $313 per well per month,
respectively, for operating and maintaining the wells. Well supervision fees incurred
for the three months ended March 31, 2011 and 2010 were $170,100 and $181,600,
respectively.
 
    
    Transportation fees which are included in production expenses in the Partnerships
statements of operations are generally payable at 13% of the natural gas sales price.
Transportation fees incurred for the three months ended March 31, 2011 and 2010 were
$49,700 and $74,600, respectively.
  Subordination by Managing General Partner
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ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (UNAUDITED)
 Forward-Looking Statements
 When used in this Form 10-Q , the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. These risks and uncertainties
could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
  General
     15




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Results of Operations
  Three Months EndedMarch 31,2011
    
    
    2010Production revenues (in thousands):Gas
    
    $
    336
    
    
    $
    543Oil
    
    
    18
    
    
    
    Total
    
    $
    354
    
    
    $
    543Production volumes:Gas (mcf/day) (1)
    
    
    799
    
    
    
    1,114Oil (bbls/day) (1)
    
    
    2
    
    
    
    Total (mcfe/day) (1)
    
    
    811
    
    
    
    1,114Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.24
    
    
    $
    6.61Oil (per bbl) (1) (4)
    
    $
    88.27
    
    
    $
    Average production costs:As a percent of revenues
    
    
    77
    %
    
    
    59
    %Per mcfe (1)
    
    $
    3.73
    
    
    $
    3.20Depletion per mcfe
    
    $
    1.52
    
    
    $
    2.27
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(3)
    
    Average gas prices are calculated by including in total revenue derivative gains
and losses previously recognized into income and dividing by the total volume for the
period. Previously recognized derivative gains of $112,400 and $119,400 was recognized
for the three months ended March 31, 2011 and 2010, respectively. The derivative gains
and losses are included in other comprehensive income and resulted from prior period
impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
There was no previously recognized derivative gain for the three months ended March 31,
2011. Previously recognized derivative gain of $200 was recognized for the three months
ended March 31, 2010. The derivative gains are included in other comprehensive income
and resulted from prior period impairment charges. Natural Gas Revenues.
 Oil Revenues.
  16




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Costs and Expenses.
   Liquidity and Capital Resources
     Critical Accounting Policies
   17




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Subordination by Managing General Partner
  
 ITEM 4.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
  
 PART II. OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
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ITEM 6.
    
    EXHIBITS
 
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
Amended and Restated Certificate and Agreement of Limited Partnership for Public #12-2003 Limited Partnership (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Public #12-2003 Limited Partnership (1)31.1
    
    
    Certification Pursuant to Rule 13a-14/15(d)-1431.2
    
    
    Certification Pursuant to Rule 13a-14/15(d)-1432.1
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 200232.2
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
 
 (1)
    
    Filed on September 3, 2003 in the Form S-1 Registration Statement dated September 3, 2003, File No. 333-105811  19




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SIGNATURES
   Atlas Resources, LLC, Managing General PartnerDate:  May 13, 2011
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the Board of Directors, Chief Executive Officer and President  Date:  May 13, 2011
    By:
    /s/ Jeffrey C. SimmonsJeffrey C. Simmons, Executive Vice President, OperationsDate:  May 13, 2011
    By:
    /s/ Sean P. McGrathSean P. McGrath, Chief Financial Officer  20