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United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 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 0-51271
 ATLAS AMERICA SERIES 25-2004 (B) L.P.
  Delaware
    
    34-1980376(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 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




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##### 



ATLAS AMERICA SERIES 25-2004 (B) L.P.
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1: Financial StatementsBalance Sheets as of September 30, 2010 and December 31, 2009
    
    3Statements of Operations for the Three Months and Nine Months ended September 30,
2010 and 2009
    
    4Statement of Changes in Partners Capital for the Nine Months ended September 30, 2010
    
    5Statements of Cash Flows for the Nine Months ended September 30, 2010 and 2009
    
    6Notes to Financial Statements
    
    7-17Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    17-21Item 4: Controls and Procedures
    
    21PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    22Item 6: Exhibits
    
    22SIGNATURES
    
    23CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART 1. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 BALANCE SHEETS
 September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    57,600
    
    
    $
    116,400Accounts receivable-affiliate
    
    
    399,500
    
    
    
    438,400Short-term hedge receivable due from affiliate
    
    
    581,200
    
    
    
    375,200Total current assets
    
    
    1,038,300
    
    
    
    930,000Oil and gas properties, net
    
    
    10,519,800
    
    
    
    11,240,000Long-term hedge receivable due from affiliate
    
    
    610,400
    
    
    
    308,500$
    12,168,500
    
    
    $
    12,478,500LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    25,900
    
    
    $
    36,100Short-term hedge liability due to affiliate
    
    
    1,700
    
    
    
    4,500Total current liabilities
    
    
    27,600
    
    
    
    40,600Asset retirement obligation
    
    
    1,798,500
    
    
    
    1,721,100Long-term hedge liability due to affiliate
    
    
    100,100
    
    
    
    47,300Partners capital:Managing general partner
    
    
    3,140,100
    
    
    
    3,343,600Limited partners (1,265.38 units)
    
    
    6,071,400
    
    
    
    6,811,100Accumulated other comprehensive income
    
    
    1,030,800
    
    
    
    514,800Total partners capital
    
    
    10,242,300
    
    
    
    10,669,500$
    12,168,500
    
    
    $
    12,478,500
   3




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    486,300
    
    
    $
    466,800
    
    
    $
    1,555,100
    
    
    $
    1,816,200Total revenues
    
    
    486,300
    
    
    
    466,800
    
    
    
    1,555,100
    
    
    
    1,816,200COSTS AND EXPENSESProduction
    
    
    262,000
    
    
    
    217,700
    
    
    
    771,700
    
    
    
    790,200Depletion
    
    
    233,900
    
    
    
    191,000
    
    
    
    721,400
    
    
    
    668,200Accretion of asset retirement obligation
    
    
    25,800
    
    
    
    22,700
    
    
    
    77,400
    
    
    
    68,200General and administrative
    
    
    39,800
    
    
    
    42,400
    
    
    
    129,400
    
    
    
    129,600Total expenses
    
    
    561,500
    
    
    
    473,800
    
    
    
    1,699,900
    
    
    
    1,656,200Net (loss) earnings
    
    $
    (75,200
    )
    
    $
    (7,000
    )
    
    $
    (144,800
    )
    
    $
    160,000Allocation of net (loss) earnings:Managing general partner
    
    $
    7,900
    
    
    $
    25,800
    
    
    $
    54,800
    
    
    $
    154,900Limited partners
    
    $
    (83,100
    )
    
    $
    (32,800
    )
    
    $
    (199,600
    )
    
    $
    5,100Net (loss) earnings per limited partnership unit
    
    $
    (66
    )
    
    $
    (26
    )
    
    $
    (158
    )
    
    $
    4
   4




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
FOR THE NINE MONTHS ENDED
September 30, 2010
(Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income
    
    
    TotalBalance at January 1, 2010
    
    $
    3,343,600
    
    
    $
    6,811,100
    
    
    $
    514,800
    
    
    $
    10,669,500Participation in revenues and expenses:Net production revenues
    
    
    274,200
    
    
    
    509,200
    
    
    
    
    
    
    
    783,400Depletion
    
    
    (147,000
    )
    
    
    (574,400
    )
    
    
    
    
    
    
    (721,400
    )Accretion of asset retirement obligation
    
    
    (27,100
    )
    
    
    (50,300
    )
    
    
    
    
    
    
    (77,400
    )General and administrative
    
    
    (45,300
    )
    
    
    (84,100
    )
    
    
    
    
    
    
    (129,400
    )Net earnings (loss)
    
    
    54,800
    
    
    
    (199,600
    )
    
    
    
    
    
    
    (144,800
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    516,000
    
    
    
    516,000Asset contributed by MGP
    
    
    1,200
    
    
    
    
    
    
    
    
    
    
    
    1,200Distributions to partners
    
    
    (259,500
    )
    
    
    (540,100
    )
    
    
    
    
    
    
    (799,600
    )Balance at September 30, 2010
    
    $
    3,140,100
    
    
    $
    6,071,400
    
    
    $
    1,030,800
    
    
    $
    10,242,300
   5




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 STATEMENTS OF CASH FLOWS
(Unaudited)
 Nine Months EndedSeptember 30,2010
    
    
    2009Cash flows from operating activities:Net (loss) earnings
    
    $
    (144,800
    )
    
    $
    160,000Adjustments to reconcile net (loss) earnings to
net cash provided by operating activities:Depletion
    
    
    721,400
    
    
    
    668,200Non-cash loss on derivative value
    
    
    58,100
    
    
    
    292,800Accretion of asset retirement obligation
    
    
    77,400
    
    
    
    68,200Decrease in accounts receivable  affiliate
    
    
    38,900
    
    
    
    356,000(Decrease) increase in accrued liabilities
    
    
    (10,200
    )
    
    
    5,900Net cash provided by operating activities
    
    
    740,800
    
    
    
    1,551,100Cash flows from financing activities:Distributions to partners
    
    
    (799,600
    )
    
    
    (1,680,700
    )Net cash used in financing activities
    
    
    (799,600
    )
    
    
    (1,680,700
    )Net decrease in cash and cash equivalents
    
    
    (58,800
    )
    
    
    (129,600
    )Cash and cash equivalents at beginning of period
    
    
    116,400
    
    
    
    265,100Cash and cash equivalents at end of period
    
    $
    57,600
    
    
    $
    135,500Supplemental schedule of non-cash
investing and financing activities:Assets contributed by managing general partner:Tangible equipment
    
    $
    1,200
    
    
    $
    $
    1,200
    
    
    $
    
   6




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ATLAS AMERICA SERIES 25-2004(B) L.P.
 
 NOTES TO FINANCIAL STATEMENTS
September 30, 2010
 (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Use of Estimates
   Fair Value of Financial Instruments
   7




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Oil and Gas Properties
   Impairment of Long-Lived Assets
      8




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Working Interest
  Revenue Recognition
   Comprehensive Income (Loss)
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net (loss) earnings
    
    $
    (75,200
    )
    
    $
    (7,000
    )
    
    $
    (144,800
    )
    
    $
    160,000Other comprehensive income (loss):Unrealized holding gain (loss)
on hedging contracts
    
    
    361,800
    
    
    
    26,600
    
    
    
    846,800
    
    
    
    (7,900
    )Less: reclassification
adjustment for gains realized in
net (loss) earnings
    
    
    (98,300
    )
    
    
    (111,500
    )
    
    
    (330,800
    )
    
    
    (392,100
    )Total other comprehensive income (loss)
    
    
    263,500
    
    
    
    (84,900
    )
    
    
    516,000
    
    
    
    (400,000
    )Comprehensive income (loss)
    
    $
    188,300
    
    
    $
    (91,900
    )
    
    $
    371,200
    
    
    $
    (240,000
    )
  9




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards
      10




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Issued Accounting Standards
   NOTE 3  OIL AND GAS PROPERTIES
  September 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    898,600
    
    
    $
    898,600Wells and related equipment
    
    
    40,440,200
    
    
    
    40,439,00041,338,800
    
    
    
    41,337,600Accumulated depletion
    
    
    (30,819,000
    )
    
    
    (30,097,600
    )$
    10,519,800
    
    
    $
    11,240,000
  11




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 4  ASSET RETIREMENT OBLIGATIONS
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of period
    
    $
    1,772,700
    
    
    $
    1,561,700
    
    
    $
    1,721,100
    
    
    $
    1,516,200Accretion expense
    
    
    25,800
    
    
    
    22,700
    
    
    
    77,400
    
    
    
    68,200Asset retirement obligation at end of period
    
    $
    1,798,500
    
    
    $
    1,584,400
    
    
    $
    1,798,500
    
    
    $
    1,584,400
 NOTE 5  DERIVATIVE INSTRUMENTS
   12




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
    Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    
    
    Liability DerivativesDerivatives in
    
    
    
    Fair Value
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    September 30,
    
    
    December 31,
    
    
    Balance sheet
    
    September 30,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity Contracts
    
    Current Assets
    
    $
    581,200
    
    
    $
    375,200
    
    
    Current liabilities
    
    $
    (1,700
    )
    
    $
    (4,500
    )Long-Term Assets
    
    
    610,400
    
    
    
    308,500
    
    
    Long-term liabilities
    
    
    (100,100
    )
    
    
    (47,300
    )Total Derivatives
    
    
    
    $
    1,191,600
    
    
    $
    683,700
    
    
    
    
    $
    (101,800
    )
    
    $
    (51,800
    )
 Effects of Derivative Instruments on Statements of Operations:
 GainGain
Recognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from Accumulated 
OCI into (Loss) Earnings(Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    
    Three Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into (Loss) Earnings
    
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    
    2009Commodity Contracts
    
    $
    361,800
    
    
    $
    26,600
    
    
    Natural Gas and Oil Revenue
    
    
    $
    98,300
    
    
    $
    111,500
  13




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 GainGain/(Loss)
Recognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from Accumulated 
OCI into (Loss) Earnings(Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Derivatives in
    
    Nine Months Ended
    
    
    Reclassified from Accumulated
    
    
    Nine Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into (Loss) Earnings
    
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    
    2009Commodity Contracts
    
    $
    846,800
    
    
    $
    (7,900
    )
    
    Natural Gas and Oil Revenue
    
    
    $
    330,800
    
    
    $
    392,100
  Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    
    
    53,600
    
    
    $
    7.236
    
    
    $
    176,4002011
    
    
    
    
    142,900
    
    
    
    6.845
    
    
    
    343,6002012
    
    
    
    
    96,000
    
    
    
    7.172
    
    
    
    200,2002013
    
    
    
    
    53,900
    
    
    
    6.544
    
    
    
    65,7002014
    
    
    
    
    23,500
    
    
    
    5.899
    
    
    
    10,800$
    796,700
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset (Liability)(2)2010
    
    Puts purchased
    
    
    9,100
    
    
    $
    5.774
    
    
    $
    17,2002010
    
    Calls sold
    
    
    9,100
    
    
    
    6.996
    
    
    
    (100
    )2011
    
    Puts purchased
    
    
    66,200
    
    
    
    6.441
    
    
    
    139,6002011
    
    Calls sold
    
    
    66,200
    
    
    
    7.551
    
    
    
    (3,000
    )2012
    
    Puts purchased
    
    
    59,500
    
    
    
    6.013
    
    
    
    89,7002012
    
    Calls sold
    
    
    59,500
    
    
    
    7.183
    
    
    
    (19,800
    )2013
    
    Puts purchased
    
    
    69,700
    
    
    
    5.749
    
    
    
    103,7002013
    
    Calls sold
    
    
    69,700
    
    
    
    6.937
    
    
    
    (49,400
    )2014
    
    Puts purchased
    
    
    25,600
    
    
    
    5.613
    
    
    
    39,1002014
    
    Calls sold
    
    
    25,600
    
    
    
    6.724
    
    
    
    (26,100
    )$
    290,900
  14




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    
    
    50
    
    
    $
    97.061
    
    
    $
    9002011
    
    
    
    
    200
    
    
    
    88.498
    
    
    
    6002012
    
    
    
    
    100
    
    
    
    88.093
    
    
    
    1002013
    
    
    
    
    50
    
    
    
    88.398
    
    
    
    1002014
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,700
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset (Liability)(3)2010
    
    Puts purchased
    
    
    50
    
    
    $
    85.000
    
    
    $
    2002010
    
    Calls sold
    
    
    50
    
    
    
    112.220
    
    
    
    2011
    
    Puts purchased
    
    
    100
    
    
    
    77.563
    
    
    
    6002011
    
    Calls sold
    
    
    100
    
    
    
    101.861
    
    
    
    (400
    )2012
    
    Puts purchased
    
    
    100
    
    
    
    76.952
    
    
    
    7002012
    
    Calls sold
    
    
    100
    
    
    
    102.368
    
    
    
    (600
    )2013
    
    Puts purchased
    
    
    50
    
    
    
    76.952
    
    
    
    2002013
    
    Calls sold
    
    
    50
    
    
    
    103.269
    
    
    
    (200
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    500Total Net Asset
    
    
    $
    1,089,800
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices, as applicable.(3)
    
    Fair value based on forward WTI crude oil prices, as applicable.  15




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1Unadjusted quoted prices in active markets for identical, unrestricted assets and
liabilities that the reporting entity has the ability to access at the measurement date.
 Level 2 Inputs other than quoted prices included within Level 1 that are observable for
the asset and liability or can be corroborated with observable market data for substantially
the entire contractual term of the asset or liability.
 Level 3 Unobservable inputs that reflect the entitys own assumptions about the assumption
market participants would use in the pricing of the asset or liability and are consequently
not based on market activity but rather through particular valuation techniques.
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    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 the three months and nine months ended September 30,
2010 were $30,800 and $92,300, respectively. Administrative costs incurred for the three
months and nine months ended September 30, 2009 were $20,700 and $84,100, 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 for
operating and maintaining the wells. Well supervision fees incurred for the three months
and nine months ended September 30, 2010 were $126,900 and $379,700, respectively. Well
supervision fees incurred for the three months and nine months ended September 30, 2009
were $84,200 and $345,000, 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 and nine months ended September 30,
2010 were $51,700 and $161,600, respectively. Transportation fees incurred for the three
months and nine months ended September 30, 2009 were $68,200 and $227,800, respectively.
    
    Assets contributed by the MGP, which are disclosed in the Partnerships statement of
cash flows as a non-cash activity for the nine months ended September 30, 2010, were
$1,200.
  16




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ATLAS AMERICA SERIES 25-2004(B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Continued)
 
  Subordination by Managing General Partner
  NOTE 8  COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
   NOTE 9 — SUBSEQUENT EVENT-MERGER AGREEMENT
 )
    
 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. There are risks and uncertainties
that 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.
  17




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##### Table of Contents



BUSINESS OVERVIEW
   Results of Operations
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    429
    
    
    $
    426
    
    
    $
    1,410
    
    
    $
    1,705Oil
    
    
    57
    
    
    
    41
    
    
    
    145
    
    
    
    111Total
    
    $
    486
    
    
    $
    467
    
    
    $
    1,555
    
    
    $
    1,816Production volumes:Gas (mcf/day) (1)
    
    
    731
    
    
    
    696
    
    
    
    768
    
    
    
    828Oil (bbls/day) (1)
    
    
    8
    
    
    
    7
    
    
    
    7
    
    
    
    7Total (mcfe/day) (1)
    
    
    779
    
    
    
    738
    
    
    
    810
    
    
    
    870Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.88
    
    
    $
    8.81
    
    
    $
    7.00
    
    
    $
    8.82Oil (per bbl) (1) (4)
    
    $
    78.57
    
    
    $
    66.02
    
    
    $
    76.43
    
    
    $
    59.51Average production costs:As a percent of revenues
    
    
    54
    %
    
    
    47
    %
    
    
    50
    %
    
    
    44
    %Per mcfe (1)
    
    $
    3.66
    
    
    $
    3.21
    
    
    $
    3.49
    
    
    $
    3.33Depletion per mcfe
    
    $
    3.26
    
    
    $
    2.81
    
    
    $
    3.26
    
    
    $
    2.81
 (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
previously recognized into (loss) earnings and dividing by the total volume for the
period. Previously recognized derivative gains were $33,800 and $139,000 for the three
months ended September 30, 2010 and 2009, respectively. Previously recognized
derivative gains were $56,400 and $289,800 for the nine months ended September 30, 2010
and 2009, respectively. The derivative gains are included in other comprehensive income
(loss) and resulted from prior period impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into (loss) earnings and dividing by the total volume for the
period. Previously recognized derivative gains were $600 and $900 for the three months
ended September 30, 2010 and 2009, respectively. Previously recognized derivative gains
were $1,700 and $3,000 for the nine months ended September 30, 2010 and 2009,
respectively. The derivative gains are included in other comprehensive income (loss)
and resulted from prior period impairment charges.  18




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Natural Gas Revenues.
  Oil Revenues.
  Expenses.
    19




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Liquidity and Capital Resources
     Subordination by Managing General Partner
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   20




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Fair Value of Financial Instruments
  Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets and
liabilities that the reporting entity has the ability to access at the measurement date.
 Level 2 Inputs other than quoted prices included within Level 1 that are observable for
the asset and liability or can be corroborated with observable market data for substantially
the entire contractual term of the asset or liability.
 Level 3 Unobservable inputs that reflect the entitys own assumptions about the assumption
market participants would use in the pricing of the asset or liability and are consequently
not based on market activity but rather through particular valuation techniques.
   
 ITEM 4.
    
    CONTROLS AND PROCEDURES
     21




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PART II. OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
   
 ITEM 6.
    
    EXHIBITS
 
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
    Amended and Restated Certificate and Agreement of Limited Partnership for Atlas America Series 25-2004
(B) L.P. (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Series 25-2004 (B) L.P. (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification.31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.
 (1)
    
    Filed on April 29, 2005 in the Form S-1 Registration Statement dated April 29, 2005, File No. 0-51271  22




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SIGNATURES
  Atlas America Series 25-2004 (B) L.P.
Atlas Resources, LLC, Managing General PartnerDate:  November 12, 2010
    By:
    /s/ FREDDIE M. KOTEKFreddie M. KotekChairman of the Board of Directors,
Chief Executive Officer and PresidentDate:  November 12, 2010
    By:
    /s/ MATTHEW A. JONESMatthew A. JonesChief Financial Officer  23