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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 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 333-150925-02
 ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
  Delaware
    
    26-3223040(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 RESOURCES PUBLIC 18-2009 (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 for the Three Months and the period April 16, 2009 through September 30, 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 the period April 16, 2009 through September 30, 2009
    
    
    6Notes to Financial Statements
    
    
    7-18Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18-22Item 4: Controls and Procedures
    
    
    22-23PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    23Item 6: Exhibits
    
    
    23SIGNATURES
    
    
    24CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART 1. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
 
 BALANCE SHEETS
 September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    300
    
    
    $
    4,442,800Accounts receivable  affiliate
    
    
    8,032,300
    
    
    
    8,479,500Short-term hedge receivable due from affiliate
    
    
    7,890,400
    
    
    
    5,260,100Total current assets
    
    
    15,923,000
    
    
    
    18,182,400Oil and gas properties, net
    
    
    97,792,100
    
    
    
    106,407,800Long-term hedge receivable due from affiliate
    
    
    8,423,700
    
    
    
    4,447,400$
    122,138,800
    
    
    $
    129,037,600LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    593,400
    
    
    $
    552,800Short-term hedge liability due to affiliate
    
    
    15,700
    
    
    
    64,100Total current liabilities
    
    
    609,100
    
    
    
    616,900Asset retirement obligation
    
    
    450,500
    
    
    
    431,100Long-term hedge liability due to affiliate
    
    
    1,327,200
    
    
    
    685,000Partners capital:Managing general partner
    
    
    9,045,800
    
    
    
    10,849,400Limited partners (12,278 units)
    
    
    95,897,300
    
    
    
    107,792,400Accumulated other comprehensive income
    
    
    14,808,900
    
    
    
    8,662,800Total partners capital
    
    
    119,752,000
    
    
    
    127,304,600$
    122,138,800
    
    
    $
    129,037,600
   3




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 PeriodThree Months
    
    
    Three Months
    
    
    Nine Months
    
    
    April 16, 2009Ended
    
    
    Ended
    
    
    Ended
    
    
    ThroughSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    6,562,600
    
    
    $
    5,712,200
    
    
    $
    26,261,600
    
    
    $
    5,725,700Interest income
    
    
    600
    
    
    
    
    
    
    
    3,300
    
    
    
    Total revenues
    
    
    6,563,200
    
    
    
    5,712,200
    
    
    
    26,264,900
    
    
    
    5,725,700COSTS AND EXPENSESProduction
    
    
    1,943,500
    
    
    
    1,112,600
    
    
    
    6,700,400
    
    
    
    1,118,500Depletion
    
    
    2,391,100
    
    
    
    2,284,800
    
    
    
    8,920,700
    
    
    
    2,290,200Accretion of asset retirement obligation
    
    
    6,500
    
    
    
    6,400
    
    
    
    19,400
    
    
    
    6,400General and administrative
    
    
    28,500
    
    
    
    26,400
    
    
    
    101,900
    
    
    
    31,100Total expenses
    
    
    4,369,600
    
    
    
    3,430,200
    
    
    
    15,742,400
    
    
    
    3,446,200Net earnings
    
    $
    2,193,600
    
    
    $
    2,282,000
    
    
    $
    10,522,500
    
    
    $
    2,279,500Allocation of net earnings:Managing general partner
    
    $
    1,224,700
    
    
    $
    1,168,200
    
    
    $
    5,249,300
    
    
    $
    1,167,700Limited partners
    
    $
    968,900
    
    
    $
    1,113,800
    
    
    $
    5,273,200
    
    
    $
    1,111,800Net earnings per limited partnership unit
    
    $
    79
    
    
    $
    91
    
    
    $
    429
    
    
    $
    90
   4




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ATLAS RESOURCES PUBLIC 18-2009 (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
    
    $
    10,849,400
    
    
    $
    107,792,400
    
    
    $
    8,662,800
    
    
    $
    127,304,600Partners capital contributions:Syndication and offering costs
    
    
    58,400
    
    
    
    
    
    
    
    
    
    
    
    58,400Total contributions
    
    
    58,400
    
    
    
    
    
    
    
    
    
    
    
    58,400Syndication and offering costs, immediately
charged to capital
    
    
    (58,400
    )
    
    
    
    
    
    
    
    
    
    
    (58,400
    )Participation in revenues and expenses:Net production revenues
    
    
    5,868,300
    
    
    
    13,692,900
    
    
    
    
    
    
    
    19,561,200Interest
    
    
    1,000
    
    
    
    2,300
    
    
    
    
    
    
    
    3,300Depletion
    
    
    (583,600
    )
    
    
    (8,337,100
    )
    
    
    
    
    
    
    (8,920,700
    )Accretion of asset retirement obligation
    
    
    (5,800
    )
    
    
    (13,600
    )
    
    
    
    
    
    
    (19,400
    )General and administrative
    
    
    (30,600
    )
    
    
    (71,300
    )
    
    
    
    
    
    
    (101,900
    )Net earnings
    
    
    5,249,300
    
    
    
    5,273,200
    
    
    
    
    
    
    
    10,522,500Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    6,146,100
    
    
    
    6,146,100Assets contributed
    
    
    305,000
    
    
    
    
    
    
    
    
    
    
    
    305,000Distribution to partners
    
    
    (7,357,900
    )
    
    
    (17,168,300
    )
    
    
    
    
    
    
    (24,526,200
    )Balance at September 30, 2010
    
    $
    9,045,800
    
    
    $
    95,897,300
    
    
    $
    14,808,900
    
    
    $
    119,752,000
   5




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 PeriodNine Months
    
    
    April 16, 2009Ended
    
    
    ThroughSeptember 30,
    
    
    September 30,2010
    
    
    2009Cash flows from operating activities:Net earnings
    
    $
    10,522,500
    
    
    $
    2,279,500Adjustments to reconcile net earnings to net cash provided by operating activities:Depletion
    
    
    8,920,700
    
    
    
    2,290,200Non-cash gain on derivative value
    
    
    133,300
    
    
    
    Accretion of asset retirement obligation
    
    
    19,400
    
    
    
    6,400Increase in accounts receivable-affiliate
    
    
    447,200
    
    
    
    (4,598,300
    )Increase in accrued liabilities
    
    
    40,600
    
    
    
    22,200Net cash provided by operating activities
    
    
    20,083,700
    
    
    
    Cash flows from investing activities:Oil and gas well drilling contract paid to MGP
    
    
    
    
    
    
    (122,554,200
    )Net cash used in financing activities
    
    
    
    
    
    
    (122,554,200
    )Cash flows from financing activities:Partners capital contribution
    
    
    
    
    
    
    122,554,200Distribution to partners
    
    
    (24,526,200
    )
    
    
    Net cash (used in) provided by financing activities
    
    
    (24,526,200
    )
    
    
    122,554,200Net decrease in cash and cash equivalents
    
    
    (4,442,500
    )
    
    
    Cash and cash equivalents at beginning of period
    
    
    4,442,800
    
    
    
    Cash and cash equivalents at end of period
    
    $
    300
    
    
    $
    Supplemental Schedule of non-cash investing and financing activities:Assets (returned to) contributed by managing general partner:Tangible drilling costs
    
    $
    327,600
    
    
    $
    1,166,300Lease costs
    
    
    (22,600
    )
    
    
    6,597,600Syndication and offering costs
    
    
    58,400
    
    
    
    13,915,300$
    363,400
    
    
    $
    21,679,200Asset retirement obligation
    
    $
    
    
    
    $
    426,200
   6




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ATLAS RESOURCES PUBLIC 18-2009 (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 RESOURCES PUBLIC 18-2009 (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 RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Impairment of Long-Lived Assets (Continued)
  Working Interest
  Revenue Recognition
    9




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Comprehensive Income
  PeriodThree Months
    
    
    Three Months
    
    
    Nine Months
    
    
    April 16, 2009Ended
    
    
    Ended
    
    
    Ended
    
    
    ThroughSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net earnings
    
    $
    2,193,600
    
    
    $
    2,282,000
    
    
    $
    10,522,500
    
    
    $
    2,279,500Other comprehensive income:Unrealized holding gains on
hedging contracts
    
    
    5,216,900
    
    
    
    2,912,200
    
    
    
    13,242,400
    
    
    
    2,912,200Less: reclassification
adjustment for gains realized
in net earnings
    
    
    (2,065,000
    )
    
    
    (701,100
    )
    
    
    (7,096,300
    )
    
    
    (701,100
    )Total other comprehensive income
    
    
    3,151,900
    
    
    
    2,211,100
    
    
    
    6,146,100
    
    
    
    2,211,100Comprehensive income
    
    $
    5,345,500
    
    
    $
    4,493,100
    
    
    $
    16,668,600
    
    
    $
    4,490,600
 Recently Adopted Accounting Standards
     10




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards (Continued)
  Recently Issued Accounting Standards
    11




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 3  OIL AND GAS PROPERTIES
  September 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    1,060,800
    
    
    $
    1,087,800Wells and related equipment
    
    
    128,187,000
    
    
    
    128,395,300129,247,800
    
    
    
    129,483,100Accumulated depletion
    
    
    (31,455,700
    )
    
    
    (23,075,300
    )$
    97,792,100
    
    
    $
    106,407,800
 NOTE 4  ASSET RETIREMENT OBLIGATIONS
    PeriodThree Months
    
    
    Three Months
    
    
    Nine Months
    
    
    April 16, 2009Ended
    
    
    Ended
    
    
    Ended
    
    
    ThroughSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of
period
    
    $
    444,000
    
    
    $
    249,000
    
    
    $
    431,100
    
    
    $
    Liabilities incurred from drilling wells
    
    
    
    
    
    
    177,200
    
    
    
    
    
    
    
    426,200Accretion expense
    
    
    6,500
    
    
    
    6,400
    
    
    
    19,400
    
    
    
    6,400Asset retirement obligation at end of period
    
    $
    450,500
    
    
    $
    432,600
    
    
    $
    450,500
    
    
    $
    432,600
  12




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS
     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
    
    $
    7,890,400
    
    
    $
    5,260,100
    
    
    Current liabilities
    
    $
    (15,700
    )
    
    $
    (64,100
    )Long-Term Assets
    
    
    8,423,700
    
    
    
    4,447,400
    
    
    Long-term liabilities
    
    
    (1,327,200
    )
    
    
    (685,000
    )Total Derivatives
    
    
    
    
    
    $
    16,314,100
    
    
    $
    9,707,500
    
    
    
    
    
    
    $
    (1,342,900
    )
    
    $
    (749,100
    )
  13




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Net 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 Net Earnings
    
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    
    2009Commodity Contracts
    
    $
    5,216,900
    
    
    $
    2,912,200
    
    
    Natural Gas and Oil Revenue
    
    $
    2,065,000
    
    
    $
    701,100
 Gain
    
    
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Net EarningsDerivatives in
    
    (Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Cash Flow
    
    Nine Months Ended
    
    
    Reclassified from Accumulated
    
    
    Nine Months EndedHedging
    
    September 30, 2010 and the Period
    
    
    OCI into Net Earnings
    
    
    September 30, 2010 and the PeriodRelationships
    
    April 16, 2009 through September 30, 2009
    
    
    (Effective Portion)
    
    
    April 16, 2009 through September 30, 2009Commodity Contracts
    
    $
    13,242,400
    
    
    $
    2,912,200
    
    
    Natural Gas and Oil Revenue
    
    $
    7,096,300
    
    
    $
    701,100
  Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    
    
    
    
    728,700
    
    
    $
    7.242
    
    
    $
    2,403,9002011
    
    
    
    
    
    
    1,919,700
    
    
    
    6.856
    
    
    
    4,636,5002012
    
    
    
    
    
    
    1,346,700
    
    
    
    7.172
    
    
    
    2,806,7002013
    
    
    
    
    
    
    784,500
    
    
    
    6.578
    
    
    
    984,6002014
    
    
    
    
    
    
    310,700
    
    
    
    5.897
    
    
    
    141,700$
    10,973,400
  14




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ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 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
    
    
    121,600
    
    
    $
    5.821
    
    
    $
    234,9002010
    
    Calls sold
    
    
    121,600
    
    
    
    7.041
    
    
    
    (100
    )2011
    
    Puts purchased
    
    
    918,800
    
    
    
    6.449
    
    
    
    1,944,3002011
    
    Calls sold
    
    
    918,800
    
    
    
    7.560
    
    
    
    (40,700
    )2012
    
    Puts purchased
    
    
    801,900
    
    
    
    6.025
    
    
    
    1,214,9002012
    
    Calls sold
    
    
    801,900
    
    
    
    7.194
    
    
    
    (264,700
    )2013
    
    Puts purchased
    
    
    935,900
    
    
    
    5.744
    
    
    
    1,388,2002013
    
    Calls sold
    
    
    935,900
    
    
    
    6.933
    
    
    
    (664,800
    )2014
    
    Puts purchased
    
    
    343,900
    
    
    
    5.621
    
    
    
    525,8002014
    
    Calls sold
    
    
    343,900
    
    
    
    6.732
    
    
    
    (349,100
    )$
    3,988,700
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    
    
    
    
    200
    
    
    $
    97.061
    
    
    $
    3,8002011
    
    
    
    
    
    
    700
    
    
    
    88.498
    
    
    
    2,7002012
    
    
    
    
    
    
    500
    
    
    
    88.093
    
    
    
    5002013
    
    
    
    
    
    
    200
    
    
    
    88.398
    
    
    
    1002014
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    7,100
  15




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##### Table of Contents



ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 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
    
    
    100
    
    
    $
    85.000
    
    
    $
    9002010
    
    Calls sold
    
    
    100
    
    
    
    112.220
    
    
    
    2011
    
    Puts purchased
    
    
    400
    
    
    
    77.563
    
    
    
    2,7002011
    
    Calls sold
    
    
    400
    
    
    
    101.861
    
    
    
    (1,900
    )2012
    
    Puts purchased
    
    
    300
    
    
    
    76.952
    
    
    
    3,0002012
    
    Calls sold
    
    
    300
    
    
    
    102.368
    
    
    
    (2,800
    )2013
    
    Puts purchased
    
    
    100
    
    
    
    76.952
    
    
    
    1,0002013
    
    Calls sold
    
    
    100
    
    
    
    103.269
    
    
    
    (900
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    2,000Total Net Asset
    
    $
    14,971,200
 
 (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. NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2 
 Level 3 
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
   16




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##### Table of Contents



ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 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 and nine months ended September 30, 2010
were $10,700 and $33,300, respectively. Administrative costs incurred for the three
months and period ended September 30, 2009 were $5,000 and $5,200, respectively.
 
    
    Monthly well supervision fees, which are included in production expenses in the
Partnerships statements of operations, are payable at $975 per well per month for
Marcellus wells and $1,500, for New Albany and Indiana Wells. For all other wells a fee
of $392 is charged per well per month for operating and maintaining the wells. Well
supervision fees incurred for the three and nine months ended September 30, 2010 were
$133,800 and $426,900, respectively. Supervision fees incurred for the three months and
period ended September 30, 2009 were $59,900 and $63,700, respectively.
 
    
    Transportation fees, which are included in production expenses in the Partnerships
statements of operations, for the three and nine months ended September 30, 2010 were
$811,900 and $3,193,700, respectively. Transportation fees incurred for the three months
and period ended September 30, 2009 were $677,500 and $679,300, respectively.
 
    
    Assets contributed from the MGP which are disclosed on the Partnerships statement of
cash flows as a non-cash activity for the nine months and period ended September 30,
2010 and 2009 were $305,000 and $7,763,900, respectively.
  Subordination by Managing General Partner
   17




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##### Table of Contents



ATLAS RESOURCES PUBLIC 18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 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.
 BUSINESS OVERVIEW
    18




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##### Table of Contents



Results of Operations
   PeriodThree Months
    
    
    Three Months
    
    
    Nine Months
    
    
    April 16, 2009Ended
    
    
    Ended
    
    
    Ended
    
    
    ThroughSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    6,298
    
    
    $
    5,711
    
    
    $
    25,447
    
    
    $
    5,725Oil
    
    
    167
    
    
    
    1
    
    
    
    478
    
    
    
    1Liquid
    
    
    98
    
    
    
    
    
    
    
    337
    
    
    
    Total
    
    $
    6,563
    
    
    $
    5,712
    
    
    $
    26,262
    
    
    $
    5,726Production volumes:Gas (mcf/day) (1)
    
    
    11,346
    
    
    
    10,736
    
    
    
    14,242
    
    
    
    8,694Oil (bbls/day) (1)
    
    
    33
    
    
    
    1
    
    
    
    33
    
    
    
    1Liquid (bbls/day) (1)
    
    
    23
    
    
    
    
    
    
    
    26
    
    
    
    Total (mcfe/day) (1)
    
    
    11,682
    
    
    
    10,742
    
    
    
    14,596
    
    
    
    8,700Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.07
    
    
    $
    5.78
    
    
    $
    6.58
    
    
    $
    5.78Oil (per bbl) (1) (4)
    
    $
    54.91
    
    
    $
    52.77
    
    
    $
    53.63
    
    
    $
    52.77Liquid (per bbl) (1)
    
    $
    45.88
    
    
    $
    20.75
    
    
    $
    47.92
    
    
    $
    20.75Average production costs:As a percent of revenues
    
    
    30
    %
    
    
    19
    %
    
    
    26
    %
    
    
    20
    %Per mcfe (1)
    
    $
    1.83
    
    
    $
    1.13
    
    
    $
    1.70
    
    
    $
    1.13Depletion per mcfe
    
    $
    2.25
    
    
    $
    2.31
    
    
    $
    2.26
    
    
    $
    2.31
 (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 income and dividing by the total volume for the period.
Previously recognized derivative gains were $41,700 and $133,000 for the three months
and nine months ended September 30, 2010. The derivative gains 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.
Previously recognized derivative gains were $100 and $300 for the three months and nine
months ended September 30, 2010. The derivative gains are included in other
comprehensive income and resulted from prior period impairment charges.  19




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##### Table of Contents



Natural Gas Revenues.
  Oil Revenues.
  Natural Gas Liquids Revenue
 Expenses.
   20




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##### Table of Contents



Liquidity and Capital Resources
     Subordination by Managing General Partner
   21




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##### Table of Contents



CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3 
   
 ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
   22




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##### Table of Contents



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 Public 18-2009 (B) L.P. (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Public 18-2009 (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 October 15, 2008 in the Form S-1A Registration Statement dated October 15, 2008, File No. 333-150925-02  23




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##### Table of Contents



SIGNATURES
  Atlas Resources Public 18-2009 (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  24