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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 333-150925-02
 ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
  Delaware
    
    26-3223040(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
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
 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 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 and Results of Operations
    
    
    15-18Item 4: Controls and Procedures
    
    
    18PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    19Item 6: Exhibits
    
    
    19SIGNATURES
    
    
    20CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
 
 BALANCE SHEETS
 March 31,
    
    
    December 31,2011
    
    
    2010(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    1,713,300
    
    
    $
    1,600,000Accounts receivable  affiliate
    
    
    7,787,900
    
    
    
    5,208,000Short-term hedge receivable due from affiliate
    
    
    
    
    
    
    3,820,500Total current assets
    
    
    9,501,200
    
    
    
    10,628,500Oil and gas properties, net
    
    
    93,634,700
    
    
    
    95,802,000Long-term hedge receivable due from affiliate
    
    
    
    
    
    
    3,778,700Long-term receivable due from affiliate
    
    
    2,763,200
    
    
    
    $
    105,899,100
    
    
    $
    110,209,200LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    323,600
    
    
    $
    429,300Short-term hedge liability due to affiliate
    
    
    
    
    
    
    28,100Total current liabilities
    
    
    323,600
    
    
    
    457,400Asset retirement obligation
    
    
    688,600
    
    
    
    678,400Long-term hedge liability due to affiliate
    
    
    
    
    
    
    643,600Partners capital:Managing general partner
    
    
    10,303,700
    
    
    
    10,150,100Limited partners (12,278 units)
    
    
    89,011,600
    
    
    
    91,558,200Accumulated other comprehensive income
    
    
    5,571,600
    
    
    
    6,721,500Total partners capital
    
    
    104,886,900
    
    
    
    108,429,800$
    105,899,100
    
    
    $
    110,209,200
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010REVENUESNatural gas, oil and liquid gas
    
    $
    5,594,000
    
    
    $
    11,166,300Interest income
    
    
    300
    
    
    
    2,000Total revenues
    
    
    5,594,300
    
    
    
    11,168,300COSTS AND EXPENSESProduction
    
    
    1,154,300
    
    
    
    2,677,400Depletion
    
    
    2,756,900
    
    
    
    3,918,800Accretion of asset retirement obligation
    
    
    10,200
    
    
    
    6,500General and administrative
    
    
    35,100
    
    
    
    35,000Total costs and expenses
    
    
    3,956,500
    
    
    
    6,637,700Net income
    
    $
    1,637,800
    
    
    $
    4,530,600Allocation of net income:Managing general partner
    
    $
    988,400
    
    
    $
    2,215,600Limited partners
    
    $
    649,400
    
    
    $
    2,315,000Net income per limited partnership unit
    
    $
    53
    
    
    $
    189
   4




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##### Table of Contents



ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE THREE MONTHS ENDED
 March 31, 2011
 (Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income (Loss)
    
    
    TotalBalance at January 1, 2011
    
    $
    10,150,100
    
    
    $
    91,558,200
    
    
    $
    6,721,500
    
    
    $
    108,429,800Participation in revenues and expenses:Net production revenues
    
    
    1,234,000
    
    
    
    3,205,700
    
    
    
    
    
    
    
    4,439,700Interest income
    
    
    100
    
    
    
    200
    
    
    
    
    
    
    
    300Depletion
    
    
    (232,100
    )
    
    
    (2,524,800
    )
    
    
    
    
    
    
    (2,756,900
    )Accretion of asset retirement obligation
    
    
    (3,100
    )
    
    
    (7,100
    )
    
    
    
    
    
    
    (10,200
    )General and administrative
    
    
    (10,500
    )
    
    
    (24,600
    )
    
    
    
    
    
    
    (35,100
    )Net income
    
    
    988,400
    
    
    
    649,400
    
    
    
    
    
    
    
    1,637,800Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    (1,149,900
    )
    
    
    (1,149,900
    )Assets contributed
    
    
    589,600
    
    
    
    
    
    
    
    
    
    
    
    589,600Distributions to partners
    
    
    (1,424,400
    )
    
    
    (3,196,000
    )
    
    
    
    
    
    
    (4,620,400
    )Balance at March 31, 2011
    
    $
    10,303,700
    
    
    $
    89,011,600
    
    
    $
    5,571,600
    
    
    $
    104,886,900
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010Cash flows from operating activities:Net income
    
    $
    1,637,800
    
    
    $
    4,530,600Adjustments to reconcile net income to net cash provided by
operating activities:Depletion
    
    
    2,756,900
    
    
    
    3,918,800Non cash loss on derivative value
    
    
    23,900
    
    
    
    44,700Accretion of asset retirement obligation
    
    
    10,200
    
    
    
    6,500Decrease (increase) in accounts receivable-affiliate
    
    
    356,000
    
    
    
    (3,998,300
    )(Decrease) increase in accrued liabilities
    
    
    (105,700
    )
    
    
    131,300Net cash provided by operating activities
    
    
    4,679,100
    
    
    
    4,633,600Cash flows from financing activities:Distributions to partners
    
    
    (4,565,800
    )
    
    
    (9,074,900
    )Net cash used in financing activities
    
    
    (4,565,800
    )
    
    
    (9,074,900
    )Net increase (decrease) in cash and cash equivalents
    
    
    113,300
    
    
    
    (4,441,300
    )Cash and cash equivalents at beginning of period
    
    
    1,600,000
    
    
    
    4,442,800Cash and cash equivalents at end of period
    
    $
    1,713,300
    
    
    $
    1,500Supplemental Schedule of non-cash investing and financing activities:Assets contributed by (returned to) managing general partner:Lease costs
    
    $
    
    
    
    $
    (51,000
    )Tangible drilling costs
    
    
    55,300
    
    
    
    (84,200
    )Intangible drilling costs
    
    
    534,300
    
    
    
    Syndication and offering costs
    
    
    
    
    
    
    33,400$
    589,600
    
    
    $
    (101,800
    )Distribution to managing general partner
    
    $
    54,600
    
    
    $
    
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
 
 NOTES TO FINANCIAL STATEMENTS
 March 31, 2011
 (Unaudited)
 NOTE 1  DESCRIPTION OF BUSINESS
    NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Use of Estimates
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
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
    
    $
    1,055,800
    
    
    $
    1,060,800Wells and related equipment
    
    
    130,873,700
    
    
    
    130,319,700131,929,500
    
    
    
    131,380,500Accumulated depletion
    
    
    (38,294,800
    )
    
    
    (35,578,500
    )$
    93,634,700
    
    
    $
    95,802,000
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
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 RESOURCES PUBLIC #18-2009 (B) L.P.
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
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 3  ASSET RETIREMENT OBLIGATION (Continued)
  Three Months EndedMarch 31,2011
    
    
    2010Asset retirement obligation at beginning of period
    
    $
    678,400
    
    
    $
    431,100Accretion expense
    
    
    10,200
    
    
    
    6,500Asset retirement obligation at end of period
    
    $
    688,600
    
    
    $
    437,600
 NOTE 4  COMPREHENSIVE INCOME
  Three Months EndedMarch 31,2011
    
    
    2010Net income
    
    $
    1,637,800
    
    
    $
    4,530,600Other comprehensive (loss) income:Net unrealized gain
    
    
    766,300
    
    
    
    8,513,900Less: reclassification adjustment for gains realized in net income
    
    
    (1,916,200
    )
    
    
    (2,559,300
    )Total other comprehensive (loss) income
    
    
    (1,149,900
    )
    
    
    5,954,600Comprehensive income
    
    $
    487,900
    
    
    $
    10,485,200
 NOTE 5  DERIVATIVE INSTRUMENTS
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
     12




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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
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
    
    $
    3,820,500Long-Term Assets
    
    
    3,778,7007,599,200Current liabilities
    
    
    (28,100
    )Long-term liabilities
    
    
    (643,600
    )(671,700
    )Total
    
    $
    6,927,500
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    Location of Gain
    
    
    GainRecognized in OCI on Derivative
    
    
    Reclassified from Accumulated
    
    
    Reclassified from OCI into Net IncomeDerivatives in
    
    Three Months Ended
    
    
    OCI into Income
    
    
    Three Months EndedCash Flow
    
    March 31,
    
    
    March 31,
    
    
    
    

    
    
    March 31,
    
    
    March 31,Hedging Relationship
    
    2011
    
    
    2010
    
    
    
    

    
    
    2011
    
    
    2010Commodity
contracts
    
    $
    766,300
    
    
    $
    8,513,900
    
    
    Natural gas and oil revenue
    
    $
    1,916,200
    
    
    $
    2,559,300
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2
 Level 3
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
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ATLAS RESOURCES PUBLIC #18-2009 (B) L.P.
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 the three months ended March 31, 2011 and 2010 were
$11,400 and $10,700, 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 the
Marcellus wells and $1,500 per well per month for New Albany 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 months ended March 31, 2011 and 2010 were
$145,100 and $144,000, respectively.
    
    Transportation fees, which are included in production expenses in the Partnerships
statements of operations, incurred for the three months ended March 31, 2011 and 2010
were $660,000 and $1,404,700, respectively.
    
    Assets contributed from the MGP which are disclosed on the Partnerships statement of
cash flows as a non-cash activity for the three months ended March 31, 2011 were
$589,600. Assets returned to the MGP which are disclosed on the Partnerships statement
of cash flows as a non-cash activity for the three months ended March 31, 2010 were
$135,200.
  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 312011
    
    
    2010Production revenues (in thousands):Gas
    
    $
    5,260
    
    
    $
    10,886Oil
    
    
    177
    
    
    
    170Liquid
    
    
    157
    
    
    
    110Total
    
    $
    5,594
    
    
    $
    11,166Production volumes:Gas (mcf/day) (1)
    
    
    9,720
    
    
    
    18,730Oil (bbls/day) (1)
    
    
    28
    
    
    
    37Liquid (bbl/day) (1)
    
    
    30
    
    
    
    25Total (mcfe/day) (1)
    
    
    10,068
    
    
    
    19,102Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.04
    
    
    $
    6.48Oil (per bbl) (1) (4)
    
    $
    71.05
    
    
    $
    50.66Liquid (per bbl) (1)
    
    $
    57.53
    
    
    $
    48.76Average production costs:As a percent of revenues
    
    
    21
    %
    
    
    24
    %Per mcfe (1)
    
    $
    1.27
    
    
    $
    1.57Depletion per mcfe
    
    $
    3.04
    
    
    $
    2.30
 
 (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. Liquid gallons are converted into bbls by a ratio of 42 gallons
per 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 $23,900 and $44,600 for the three months
ended March 31, 2011 and 2010, respectively. 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 gain was $100 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.
  16




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Oil Revenues.
 Natural Gas Liquids Revenue .
 Costs and Expenses.
   Liquidity and Capital Resources
      17




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Critical Accounting Policies
  Subordination by Managing General Partner
  
 ITEM 4.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
   18




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