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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, 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 333-150925-01
 ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    27-0213766
(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
 Yes o No þ
  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 (C) 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, 2010 and December 31, 2009
    
    
    3Statement of Operations for the Three Months ended March 31, 2010
    
    
    4Statement of Changes in Partners Capital for the Three Months ended March 31, 2010
    
    
    5Statement of Cash Flows for the Three Months ended March 31, 2010
    
    
    6Notes to Financial Statements
    
    
    7-15Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    15-17Item 4: Controls and Procedures
    
    
    18PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    18Item 6: Exhibits
    
    
    18SIGNATURES
    
    
    19CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 BALANCE SHEETS
 March 31,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    936,900
    
    
    $
    26,313,800Accounts receivable  affiliate
    
    
    4,460,800
    
    
    
    1,219,300Short-term hedge receivable due from affiliate
    
    
    5,961,600
    
    
    
    3,639,400Total current assets
    
    
    11,359,300
    
    
    
    31,172,500Oil and gas properties, net
    
    
    192,783,200
    
    
    
    70,652,900Construction in progress
    
    
    49,360,700
    
    
    
    122,532,400Long-term hedge receivable due from affiliate
    
    
    6,022,200
    
    
    
    3,340,600$
    259,525,400
    
    
    $
    227,698,400LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    188,900
    
    
    $
    24,900Short-term hedge liability due to affiliate
    
    
    33,500
    
    
    
    45,300Total current liabilities
    
    
    222,400
    
    
    
    70,200Asset retirement obligation
    
    
    1,254,600
    
    
    
    1,152,700Long-term hedge liability due to affiliate
    
    
    1,261,500
    
    
    
    548,700Partners capital:Managing general partner
    
    
    16,303,600
    
    
    
    10,510,800Investor subscriptions receivable
    
    
    
    
    
    
    (20,187,700
    )Investors partners (22,928.90 units)
    
    
    229,794,500
    
    
    
    229,217,700Accumulated other comprehensive income
    
    
    10,688,800
    
    
    
    6,386,000Total partners capital
    
    
    256,786,900
    
    
    
    225,926,800$
    259,525,400
    
    
    $
    227,698,400
   3




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 STATEMENT OF OPERATIONS
 (Unaudited)
 Three MonthsEndedMarch 31, 2010REVENUESNatural gas and oil
    
    $
    5,581,900Total revenues
    
    
    5,581,900COSTS AND EXPENSESProduction
    
    
    1,542,700Depletion
    
    
    2,735,100Accretion of asset retirement obligation
    
    
    18,500General and administrative
    
    
    24,700Total expenses
    
    
    4,321,000Net earnings
    
    $
    1,260,900Allocation of net earnings:Managing general partner
    
    $
    732,400Investor partners
    
    $
    528,500Net earnings
per investor partnership unit
    
    $
    23
   4




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE THREE MONTHS ENDED
 March 31, 2010
(Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    Investor
    
    
    OtherGeneral
    
    
    Investor
    
    
    Subscription
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Receivable
    
    
    Income
    
    
    TotalBalance at January 1, 2010
    
    $
    10,510,800
    
    
    $
    229,217,700
    
    
    $
    (20,187,700
    )
    
    $
    6,386,000
    
    
    $
    225,926,800Participation in revenues and expenses:Net production revenues
    
    
    1,050,200
    
    
    
    2,989,000
    
    
    
    
    
    
    
    
    
    
    
    4,039,200Depletion
    
    
    (306,600
    )
    
    
    (2,428,500
    )
    
    
    
    
    
    
    
    
    
    
    (2,735,100
    )General and administrative
    
    
    (6,400
    )
    
    
    (18,300
    )
    
    
    
    
    
    
    
    
    
    
    (24,700
    )Accretion of asset retirement obligation
    
    
    (4,800
    )
    
    
    (13,700
    )
    
    
    
    
    
    
    
    
    
    
    (18,500
    )Net earnings
    
    
    732,400
    
    
    
    528,500
    
    
    
    
    
    
    
    
    
    
    
    1,260,900Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,302,800
    
    
    
    4,302,800Asset contributions
    
    
    5,108,800
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,108,800Working interest adjustment
    
    
    (48,300
    )
    
    
    48,300
    
    
    
    
    
    
    
    
    
    
    
    Initial capital contribution returned
    
    
    (100
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (100
    )Subscription received
    
    
    
    
    
    
    
    
    
    
    20,187,700
    
    
    
    
    
    
    
    20,187,700Balance at March 31, 2010
    
    $
    16,303,600
    
    
    $
    229,794,500
    
    
    $
    
    
    
    $
    10,688,800
    
    
    $
    256,786,900
   5




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 STATEMENT OF CASH FLOWS
 (Unaudited)
 Three MonthsEndedMarch 31, 2010Cash flows from operating activities:Net earnings
    
    $
    1,260,900Adjustments to reconcile net earnings to net cash provided by operating activities:Depletion
    
    
    2,735,100Accretion of asset retirement obligation
    
    
    18,500Increase in accounts receivable-affiliate
    
    
    (3,241,500
    )Increase in accrued liabilities
    
    
    164,000Net cash provided by operating activities
    
    
    937,000Cash flows from investing activities:Oil and gas well drilling contract paid to MGP
    
    
    (46,501,500
    )Net cash used in financing activities
    
    
    (46,501,500
    )Cash flows from financing activities:Initial capital contribution by MGP
    
    
    (100
    )Partners capital contribution
    
    
    20,187,700Net cash provided by financing activities
    
    
    20,187,600Net decrease in cash and cash equivalents
    
    
    (25,376,900
    )Cash and cash equivalents at beginning of period
    
    
    26,313,800Cash and cash equivalents at end of period
    
    $
    936,900Supplemental Schedule of non-cash investing and financing activities:Assets contributed by managing general partner:Lease costs
    
    
    334,000Tangible drilling costs
    
    
    4,774,800$
    5,108,800Asset retirement obligation
    
    $
    83,400
   6




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 NOTES TO FINANCIAL STATEMENTS
 March 31, 2010
 (Unaudited)
 NOTE 1  DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
    NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates
    7




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Accounts Receivable and Allowance for Possible Losses
  Revenue Recognition
   Impairment of Long-Lived Assets
    8




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Impairment of Long-Lived Assets (Continued)
  Working Interest
  Oil and Gas Properties
  March 31,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    2,582,000
    
    
    $
    2,248,000Wells and related equipment
    
    
    193,648,200
    
    
    
    69,116,800196,230,200
    
    
    
    71,364,800Accumulated depletion
    
    
    (3,447,000
    )
    
    
    (711,900
    )$
    192,783,200
    
    
    $
    70,652,900
  9




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Oil and Gas Properties (Continued)
    Recently Adopted Accounting Standards
  NOTE 3  TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES
  
    
    Drilling contracts to drill and complete wells for the Partnership are charged at
cost plus 18%. The cost of the wells includes reimbursement to the Partnerships MGP of
its general and administrative overhead cost. The Partnership paid $46,501,500 to its
MGP for the three months ended March 31, 2010.
 
    
    The Partnerships MGP contributed undeveloped leases necessary to cover each of the
Partnerships prospects and at March 31, 2010 received a credit to its capital account
in the Partnership of $334,000.
 
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships Statement of Operations are payable at $975 per well, per month for
Marcellus wells, $1,500 per well, per month for New Albany and Indiana wells and $600
per well, per month for horizontal Antrim Shale 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 were $132,200 for the three months ended March 31, 2010.
  10




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 3  TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES (Continued)
 
    
    Administrative costs which are included in general and administrative expenses in the
Partnerships Statement of Operations are payable at $75 per well per month.
Administrative costs incurred for the three months ended March 31, 2010 were $11,500.
 
    
    Transportation fees which are included in production expenses in the Partnerships
Statement of Operations are generally payable at 13% of the natural gas sales price.
Transportation fees incurred for the three months ended March 31, 2010 were $631,900.
 
    
    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, 2010 were
$5,108,800.
  Subordination by Managing General Partner
  NOTE 4  COMPREHENSIVE INCOME
  Three MonthsEndedMarch 31, 2010Net earnings
    
    $
    1,260,900Other comprehensive income:Unrealized holding gain on hedging contracts
    
    
    4,672,700Less: reclassification adjustment for gains realized in net earnings
    
    
    (369,900
    )Total other comprehensive income
    
    
    4,302,800Comprehensive income
    
    $
    5,563,700
  11




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS
   Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    Liability DerivativesDerivatives in
    
    
    
    
    
    Fair Value
    
    
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    
    March 31,
    
    
    December 31,
    
    
    Balance Sheet
    
    
    March 31,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity contracts:
    
    Current assets
    
    $
    5,961,600
    
    
    $
    3,639,400
    
    
    Current liabilities
    
    $
    (33,500
    )
    
    $
    (45,300
    )Long-term assets
    
    
    6,022,200
    
    
    
    3,340,600
    
    
    Long-term liabilities
    
    
    (1,261,500
    )
    
    
    (548,700
    )Total derivatives
    
    
    
    
    
    $
    11,983,800
    
    
    $
    6,980,000
    
    
    
    
    
    
    $
    (1,295,000
    )
    
    $
    (594,000
    )
 Gain
    
    
    
    
    
    
    GainRecognized in OCI
    
    
    
    
    
    
    Reclassified from OCI intoon Derivative
    
    
    Location of Gain
    
    
    Income(Effective Portion)
    
    
    Reclassified from
    
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Accumulated
    
    
    Three Months EndedCash Flow
    
    March 31,
    
    
    OCI into Income
    
    
    March 31,Hedging Relationships
    
    2010
    
    
    (Effective Portion)
    
    
    2010Commodity contracts:
    
    $
    4,672,700
    
    
    Natural gas and oil revenue
    
    
    $
    369,900
  12




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
    Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    1,541,200
    
    
    $
    7.35
    
    
    $
    4,728,3002011
    
    
    1,124,800
    
    
    
    6.69
    
    
    
    2,008,5002012
    
    
    984,600
    
    
    
    6.85
    
    
    
    1,417,2002013
    
    
    687,700
    
    
    
    6.82
    
    
    
    541,600$
    8,695,600
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    Puts purchased
    
    
    114,200
    
    
    $
    7.84
    
    
    $
    448,6002010
    
    Calls sold
    
    
    114,200
    
    
    
    9.01
    
    
    
    2011
    
    Puts purchased
    
    
    654,300
    
    
    
    6.20
    
    
    
    916,8002011
    
    Calls sold
    
    
    654,300
    
    
    
    7.28
    
    
    
    2012
    
    Puts purchased
    
    
    383,200
    
    
    
    6.22
    
    
    
    358,0002012
    
    Calls sold
    
    
    383,200
    
    
    
    7.31
    
    
    
    2013
    
    Puts purchased
    
    
    449,000
    
    
    
    6.23
    
    
    
    269,8002013
    
    Calls sold
    
    
    449,000
    
    
    
    7.39
    
    
    
    $
    1,993,200Total Net Asset
    
    
    $
    10,688,800
 
 (1)
    
    MMBTU represents million British Thermal Units.(2)
    
    Fair value based on forward NYMEX natural gas prices.(3)
    
    Fair value based on forward WTI crude oil prices.  13




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2
 Level 3
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  March 31, 2010
    
    
    December 31, 2009Level 2
    
    
    Total
    
    
    Level 2
    
    
    TotalCommodity-based derivatives
    
    $
    10,688,800
    
    
    $
    10,688,800
    
    
    $
    6,386,000
    
    
    $
    6,386,000Total
    
    $
    10,688,800
    
    
    $
    10,688,800
    
    
    $
    6,386,000
    
    
    $
    6,386,000
 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
   14




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Continued)
  NOTE 7  ASSET RETIREMENT OBLIGATION
    Three MonthsEndedMarch 31, 2010Asset retirement obligation at beginning of period
    
    $
    1,152,700Liabilities incurred from drilling wells
    
    
    83,400Accretion expense
    
    
    18,500Asset retirement obligation at end of period
    
    $
    1,254,600
 
 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.
   15




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General
    Results of Operations
   Three MonthsEndedMarch 31, 2010Production revenues (in thousands):Gas
    
    $
    5,582Oil
    
    
    Total
    
    $
    5,582Production volumes:Gas (mcf/day) (1)
    
    
    9,659Oil (bbls/day) (1)
    
    
    Total (mcfe/day) (1)
    
    
    9,659Average sales prices:Gas (per mcf) (1)
    
    $
    6.42Oil (per bbl) (1)
    
    $
    Average production costs:As a percent of revenues
    
    
    28
    %Per mcfe (1)
    
    $
    1.77Depletion per mcfe
    
    $
    3.15
 
 (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)
    
    The average sales price is calculated by including total revenue and dividing by
the total volume for the period.  16




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Natural Gas Revenues
 Expenses.
   Liquidity and Capital Resources
      Critical Accounting Policies
  Subordination by Managing General Partner
   17




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ITEM 4.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
    
 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 (C) L.P. (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Public 18-2009 (C) 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. 333-150925-01  18




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SIGNATURES
   Atlas Resources, LLC, Managing General PartnerDate:  May 21, 2010
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the Board of Directors,Chief Executive Officer and President  Date: May 21, 2010
    
    By:
    
    /s/ Freddie M. Kotek

Freddie M. Kotek, Chairman of the Board of Directors,Chief Executive Officer and PresidentDate: May 21, 2010
    
    By:
    
    /s/ Matthew A. Jones

Matthew A. Jones, Chief Financial OfficerDate: May 21, 2010
    
    By:
    
    /s/ Sean P. McGrath

Sean P. McGrath, Chief Accounting Officer
  19