Philadelphia-based natural gas producer Atlas America, Inc. reported that first-quarter revenues were its highest ever, but that profits fell due to a subsidiary's acquisition of new assets last year.

The Philadephia-based natural gas producer posted revenues of $486.7 million, compared with $214.9 million last year, and profits of $6.4 million, versus $10.2 million a year ago.

The company said that the drop in profits was caused by continuing expenses from the $1.85 billion purchase by Atlas Pipeline Partners, L.P. of natural gas gathering and processing systems in from Anandarko Petroleum, based in The Woodlands, Texas.

Atlas is the primary unit holder in Atlas Energy Resources LLC in Moon. The local subsidiary showed net income of $37.5 million on revenues of $194.6 million, compared with $19.9 million on $105.2 in revenues last year.

Atlas America has historically owned 48 percent of the common units in Atlas Energy Resources. Earlier this week, Atlas America bought an additional 600,000 units, at the market price of $42.

Also under the Atlas banner is Atlas Pipeline Holdings L.P., a limited partnership in which Atlas America has a 64 percent limited-partner interest. The partnership reported a net loss of $2.8 million, compared with net income of $2.7 million a year ago. The company said the drop was due primarily to noncash losses on derivatives totaling $76.9 million. Total revenues for the quarter were $303.4 million, vs. $117.5 million a year ago.

Atlas Pipeline Holdings has declared a quarterly dividend of 43 cents per common unit, payable on May 20.

Atlas Pipeline Partners L.P., reported a net loss of $45.8 million for the first quarter, on revenues of $303.4 million, compared with a $2.5 million gain on revenues of $117.5 million a year ago.

In trading yesterday, Atlas America shares rose $3.15 to close at $74.20. Atlas Energy Resources rose 72 cents to $43.05; Atlas Pipeline Holdings fell 6 cents to $29.79; and Atlas Pipeline Partners rose 50 cents to $42.90.