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FBR Capital Downgrades Atlas Resource Partners, L.P. (ARP) to Market Perform

November 24, 2015 6:55 AM EST
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Price: $26.50 +0.57%

Rating Summary:
    1 Buy, 7 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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FBR Capital downgraded Atlas Resource Partners, L.P. (NYSE: ARP) from Outperform to Market Perform with a price target of $1.50 (from $7.00).

Analyst Chad Mabry commented, "Yesterday before the open, Atlas Resource Partners announced that it is slashing its distribution by 88% to an annualized $0.15/unit. While we had been forecasting a reduction in the payout, needless to say the move was much more aggressive than we had expected (refer to our earnings note for additional details: "Leverage Warrants Monitoring"). The decision was announced in conjunction with results of the partnership’s fall borrowing base redetermination as the lending group is clearly concerned with ARP’s leverage profile. The new distribution brings the partnership’s yield to 10% and causes our price target to fall to $1.50 (from $7). As a result, we are downgrading ARP to Market Perform (from Outperform)."

For an analyst ratings summary and ratings history on Atlas Resource Partners, L.P. click here. For more ratings news on Atlas Resource Partners, L.P. click here.

Shares of Atlas Resource Partners, L.P. closed at $1.51 yesterday.



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