KeyBanc Initiates Coverage on Atlas America (ATLS) with a Buy; Stable Asset Base with Significant Marcellus Upside

September 14, 2009 9:20 AM EDT

KeyBanc initiates coverage on Atlas America Inc. (NASDAQ: ATLS) with a Buy. Price target $31.

KeyBanc analyst says, "We are initiating coverage of ATLS with a BUY, based on an attractive valuation on all relevant metrics, and our belief that several catalysts lie ahead of the Company to grow production and proved reserves at low F&D costs. With the closing of the merger (expected late September or early October) with its E&P subsidiary Atlas Energy Resources, LLC (NYSE: ATN), we believe the Company will be able to accelerate development of its core Marcellus shale position through horizontal drilling, significantly growing production and proved reserves going forward. For 2010, based on ATLS's drilling plans in the Marcellus shale and guidance, we believe production growth could be north of 29%...We believe ATLS will be able to significantly grow proved reserves organically going forward and expect production replacement north of 400% at sub-$1.50 finding and development (F&D) costs via the drillbit across all its activities. With the corporate structure in the process of being simplified with the closing of the merger with ATN, we expect increased interest in the name going forward."

To see more analyst ratings on ATLS Click Here.

Atlas America, Inc., through its subsidiary, Atlas Energy Resources, LLC, operates as an independent developer and producer of natural gas and oil.

Related Categories

New Coverage

Stocks Mentioned

Related Entities

• KeyBanc

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?