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Capital One SouthCoast Initiates Coverage on Atlas America (ATLS) with an Add; Positive on Merger

June 24, 2009 8:36 AM EDT
ATLS Hot Sheet
Rating Summary:
    0 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Capital One SouthCoast initiates coverage on Atlas America (Nasdaq: ATLS) with an Add. Price target $24.

Capital One analyst says, "ATLS is merging with its subsidiary ATN, an MLP, in 2H09, which should increase its investor base and growth profile. At current prices, ATLS is trading at one of the biggest discounts to our estimated NAV in our E&P universe. ATLS's drilling is primarily in the Marcellus Shale, where it has drilled over 100 vertical wells, de-risking its acreage position in SW Pennsylvania. It is at the very beginning of its horizontal program with 3 wells announced to date. If successful, its horizontal drilling program could increase our NAV to over $30 per share based on long-term gas prices of $6.50/Mcf."

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.

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