Atlas Resource Partners, L.P. (ARP) is Not Your Typical Upstream MLP - Wells Fargo
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Price: $33.94 +0.21%
Rating Summary:
1 Buy, 7 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 7 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on Atlas Resource Partners, L.P. (NYSE: ARP) with a Market Perform. PT $26.00.
ARP sponsors and manages tax advantaged investment partnerships in which it coinvests, financing the exploitation and development of its acreage.
According to today’s report from Wells Fargo, key factors that differentiate ARP’s business model from that of other upstream MLPs include: (1) access to an alternative source of financing outside of the capital markets, (2) a higher level of drilling activity around prospective liquids plays, and (3) a more volatile cash flow stream due to variability in the amount, timing and deployment of partnership drilling funds raised.
“ARP is poised to significantly grow its distribution over the next two years supported by accretion from $400MM of recently completed acquisitions and our expectation for continued M&A activity over the balance of the year,” said Praneeth Satish.
“We forecast ARP could pay out a distribution of $2.32 per unit in 2013 (compares to guidance of $2.30-2.45 per unit), which represents a 45% increase over the current annualized distribution,” he added.
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 $26.90 yesterday.
ARP sponsors and manages tax advantaged investment partnerships in which it coinvests, financing the exploitation and development of its acreage.
According to today’s report from Wells Fargo, key factors that differentiate ARP’s business model from that of other upstream MLPs include: (1) access to an alternative source of financing outside of the capital markets, (2) a higher level of drilling activity around prospective liquids plays, and (3) a more volatile cash flow stream due to variability in the amount, timing and deployment of partnership drilling funds raised.
“ARP is poised to significantly grow its distribution over the next two years supported by accretion from $400MM of recently completed acquisitions and our expectation for continued M&A activity over the balance of the year,” said Praneeth Satish.
“We forecast ARP could pay out a distribution of $2.32 per unit in 2013 (compares to guidance of $2.30-2.45 per unit), which represents a 45% increase over the current annualized distribution,” he added.
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 $26.90 yesterday.
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