On Mar 4, 2014,
Atlas Resource Partners LP
), a master limited partnership, declared the pricing of
5,500,000 common units. The publicly offered units were priced at
$21.18 each. The partnership will offer the underwriters a window
of 30 days to buy up to 825,000 extra common units.
Atlas Resource is expected to receive $112.1 million from the
offering of the units. The partnership will likely utilize the
proceeds for financing the purchase of natural gas properties
from GeoMet Inc., an upstream operator. Before financing the
deal, Atlas Resource might allocate part of the proceeds toward
normal partnership activities.
Pittsburgh, Pennsylvania-located Atlas Resource is primarily
involved in the exploration and production of oil and natural
gas. The partnership executes upstream operations in the
U.S.-based basins. On Feb 27, 2014, the partnership reported weak
fourth-quarter 2013 results. Atlas Resource reported loss per
unit of 77 cents, wider than the year-ago loss of 53 cents. The
bottom line also came wider than the Zacks Consensus Estimate of
loss of 3 cents per unit. Significant increase of operating costs
hampered the results.
Currently, Atlas Resource Partners retains a Zacks Rank #3
(Hold), implying that it is expected to perform in line with the
broader U.S. equity market over the next 1 to 3 months.
Meanwhile, one can look at better-ranked players in the oil
exploration and production sector like
Range Resources Corp.
Warren Resources Inc.
Abraxas Petroleum Corp.
). Range Resources and Warren Resources sport a Zacks Rank #1
(Strong Buy) while Abraxas Petroleum carries a Zacks Rank #2
ATLAS RES PTNRS (ARP): Free Stock Analysis
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
WARREN RSRCS (WRES): Free Stock Analysis
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