On Mar 7, 2014,
Atlas Resource Partners LP
), a master limited partnership, declared the closure of the
earlier announced common units offering. The partnership priced
the 6,325,000 common units at $21.18 a piece. Moreover, the
over-allotment option of the underwriters for purchasing 825,000
extra common units was fully exercised.
The partnership will likely utilize the proceeds - roughly $129.0
million − for financing the purchase of natural gas properties
from GeoMet Inc., an upstream operator. Atlas Resource might also
allocate part or whole of the funds toward normal partnership
Pittsburgh, Pennsylvania-located Atlas Resource is primarily
involved in the exploration and production of liquid and natural
gas. The partnership executes upstream operations in U.S.-based
basins. The operating segments of Atlas Resource are Gas and oil
production, Well construction and completion and Gathering and
processing. 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
reported figure was also wider than the Zacks Consensus Estimate
of a loss of 3 cents per unit. Substantially higher operating
expenses 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 industry like
Range Resources Corporation
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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