On Mar 4, 2014, Atlas Resource Partners LP (ARP), 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. (RRC), Warren Resources Inc. (WRES) and Abraxas Petroleum Corp. (AXAS). Range Resources and Warren Resources sport a Zacks Rank #1 (Strong Buy) while Abraxas Petroleum carries a Zacks Rank #2 (Buy).