Wunderlich Securities Sees 4Q Miss Due to Operational Issues and Weak Realizations for Atlas Resource Partners, L.P.

In a report published Tuesday, Wunderlich Securities analyst Abhishek Sinha reiterated a Hold rating and $11.50 price target on Atlas Resource Partners, L.P. ARP. In the report, Wunderlich Securities noted, "Atlas Resource Partners (ARP) reported 4Q14 EBITDA of $87mm and DCF of $47mm, lagging our and consensus estimates. The company recently cut its distributions by 45% to shore up its capital and regain its coverage strength in light of the flagging commodity market. ARP expects 7% production growth in 2015 with a revised down capex guidance of $172mm (from $200mm). The company was able to raise $167mm from its private partnership business in 2014 (vs. $225 guidance) and now expects to raise $150mm in 2015, which is also revised down from an earlier estimated $275mm. ARP has yet to prove its operational and financial rigor, and its shares should continue to trade at a discount to peers until its financial metrics improve. Our rating remains Hold." Atlas Resource Partners, L.P. closed on Monday at $9.82.