Atlas Energy Resources – News and Press Releases.

The press release above announces the merger of Atlas Energy Resources (ATN: 0.00 N/A N/A) into Atlas America Inc (ATLS: 25.35 +0.41 +1.64%). The new company will be known as Atlas Energy. This merger raises some interesting possibilities and questions. The questions are more of a organizational nature:

  • Will the merged company be listed on the NASDAQ or NYSE?
  • What happens to the LLC structure and distribution policy of ATN?

The press release states that ATN shareholders will get 1.16 shares of the new Atlas Energy for each share owned. Also, that ATN distributions will be suspended until the merger goes through. ATN historically has paid a distribution right about now so I guess we can kiss that one goodbye.

Overall, I think this is a good move for ATN shareholders. ATLS is the owner of the ATN general partner and the GP in these types of businesses siphon off a significant chunk of cash flow of MLP type businesses. ATLS also owns significant stakes in Atlas Pipeline Holdings (AHD: 0.00 N/A N/A) and Atlas Pipeline Partners (APL: 36.23 -0.71 -1.92%). I think these holdings are currently very undervalued by the market now ATN shareholders will have exposure to the hopefully realization of those values.

The managements of the various Atlas companies have been saying they want to find ways to realize share holder value. This merger seems to me to be a very good step.

Note: I own a personal position in ATN.

More on this topic (What's this?)
Following the Money (Prudent Speculations, 1/13/09)
Cramer Greatly Underestimates Atlas Energy Resources (Prudent Speculations, 8/21/08)
NYSE Top Gainers of the Day: (DDS, APL, ATLS) (Penny Stock DD, 5/16/11)
Read more on Atlas Energy Resources, Atlas America at Wikinvest