Atlas Pipeline Partners (APL) last week announced a $600mm acquisition of Cardinal Midstream, and the stock promptly gave up a surprising $250mm in market cap. That is despite the fact that the deal is expected to actually be accretive on a Cash Flow per Share basis by 3-5% next year, and 8-10% in 2014. After announcing the acquisition and an equity offering to pay for it, Atlas priced a stock deal of 11mm units at $31.00, well below prices near $36 just a few weeks ago, and down 21% from the highs in early 2012.
On the whole, fears of equity dilution, overpaying for Cardinal, and MLP tax treatment worries have driven Atlas to unwarranted levels....