Atlas America Reports Another Great Quarter

Last week Atlas America (ATLS) reported results for the first quarter of 2008 that shows the continued success of the Atlas America story. The company has long been a favorite of mine and a more detailed opinion of it can be found here. For the most recent quarter, the company reported adjusted earnings per share of 46 cents driven by its 48% ownership interest in Atlas Energy Resource (ATN) and its 64% ownership interest in Atlas Pipeline Holdings (AHD). The dividends, management fees and incentive distribution rights for the quarter resulted in Atlas America receiving over $25 million dollars from its subsidiaries.

Another notable piece of news from its report was its purchase of 600,000 units of Atlas Energy Resources at a price of $42 a share. This purchase will bring Atlas America’s ownership interest in Atlas Energy Resources up to 49%. This will help to expand the company's future cash flow, as these units will have a considerable yield. At the end of the quarter, by my calculations the holding company had a little over $105 million in cash on hand available for future dividends, investment in Lightfoot Capital and share repurchases.

The relatively low yield being given to Atlas Energy Resources signals that the company now has a great currency, in terms of its shares, to go out and acquire new assets. This will help Atlas America in the future as the company stands to benefit considerably from the management fees and incentive distribution rights that it derives from Atlas Energy Resources as well as Atlas Pipeline Holdings.

Please take a look at the Atlas America story as it is a great one.

For Further Review:

Q1 Press Release for Atlas America