Atlas Energy targeted by Hedgeye's Kaiser

|About: Atlas Energy (ATLS)|By:, SA News Editor

Atlas Energy's (ATLS -6.6%) only material source of income is distributions from Atlas Pipeline Partners (APL -2.7%) and Atlas Resource Partners (ARP -5.4%), says Hedgeye's Kevin Kaiser, but the majority of APL's and ARP's distributable cash flow is a function of aggressive non-GAAP accounting.

"In our view, ARP and APL’s distributions are funded with capital raises – not real profits – and that can only go on for so long." The downside is considerable, concludes Kaiser, for all three MLPs, particularly ATLS.