paa

Atlas Pipeline & Atlas Energy's Positive Synergy

MLP's like APL must grow to keep those payouts coming. APL's debt equals their market cap. How can the fund organic growth? How can they borrow to buy more assets? It's not clear to me.

Atlas Pipeline Holdings: Accelerated Growth in the Pipeline

The secondary offering of 5 million common units is a device to get the public to pay off the $250 million APL expects to lose on their derivatives. This sort of three-card monte is typical of all the pipeline MLPs. ADH of course wins no matter what, so your recommendation is sound.

Personally, I can not see why anyone would purchase any of the new stock issue. Let APL and ADH find the money someplace else. I'm eager to see if this issuance works. If it does, more for current holders. If it doesn't, the general partner still makes out okay and everyone else loses.