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davidbdc » Comments » APL

  • Atlas Pipelines: I'm Out of Here [View article]
    APL has issues, but there is a lot more upside than downside here.

    If they can get a partner for some of their developments then the "pie gets bigger". Will they have lost some of the potential of the Marcellus? Yes, but can they exploit more with a partner than on their own? Yes. So 60% of a big development can be more than 100% of a small development.

    And would it be better if they didn't have to sell some of the other assets? yes, but thats life. I would wait until the asset sales are announced and the impact on distributions in the future. What you left out is that after this month they have no major debt due until 2013 I believe....so thats a lot of breathing room. Even if the distribution was cut 33% it would still yield 25% at this level. The risk/reward here is pretty good IMO.
    Mar 16 18:52 pm |Rating: 0 0 |Link to Comment
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