UPDATE: Citigroup Initiates Atlas Resource Partners at Neutral; Growth Priced In

Citigroup initiated coverage on Atlas Resource Partners ARP with a Neutral rating and a $23.00 price target. Citigroup commented, "In the past 10 months, ARP has demonstrated its ability to find and fund high value transactions. Indeed, the result of ~$694 million in acquisitions completed in the past year, the partnership has increased reserves by ~425%, more than tripled production and increased distribution to unitholders by ~20%. Moreover, ARP is on track to increase distribution by an additional ~33% in the next twelve months. While dist. growth in the past has been impressive and the outlook is positive, we believe most of this potential is already priced into the units (i.e. yield of 8.2% vs peer average of 9.3%)." Atlas Resource Partners closed at $23.40 on Thursday.