ATLS: Production Ahead of Estimates

SUBASH CHANDRA, Jefferies & Co. (10/13/2010)
"Atlas Energy Announces Q3 production 3% above our estimate. . .Q3 production of 118.3 MMcfe/d, 3% above our estimate of 115 MMcfe/d. Beat was driven in Appalachia, which came in at 63.3 MMcfe/d vs. our estimate of 60 MMcfe/d. ATLS has turned into line 21 Marcellus wells in the first three quarters of 2010 (six this quarter), already surpassing our full-year estimate of 18.

Atlas has the unique advantage of growing at an exceptional rate from a defined development program from within cash flows. Infrastructure buildout continues without significant delay. Next 90 days are catalyst heavy, with potential Collingwood data and an update on divestiture activity. Reiterate our Buy rating."

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