Omega Advisors raises position in Atlas Energy amid Targa deal



Omega Advisors’ 13G filings since October

Omega Advisors added to its position in Atlas Energy LP (ATLS) and Altisource Portfolio Solutions (ASPS). It disclosed stakes in Aspen Group (ASPU), Resource America, Inc. (REXI), and Arbor Realty Trust, Inc. (ABR). It trimmed positions in Chimera Investment Corporation (CIM), SandRidge Energy, Inc. (SD), and Harbinger Group (HRG).

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Omega Advisors and Atlas Energy

Omega Advisors further added to its position in Atlas Energy LP (ATLS) this month. The fund said it holds 7,029,698 shares via an amended 13G filing.

The shares account for a 13.53% stake in Atlas Energy. This is up from the 4,086,140 shares per the fund’s 13F for the third quarter that ended in September 2014.

Omega’s Leon Cooperman owns stakes in Atlas Energy as well as its affiliate companies Atlas Resource Partners, L.P. (ARP) and Atlas Pipeline Partners (APL).

Overview of Atlas Energy

Atlas Energy (ATLS) is a master limited partnership. It owns all of the general partner Class A units and incentive distribution rights and an approximate 28% limited partner interest in its upstream oil and gas subsidiary Atlas Resource Partners, L.P. (ARP).

Atlas Energy also owns and operates the general partner of its midstream oil and gas subsidiary Atlas Pipeline Partners, L.P. (APL) through a 2.0% general partner interest and an approximate 5.8% limited partner interest.

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Atlas Resource Partners (ARP) is an exploration and production master limited partnership. It owns an interest in more than 14,500 producing natural gas and oil wells located primarily in Appalachia, the Barnett Shale in Texas, the Mississippi Lime in Oklahoma, the Raton Basin in New Mexico, the Black Warrior Basin in Alabama, and Rangely Field in Colorado.

Atlas Pipeline Partners (APL) is active in the gathering and processing segments of the midstream natural gas industry. In Oklahoma, southern Kansas, Texas, and Tennessee, Atlas Pipeline Partners owns and operates 17 gas processing plants, 18 gas treating facilities, as well as approximately 11,200 miles of active intrastate gas gathering pipeline.

Targa Resources to acquire Atlas Energy and Atlas Pipeline Partners

On October 13, 2014, Targa Resources Corp. (TRGP) and its master limited partnership (or MLP) Targa Resources Partners LP (NGLS) announced the acquisition of Atlas Energy and Atlas Pipeline Partners. According to the deal details in an October Market Realist article, the combined company will create a midstream enterprise with more than 22,500 miles of crude oil and natural gas pipelines across the United States. The $7.7-billion deal is expected to close in the first quarter of 2015.

The next part of this series will highlight changes to Omega Advisors’ position in Altisource Portfolio Solutions (ASPS).


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