Atlas Resource Partners, L.P. (ARP), BreitBurn Energy Partners L.P. (BBEP), and Seven Oil Stocks With Yields Up To 9%

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Atlas Resource Partners
Atlas Resource Partners, L.P. (NYSE:ARP) explores and produces with interests in some of the biggest and most lucrative energy properties in the country. That includes assets in the Barnett and Marcellus shale plays, two of the largest shale formations in the country. Atlas has also been struggling, with shares down 17% in the past year.

7 Oil Stocks With Yields Up To 9%

But with analysts expecting EPS of $1.15 in 2013 and $1.61 in 2014, that has sweetened the valuation picture considerably. As it stands, Atlas’s forward P/E of 21 is a sharp discount to its 10-year average of 33. And when you throw in a hefty dividend yield of 8%, there is compelling value and income to be had.

Risks to Consider: Oil E&P stocks are some of the most sensitive energy stocks in the market. Any signs of slower GDP growth or weakness in the global economy will weigh on the group heavily.

Action to Take –> Crude just logged its best five-day run in eight months. That’s a bullish signal heading into spring and summer, which are peak seasons for consumption. These seven E&P stocks stand to benefit the most from higher crude prices, but the group still trades at historically low valuations after falling sharply in the past two years. My favorites are BreitBurn Energy Partners L.P. (NASDAQ:BBEP) because of its outsize dividend yield and Atlas Resource Partners, L.P. (NYSE:ARP) because of its bullish earnings growth projection.

This article was originally written by Michael Vodicka, and posted on StreetAuthority.


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