Atlas Energy initiated with a Buy at Benchmark, citing ‘competitive moat’

As previously reported, Benchmark initiated coverage of Atlas Energy with a Buy rating and $27 price target. Atlas is the number one frac sand provider in the Permian with a 30% share while also being the lowest cost provider with “a competitive moat around mine locations and logistics solutions,” the analyst tells investors. Atlas’ static and mobile sand mines are within a 50-mile radius of about 90% of all well sites in the Permian basin and its Kermit and Monahans mines have the highest quality sand in the Permian, the analyst added.