Financial Analysis: Bonanza Creek Energy (BCEI) versus Atlas Resource Partners, L.P. (ARP)
Bonanza Creek Energy (NYSE: BCEI) and Atlas Resource Partners, L.P. (NYSE:ARP) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Risk and Volatility
Bonanza Creek Energy has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Atlas Resource Partners, L.P. has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Institutional & Insider Ownership
91.0% of Bonanza Creek Energy shares are owned by institutional investors. 0.6% of Bonanza Creek Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Atlas Resource Partners, L.P. pays an annual dividend of $0.50 per share and has a dividend yield of 157.2%. Bonanza Creek Energy does not pay a dividend. Atlas Resource Partners, L.P. pays out -5.6% of its earnings in the form of a dividend. Atlas Resource Partners, L.P. has raised its dividend for 5 consecutive years.
This is a breakdown of recent ratings and price targets for Bonanza Creek Energy and Atlas Resource Partners, L.P., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bonanza Creek Energy||0||4||0||0||2.00|
|Atlas Resource Partners, L.P.||0||0||0||0||N/A|
Bonanza Creek Energy currently has a consensus price target of $25.00, suggesting a potential downside of 9.91%. Given Bonanza Creek Energy’s higher probable upside, analysts clearly believe Bonanza Creek Energy is more favorable than Atlas Resource Partners, L.P..
This table compares Bonanza Creek Energy and Atlas Resource Partners, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bonanza Creek Energy||-53.37%||-24.22%||-4.05%|
|Atlas Resource Partners, L.P.||N/A||N/A||-35.27%|
Valuation and Earnings
This table compares Bonanza Creek Energy and Atlas Resource Partners, L.P.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bonanza Creek Energy||$193.29 million||2.93||$76.38 million||($233.95)||-0.12|
|Atlas Resource Partners, L.P.||N/A||N/A||N/A||($9.00)||-0.04|
Bonanza Creek Energy has higher revenue and earnings than Atlas Resource Partners, L.P.. Bonanza Creek Energy is trading at a lower price-to-earnings ratio than Atlas Resource Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Bonanza Creek Energy Company Profile
Bonanza Creek Energy, Inc. (Bonanza Creek) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company’s oil and liquids-weighted assets are concentrated primarily in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in southern Arkansas. In addition, the Company owns and operates oil-producing assets in the North Park Basin in Colorado and the McKamie Patton Field in southern Arkansas. The main areas in which the Company operates in the Rocky Mountain region are the Wattenberg Field in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. Its Wattenberg Field operations are in the oil and liquids-weighted extension area of the Wattenberg Field targeting the Niobrara and Codell formations. In southern Arkansas, it targets the oil-rich Cotton Valley sands in the Dorcheat Macedonia and McKamie Patton Fields.
Atlas Resource Partners, L.P. Company Profile
Atlas Resource Partners, L.P. is an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States. The Company is a sponsor and manager of tax-advantaged investment partnerships (drilling partnerships), in which it co-invests, to finance a portion of its natural gas, crude oil and natural gas liquids production activities. The Company operates through three segments: gas and oil production, well construction and completion, and other partnership management. Its production positions are in the areas, including Barnett Shale/Marble Falls, Appalachian Basin, Coal-Bed Methane, Rangely, Eagle Ford, Mississippi Lime/Hunton and Chattanooga Shale. The Barnett Shale and Marble Falls play are located east of the Bend Arch and west of the Quachita Thrust in the Fort Worth Basin of northern Texas. It has various coal-bed methane developments across coal-bed methane producing areas.
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