Below please find an update on the total number of units sold short across the three Atlas Energy entities. The following chart shows the total number of units sold short for each name since April of 2013. The data is somewhat delayed, typically 10-12 days.
(Click to view)
Two week change in the amount of units sold short:
- ATLS: Up 2.4%
- APL: Down 2.9%
- ARP: Up 8.0%
On Monday October 13, Targa Resources Partners LP and Targa Resources Corp. announced plans to acquire Atlas Pipeline Partners, L.P. and Atlas Energy, L.P. (Press Release). This announcement is likely to cause a drop in short interest for ATLS and APL.
If you are a retail investor and shorting these names, please pay attention to the Ex-Distribution dates so you don’t also have to pay the distributions. In addition, you should also take into account your additional cost to borrow each security from your broker. Many MLPs are typically “Hard to Borrow” so assuming your broker finds you units to borrow to short, they may charge a high rate.