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Analyst Actions: EV Energy Partners LP Upgraded To Outperform at Credit Suisse; Shares Up 3%

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Credit Suisse says: "Achievable Utica Expectations & High-Multiple Growth Drivers; UPGRADING to OUTPERFORM (from Neutral); Lowering Ests."

Upgrading to OP (from N): "Following a reset of Utica expectations, we believe EVEP is positioned to Outperform. We expect EVEP to complete its Utica monetization and reinvestment in 2013 resulting in meaningful accretion to unitholders. Furthermore, EVEP's high-multiple growth platform (midstream/ORRI) should drive sustainable, differentiated cash flow growth over the near-term and long-term. In our view, both of these levers position EVEP to sustain above average distribution growth for years to come."

Utica Expectations Finally Low Enough to Beat: "As suspected, EVEP did not yet receive an acceptable offer for its Utica acreage. Following detailed disclosure of its acreage position by county, we forecast EVEP to receive ~$420mm (~$4k/acre). Based on the current price, we estimate the market is discounting only ~$2k/acre for EVEP's 104k net marketed acres."

High Multiple Midstream & ORRI Provide Differentiated Growth: "We estimate ~37% of EVEP's cash flow will come from its ORRI and midstream investments by 2017. Not only do these high-multiple assets provide robust near-term growth, they should lead to a higher sustainable long-term growth rate relative to its upstream peers."

Maintain $57 TP / Updating Estimates: "Our $57 target price is based on a three-stage DDM and adds our estimate for the value of EVEP's Utica acreage ($11/unit). We are lowering our 2013/2014/2015 EPU Estimates to $0.38/$1.43/$1.98 (from $1.87/$2.45/$3.09) respectively."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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