UBS Raises Price Target Following EnLink Midstream Partners (ENLK) Feedback Questions
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
UBS reiterated a Buy rating on EnLink Midstream Partners (NYSE: ENLK), and raised the price target to $20.00 (from $19.00), after addressing feedback questions.
Analyst Shneur Gershuni commented, "Assuming the same YOY decline rate through 2018 as in 3Q16, cash flow from North Texas should decline to ~$81MM/qtr in 2018 from $90MM/qtr in 3Q16. ENLK plans to add a 120MMcf/d plant in the Permian (50/50 JV) this year and a 200MMcf/d plant in the STACK in 1H2017, which should increase EBITDA by ~$12MM/qtr more than offsetting. Additionally, ENLK should benefit from operating leverage at current plants in the Permian and STACK as well as lower ethane rejection in 2017/18. Management has been focusing on potential asset sale to fund the first installment payment of $250MM in 1Q17 (in particular the sale of its interest in Howard Energy Partners), but also mentioned potential to use traditionally funding sources ATM and debt as well as also has the option from the original agreement to issue additional preferred equity to TPG/Goldman. If ENLK doesn’t sell its interest in Howard Energy Partners, we expect ENLK will likely issue the preferred equity to fund the 1st installment payment. We expect all series B preferred units will be converted to common units in 3Q17, which we estimate will lower 3Q17 coverage to 1.04x, down from 1.14x in 2Q17."
Shares of EnLink Midstream Partners closed at $17.39 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alibaba (BABA) PT Raised to $148 at Deutsche Bank
- GenMark Diagnostics (GNMK) PT Raised to $15 at Needham & Company
- Sanchez Energy (SN) PT Raised to $16 at FBR Capital; Reiterates Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!