Barclays Reiterates an 'Overweight' on OGE Energy (OGE); Additional Growth Initiatives Announced at Enogex
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Price: $45.62 -2.38%
Rating Summary:
8 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays reiterates an 'Overweight' on OGE Energy (NYSE: OGE) price target raised $2 to $59.
Barclays analyst says, "On Friday, OGE subsidiary Enogex announced agreements to acquire natural gas midstream pipeline assets with dedicated rights to gather and process production from a large acreage position located in Granite Wash, Tonkawa and Marmaton plays of northwestern Oklahoma, a region known to be the most profitable basin currently in the US. We view this acquisition and expansion as consistent with OGE's/Enogex articulated strategy to leverage its gathering and processing expertise in areas known to be prolific. We are increasing our 2013E EPS from $3.88 to $3.95. Our $59 price target is predicated on 2013E EPS of $3.95, comprised of $2.68E at the utility less $0.09 Hold Co. costs at a 13.1X group multiple, discounted 5% for regulatory risk, equating to $32, plus $27 for Enogex, premised on a 9.5X EV/EBITDA with an assumed 85% majority interest ownership."
For more ratings news on OGE Energy click here and for the rating history of OGE Energy click here.
Shares of OGE Energy closed at $47.79 yesterday.
Barclays analyst says, "On Friday, OGE subsidiary Enogex announced agreements to acquire natural gas midstream pipeline assets with dedicated rights to gather and process production from a large acreage position located in Granite Wash, Tonkawa and Marmaton plays of northwestern Oklahoma, a region known to be the most profitable basin currently in the US. We view this acquisition and expansion as consistent with OGE's/Enogex articulated strategy to leverage its gathering and processing expertise in areas known to be prolific. We are increasing our 2013E EPS from $3.88 to $3.95. Our $59 price target is predicated on 2013E EPS of $3.95, comprised of $2.68E at the utility less $0.09 Hold Co. costs at a 13.1X group multiple, discounted 5% for regulatory risk, equating to $32, plus $27 for Enogex, premised on a 9.5X EV/EBITDA with an assumed 85% majority interest ownership."
For more ratings news on OGE Energy click here and for the rating history of OGE Energy click here.
Shares of OGE Energy closed at $47.79 yesterday.
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