Barclays Maintains an 'Equalweight' on NiSource (NI); Digging into NI's Utica Potential
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Price: $40.62 -2.45%
Rating Summary:
18 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on NiSource (NYSE: NI) price target of $22.00.
Barclays analyst says, "While we don't think valuing NI's potential Utica position on a per share basis is appropriate, our analysis points to $1-$2/sh in potential value in a full monetization scenario. NI management seems intent on waiting for the Utica play to develop more fully before considering any type of monetization. As such, we don't think that NI's objective here is to simply sublease as early as possible, instead, this acreage could be a source of funds for future infrastructure growth in the region as the play develops."
"The most important datapoints going forward from here are 1) Pricing of potential JV announcements and 2) Well results from the western part of the play. It is important to note that our methodology, especially when considering how early the Utica is in its development, carries some risks; however, we think there is value in presenting a framework with which to think of NI's holdings in the play."
For more ratings news on NiSource click here and for the rating history of NiSource click here.
Shares of NiSource closed at $22.09 yesterday.
Barclays analyst says, "While we don't think valuing NI's potential Utica position on a per share basis is appropriate, our analysis points to $1-$2/sh in potential value in a full monetization scenario. NI management seems intent on waiting for the Utica play to develop more fully before considering any type of monetization. As such, we don't think that NI's objective here is to simply sublease as early as possible, instead, this acreage could be a source of funds for future infrastructure growth in the region as the play develops."
"The most important datapoints going forward from here are 1) Pricing of potential JV announcements and 2) Well results from the western part of the play. It is important to note that our methodology, especially when considering how early the Utica is in its development, carries some risks; however, we think there is value in presenting a framework with which to think of NI's holdings in the play."
For more ratings news on NiSource click here and for the rating history of NiSource click here.
Shares of NiSource closed at $22.09 yesterday.
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