Barclays Maintains an 'Overweight' on Western Gas Partners (WES); Raising PT Post Drop Down

Barclays maintains an 'Overweight' on Western Gas Partners (NYSE: WES) price target raised from $41 to $44.

Barclays analyst says, "WES announces $483 mm drop down from Anadarko (NYSE: APC): Western announced plans to acquire Red Desert complex and related assets in the Green River basin of southwestern Wyoming...Acquisition reflects better-than-expected accretion given favorable pricing: The 7x transaction multiple reflects more favorable pricing compared to the 8x multiple we modeled in, which leads to greater accretion. We are adjusting our growth forecast to 14% in 2012 (up from 11%) and 12% in the next 4 years, given continued strong APC sponsorship combined with solid balance sheet and strong coverage. This level of growth puts WES among the highest in the space."

FY12 EPS estimate raised from $2.12 to $2.35...Our price target is based on a 12 month distribution run rate of $1.96 and target yield of 4.5%.

For an analyst ratings summary and ratings history on Western Gas Partners click here. For more ratings news on Western Gas Partners click here.

Shares of Western Gas Partners closed at $39.53 yesterday.

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