Wells Fargo Upgrades Penn Virginia Resource Partners (PVR) to Outperform; Positive on Midstream Acquisition

Wells Fargo upgraded Penn Virginia Resource Partners (NYSE: PVR) from Market Perform to Outperform, price target range raised to $29-32 from $26-28.

Analyst, Ronald Londe, said, "PVR announced an agreement to acquire natural gas gathering systems in the Marcellus shale from Chief Gathering LLC (Chief) for $1 billion. We view this transaction as a positive event for PVR unitholders because it transforms the partnership from roughly 60% of PVR’s EBITDA coming from coal operations to midstream operations accounting for 75% of its total EBITDA by the end of 2013. Further, it adds to the visibility of distribution growth...We are increasing our 2012 and 2013 DCF per unit estimates to $2.23 and $3.54 from $2.20 and $2.36, respectively."

For an analyst ratings summary and ratings history on Penn Virginia Resource Partners click here. For more ratings news on Penn Virginia Resource Partners click here.

Shares of Penn Virginia Resource Partners closed at $24.95 yesterday.

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