Goldman Sachs Starts MarkWest Energy (MWE) at Neutral

Goldman Sachs initiates coverage on MarkWest Energy (NYSE: MWE) with a Neutral rating and $59 price target, saying Marcellus growth is offset by NGL and volume risks.

While the firm is positive on the company's exposure to the high growth Marcellus and Utica shale plays, its low cost of capital continued move towards fee-based earnings, they are concerned about: (1) earnings exposure to weak NGL prices, (2) volume sensitivity to producer activity, (3) increased competition and execution risk, and (4) potential for further equity dilution.

For an analyst ratings summary and ratings history on MarkWest Energy click here. For more ratings news on MarkWest Energy click here.

Shares of MarkWest Energy closed at $61.40 yesterday.

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