Barclays on Energy: U.S. MLPs: Revising Estimates

Barclays on Energy: U.S. MLPs: Revising Estimates

Barclays analyst, Jeffrey W. Robertson, said, "We are revising our 2011 NYMEX oil price assumption to $94/bbl from $91.25/bbl and our natural gas price assumption to $4.05/MMBtu from $4.10/MMBtu. We are revising our 2012 NYMEX oil price assumption to $95/bbl from $90/bbl and our natural gas price assumption to $3.75/MMBtu from $4.00/MMBtu. We are revising our 2013 NYMEX oil price assumption to $95/bbl from $90/bbl and maintaining our natural gas price assumption of $4.25/MMBtu."

Breitburn Energy Partners (NYSE: BBEP) - "We are revising our FY11 DCF per unit estimate to $2.20 from $2.25 and our FY12 DCF per unit estimate to $3.15 from $2.90. We are establishing an FY13 DCF per unit estimate of $2.40. Our estimates imply distribution coverage ratios of 1.8x in 2012 and 1.4x in 2013 based on the annualized 3Q11 distribution of $1.74. The decrease in the FY13 coverage ratio is primarily due to a lower estimated hedging gain as higher-priced floors roll off."

Linn Energy (Nasdaq: LINE) - "We are maintaining our FY11 DCF per unit estimate of $3.30 and lowering our FY12 DCF per unit estimate to $3.40 from $3.55. We are establishing an FY13 DCF per unit estimate of $3.55. Our estimates imply distribution coverage ratios of 1.2x in 2012 and 1.3x in 2013 based on the annualized 3Q11 distribution of $2.76."

Vanguard Natural Resources (NYSE: VNR) - "We are revising our FY11 DCF per unit estimate to $3.20 from $3.15 and our FY12 DCF per unit estimate to $2.90 from $3.00. We are establishing an FY13 DCF per unit estimate of $2.90. Our estimates imply distribution coverage ratios of 1.2x in 2012 and 1.3x in 2013 based on the annualized 3Q11 distribution of $2.31. Upon completing its acquisition of Encore Energy Partners, VNR had $672 million drawn on its credit facility which has a borrowing base of $765 million."

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