Barclays on U.S. MLPs: VNR/ENP: Second Quarter Update
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Rating Summary:
0 Buy, 7 Hold, 7 Sell
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Today's Overall Ratings:
Up: 7 | Down: 10 | New: 6
Rating Summary:
0 Buy, 7 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 10 | New: 6
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Barclays on U.S. MLPs: VNR/ENP: Second Quarter Update
Barclays analyst says, "We believe Vanguard Natural Resources (NYSE: VNR) is capable of supporting mid-single digit distribution growth over the next several years.
VNR Estimate Revisions - We are revising our FY11 EBITDA and DCF per unit
estimates to $4.95/$3.15 from $5.25/$3.50, primarily to reflect lower estimated
realized oil and NGL prices, partially offset by higher production from the Permian acquisition. We are revising our FY12 EBITDA and DCF per unit estimates to $4.45/$3.00 from $4.65/$3.05 for the same reasons. Our distributable cash flow estimates imply coverage ratios of 1.4x in 2011 and 1.3x in 2012 based on the company's 2Q11 annualized distribution of $2.32 per unit."
Encore Energy Partners (NYSE: ENP) Estimate Revisions - "We are revising our FY11 EBITDA and DCF per unit estimates to $2.85/$2.15 from $3.00/$2.30. We are bumping our FY12 EBITDA per unit estimate to $2.90 from $2.85, but maintaining our DCF per unit estimate of $2.15. Our distributable cash flow estimates imply coverage ratios of 1.2x in 2011 and 2012 based estimated full-year unit distributions of $1.84 and $1.83, respectively."
Distributions/Valuation - "VNR bumped its 2Q11 distribution by 2% to $0.58 per unit ($2.32 annualized) from the prior quarter, while ENP decreased its 2Q11 distribution by 4% to $0.47 per unit ($1.88 annualized) from the prior quarter. VNR and ENP are currently yielding 7.7% and 9.0%, respectively, compared with an E&P MLP group average of 7.7%."
Barclays analyst says, "We believe Vanguard Natural Resources (NYSE: VNR) is capable of supporting mid-single digit distribution growth over the next several years.
VNR Estimate Revisions - We are revising our FY11 EBITDA and DCF per unit
estimates to $4.95/$3.15 from $5.25/$3.50, primarily to reflect lower estimated
realized oil and NGL prices, partially offset by higher production from the Permian acquisition. We are revising our FY12 EBITDA and DCF per unit estimates to $4.45/$3.00 from $4.65/$3.05 for the same reasons. Our distributable cash flow estimates imply coverage ratios of 1.4x in 2011 and 1.3x in 2012 based on the company's 2Q11 annualized distribution of $2.32 per unit."
Encore Energy Partners (NYSE: ENP) Estimate Revisions - "We are revising our FY11 EBITDA and DCF per unit estimates to $2.85/$2.15 from $3.00/$2.30. We are bumping our FY12 EBITDA per unit estimate to $2.90 from $2.85, but maintaining our DCF per unit estimate of $2.15. Our distributable cash flow estimates imply coverage ratios of 1.2x in 2011 and 2012 based estimated full-year unit distributions of $1.84 and $1.83, respectively."
Distributions/Valuation - "VNR bumped its 2Q11 distribution by 2% to $0.58 per unit ($2.32 annualized) from the prior quarter, while ENP decreased its 2Q11 distribution by 4% to $0.47 per unit ($1.88 annualized) from the prior quarter. VNR and ENP are currently yielding 7.7% and 9.0%, respectively, compared with an E&P MLP group average of 7.7%."
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