Citigroup Reaffirms ONEOK Hold Rating And $81.50 PT

ONEOK Partners, L.P.

adjusted EBITDA of $220.8 million was “5% below our $232 million estimate but was inline with the consensus estimate,” Citigroup reports. Downside was mainly a result of lower than expected volumes in the NGL segment. “Distributable cash flow of $156.0 million covered distributions by 1.09x. DPU was raised by $0.01 to $1.13/unit or $4.52 annualized, up 3.7% YOY,” Citigroup writes. “We reaffirm our Hold rating and $81.50 target on OKS. While we believe the partnership may see some near-term upside on processing margins, we remain cautious on Conway pricing in the long run.” ONEOK currently trades at $79.24.