UPDATE: Citi Downgrades Chesapeake Midstream Partners; Lowers PT

According to a research report published this morning, Citi has downgraded Chesapeake Midstream Partners

from Buy to Neutral, and lowered PT from $33 to $29. Citi commented in the report, "We are downgrading CHKM to Neutral and reducing our TP to $29/unit as we believe the partnership's risk profile has increased following the extreme stock price volatility of Chesapeake Energy (CHK.N; US$16.74; 2), the partnership's general partner and largest customer. Importantly, we are not drawing any conclusions as to the ultimate fate of CHK. However, it seems prudent to look at the potential impacts on the partnership should recent volatility lead to something more operationally material." Chesapeake Midstream Partners closed yesterday at $27.78.