UPDATE: Stifel Nicolaus Initiates EV Energy Partners at Buy on Distribution Outlook

Stifel Nicolaus initiated coverage on EV Energy Partners

with a Buy rating and a $85 price target. Stifel Nicolaus said, "We are initiating coverage of EV Energy Partners, L.P. (EVEP) with a Buy rating and 12-month target price of $85/unit. Our target price combines our estimated conventional MLP assets value of $40/unit, which is based on a targeted distribution yield of 7.5% using EVEP's current annualized distribution of $3.06, plus our risked Utica potential of $45/unit. … EVEP's sponsor, EnerVest, Ltd., one of the 25 largest oil and gas companies in the U.S., operates 93% of EVEP's properties and provides a clear and advantageous dropdown pipeline. EnerVest management has estimated it currently has $2 billion of assets that are suitable as dropdowns into EVEP." EV Energy Partners closed at $64.98 on Wednesday.