UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Raises PT on Access Midstream Partners LP
In a report published Wednesday, Bank of America Merrill Lynch reiterated its Buy rating on Access Midstream Partners LP (NYSE: ACMP), and raised its price target from $34.00 to $38.00.
BofA Merrill Lynch noted, “Tuesday after market close, ACMP announced it agreed to acquire remaining midstream assets from its former general partner (GP), Chesapeake Energy Corp. (NYSE: CHK), for $2.16bn. The acquisition is expected to close by year-end. In addition, it was announced that Williams (NYSE: WMB) will acquire a 50% GP and 23% LP interest in ACMP from Global Infrastructure Partners (GIP), which owns the remaining interest in ACMP's GP and a substantial LP interest as well. The Chesapeake Midstream Development (CMD) assets consist of fee-based gas gathering and processing (G&P) assets in the Eagle Ford, Utica, Niobrara, and Haynesville shales. ACMP also extended its exclusive negotiation period with CHK for the pending acquisition of certain Mid-Continent midstream assets to 1 March 2013. We are raising estimates to incorporate the CMD acquisition.”
Access Midstream Partners LP closed on Tuesday at $34.03.
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