UPDATE: Citigroup Initiates Western Gas Equity Partners at Buy on Attractive Total Return

Citigroup initiated coverage on Western Gas Equity Partners

with a Buy rating and a $32.50 price target. Citigroup commented, "We are initiating coverage on WGP with a Buy (1) as we believe investors will generate an attractive total return based on a current yield of 2.3% and our projected distribution growth of 38% over the next 12-months. Despite strong unit price appreciation post-IPO, units remain attractive given the visibility to multiple years of double digit growth that is supported by strong midstream fundamentals in liquid rich resource basins, a beneficial relationship with APC, and leveraged upside from incentive distribution rights." Western Gas Equity Partners closed at $29.92 on Monday.