Market Overview

UPDATE: Citigroup Cuts PT to $31.50 on Vanguard Natural Resources on Borrowing Base Expansion

Share:
Related
Benzinga's Top Upgrades
10 Stocks Moving In Monday's Pre-Market Session

Citigroup reiterated Vanguard Natural Resources (NYSE: VNR) at Buy and reduced its price target from $33 to $31.50.

Citigroup commented, "Post completion of the Bill Barrett acquisition, VNR's borrowing base was increased from $960 million to $1.2 billion. Pro forma for the acquisition and the senior notes issuance in the fourth quarter, we estimate year end 2012E debt of approximately $1. 2 billion (i.e. $669 million outstanding under credit facility), which implies a 2012E net Debt-toEBITDA ratio and a percentage drawn under the credit facility of 5.3x and 56%, respectively. In addition, we estimate 2013E net Debt to EBITDA ratio of 3.7x. In our opinion, the company is likely to issue equity, in conjunction with an acquisition, to repay debt and reduce leverage."

Vanguard Natural Resources closed at $31.50 on Tuesday.

Latest Ratings for VNR

DateFirmActionFromTo
Mar 2016CitigroupMaintainsNeutral
Mar 2016Raymond JamesUpgradesUnderperformMarket Perform
Mar 2016UBSDowngradesNeutralSell

View More Analyst Ratings for VNR
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Intraday Update Analyst Ratings

 

Related Articles (VNR)

View Comments and Join the Discussion!