UPDATE: Bank of America Raises PT on Exterran Partners LP on Announced Drop-Down

In a report published Friday, Bank of America reiterated its Buy rating on Exterran Partners LP

, and raised its price target from $27.00 to $29.00. Bank of America noted, “This morning before market open, EXLP announced a $174mn drop-down of compression assets from its general partner (GP), Exterran Holdings, Inc. (EXH). This is in-line with past drop-downs, which have ranged from $150-250mn. EXLP is acquiring US contracts serving 50 customers along with ~370 compressor units (253,000 horsepower (hp)) and ~200 compressor units (100,000 hp) currently being leased from EXH to EXLP. Following the close of the transaction (expected in March/April), EXLP will own ~70% (previously ~62%) of the combined EXH/EXLP US contract compression business. The timing and scope of this transaction is in-line with our previous comments.” Exterran Partners LP closed on Thursday at $23.97.