In a report published Thursday, Bank of America analyst Gabe Moreen downgraded the rating on PAA Natural Gas Storage PNG from Neutral to Underperform, and slightly lowered the price target from $21.00 to $20.00.
In the report, Moreen noted, “Monday after market close, PNG reported 1Q13 adjusted EBITDA of $32mn, slightly above the BofAML estimate of $29mn, consensus estimate of $30mn, and management guidance of $30mn. 1Q13 distributable cash flow (DCF) of $29mn was above our estimate of $27mn. The slight beat for the quarter was due to marketing activities. PNG previously declared a 1Q13 cash distribution of $0.3575 per LP unit ($1.43 annualized), representing a 0/0% increase over 4Q12/1Q12 levels, respectively, below the BofAML estimate of $0.37 per LP unit. Management reiterated its 2013 EBITDA guidance of $117-123mn versus the revised BofAML estimate of $118mn (previously $123mn) and consensus of $120mn. 2013 DCF guidance of $108mn implies 1.0x distribution coverage at current distribution levels.”
PAA Natural Gas Storage closed on Wednesday at $22.45.
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