UPDATE: Oppenheimer Assumes Coverage on EV Energy Partners LP, Downgrades to Perform, Removes PT Following Utica Transaction Announcement

In a report published Monday, Oppenheimer analyst Bernard Colson assumed coverage on

, downgraded the rating from Outperform to Perform, and removed the $49.00 price target. In the report, Oppenheimer noted, “We assume coverage of EVEP with a Perform rating (previous rating: Outperform) and remove our price target. The big news is that management finally announced its first Utica transaction, selling 4,345 acres for approximately $12.9K/acre. While we view this as a positive value marker, the absolute size is disappointing and leaves lingering questions about the value of the remaining position. In the meantime, investment in the highly attractive Utica midstream assets marches on, creating equity needs for EVEP. Even though cash flow has started to flow in from midstream, it likely will be several years before the full run-rate is realized.” EV Energy Partners LP closed on Friday at $39.04.