UPDATE: Oppenheimer Initiates Coverage on Williams Partners on Mixed Factors

In a report published Wednesday, Oppenheimer analyst Bernard Colson initiated coverage on

with a Perform rating. In the report, Oppenheimer noted, “We initiate coverage of Williams Partners (WPZ) with a Perform rating and do not assign a price target. Fundamentals of the dry natural gas business remain challenged. This is being offset by liquids-rich businesses including Marcellus gathering & processing. And while the outlook is positive for the ethylene production business, we are concerned with WPZ's commodity price exposure. In addition, distribution coverage is expected to remain below 1x through 2014. We appreciate management's confidence in the future (they continue to raise the distribution at a rapid rate despite weak coverage) but question this strategy given our preference for a more conservative approach.” Williams Partners LP closed on Tuesday at $49.42.