UPDATE: Oppenheimer Initiates Coverage on Western Gas Equity Partners LP with Outperform Rating, $69 PT on Good Market Position

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

with an Outperform rating and $69.00 price target. In the report, Oppenheimer noted, “We initiate coverage of WES with an Outperform rating and $69 PT. We are attracted to WES's combination of high growth and low business risk as it is firmly supported by its sponsor and parent, APC. WES has assets in several growing liquids-rich supply basins, which has helped it offset declines in its dry gas businesses and provides a foundation on which to source organic projects. In addition, the supportive relationship WES has with APC cannot be overemphasized as a source of dropdowns and attractive long-term contracts. We believe the MLP is well situated to operate for the remainder of 2013 without tapping the equity markets (excluding additional acquisitions).” Western Gas Equity Partners LP closed on Tuesday at $38.56.