UPDATE: Oppenheimer Initiates Coverage on Memorial Production Partners LP on Attractive Growth Outlook

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

with an Outperform rating and $24.00 price target. In the report, Oppenheimer noted, “We initiate coverage of MEMP with an Outperform rating and a 12- to 18-month $24 PT. In our opinion, MEMP's GP provides for an attractive growth outlook. In addition to the recent $606M dropdown, which included new assets in the Rockies and the Permian, MEMP's sponsor still has roughly one TCF of reserves which we believe may develop into ideal assets for future dropdowns. While the asset base has migrated recently toward liquids production, MEMP retains attractive upside from potential future natural gas price increases in the long term. Shorter term, the extensive hedge portfolio largely mitigates the impact of fluctuating commodity prices.” Memorial Production Partners LP closed on Tuesday at $20.17.