UPDATE: Oppenheimer Initiates Coverage on Marlin Midstream on Strong Balance Sheet, Inherent Structural Risks
In a report published Friday, Oppenheimer analyst Bernard Colson initiated coverage on Marlin Midstream Partners LP (NASDAQ: FISH) with a Perform rating.
In the report, Oppenheimer noted, “We initiate coverage of Marlin Midstream Partners (FISH) with a Perform rating and do not assign a price target. We believe the MLP was structured to provide the CEO a strong incentive to grow LP distributions. Assets are modern and efficient with predominantly fee-based contracts, many with minimum volume commitments. The balance sheet is very strong, leaving FISH plenty of dry powder to acquire additional assets. However, we believe the current yield accurately captures the risks inherent in the structure, namely FISH's dependence on its private parent company NuDevco. Not being able to readily ascertain the condition of the parent is a risk, in our view.”
Marlin Midstream Partners LP closed on Thursday at $18.13.
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