UPDATE: Wells Fargo Initiates Coverage on Crestwood Midstream Partners LP Following Completion of Merger

In a report published Friday, Wells Fargo Securities analyst Michael Blum initiated coverage on

with an Outperform rating. In the report, Wells Fargo Securities noted, “We are initiating coverage of the new Crestwood Midstream Partners, LP (CMLP) with an Outperform rating and valuation range of $26-28. Our DCF/unit estimates for 2013 and 2014 are $1.65 and $2.04, respectively. To note, our rating, valuation range and estimates reflect the combination of legacy Crestwood Midstream Partners (Outperform) with Inergy Midstream, LP (NRGM, Suspended). The merger closed on 10/7/13 and the surviving entity, formerly known as Inergy Midstream, was renamed Crestwood Midstream Partners, LP. We forecast a five-year distribution CAGR of 6.4% supported by $1.6B of total growth capital investments (or an average of $316MM annually).” Crestwood Midstream Partners LP closed on Thursday at $22.80.