UPDATE: Goldman Sachs Reiterates Buy Rating, Lowers PT on MarkWest Energy Partners LP on Disappointing 2014 Guidance, but Growth Story Remains Intact

In a report published Thursday, Goldman Sachs analyst Theodore Durbin reiterated a Buy rating on MarkWest Energy Partners LP MWE, but lowered the price target from $81.00 to $79.00. In the report, Goldman Sachs noted, “MarkWest Energy Partners (MWE, Buy) reported 3Q13 adjusted EBITDA of $154mn, below our $161mn estimate and consensus of $179mn. The miss was due primarily to lower Marcellus segment operating income, which was impacted by operational constraints. After a detailed model rework following the initial issuance of disappointing 2014 DCF guidance, we lower our 2014-2016 EBITDA estimates by 18% on average. The downward revision primarily reflects lower Marcellus operating income driven by lower unit margins. Growth capex guidance for 2013 was increased by $500mn to $2.0bn-$2.3bn and 2014 guidance was initiated at $1.8bn-$2.3bn.” MarkWest Energy Partners LP closed on Wednesday at $67.75.