Credit Suisse Sees 4Q In-Line, Distribution Growth Outlook Maintained for Western Gas Partners, LP

In a report published Friday, Credit Suisse analyst John Edwards reiterated an Outperform rating and $86.00 price target on

. In the report, Credit Suisse noted, "Mgmt. is awaiting Anadarko's results on March 3 before giving detailed guidance, though they did affirm distribution growth of "no less than 15%". The incremental takeaway from the call was that WGP is pushing planned expansion projects for the newly acquired Nuevo (now called Delaware Basin Midstream) assets out 2-3 quarters as mgmt. no longer believes there will be sufficient demand in 2015 for the additional capacity given the depressed commodity prices. Ramsey IV (200 mmcf/d) is now expected to be added in 1Q16 vs mid-2015 and Ramsey V (another 200 mmcf/d) will be added mid-2016 vs. late 2015. Our estimates move slightly lower on the shift in timing of the projects with EBITDA falling 4% in 2015, 6% in 2016 and 5% in 2017 while total DCF is flat in 2015 and falls 5% and 4% in 2016 and 2017." Western Gas Partners, LP closed on Thursday at $70.59.