Credit Suisse Upgrades Enable Midstream Partners After EBITDA Guidance Trim

In a report published Friday, Credit Suisse analysts upgraded the rating on

from Neutral to Outperform, while raising the price target from $20 to $21. Enable Midstream reported robust 1Q15 results, with both EBITDA and DCF in-line with the Credit Suisse estimates. In the report Credit Suisse noted, "Gathering and processing volumes of 4,860 MMcf/d were 2% above our forecast though liquids volumes of 71,720 bpd were 20% below mostly on NGL volumes 15% lower than our estimate. Transportation volumes of 5,720 MMcf/d were 7% above forecast. Lower G&P volumes were mostly offset by margins with segment gross margin of $179mm only 2% below our estimate. Distributions declared of $0.3125 were slightly above our $0.3115." The company tightened its EBIDA guidance to $800-$840 million from $800-$860 million as new hedges limit the upside potential. The DCF guidance for the full year was left unchanged in view of lower than forecasted maintenance capex and additional cash flows from the recent acquisition of Monarch. "Mgmt. continues to see opportunity in the SCOOP where breakeven production averages below $50/bbl which should partially offset decreased Bakken activity," the analysts stated. The DCF per LP Unit estimates for FY15 and FY16 have been raised from $1.33 to $1.35 and from $1.51 to $1.55, respectively.