Citi Maintains Buy Rating On EP

El Paso Corp.

announced today that they will “develop their Eagle Ford position (170,000 net acres; 60% oily) without a partner,” Citi reports. “In our opinion, today's announcement will likely be viewed as an initial negative by the Street as a JV could have provided additional sources of capital to EP,” Citi writes. “That said, the company's conviction in the value of their acreage seems to solidify the stance that the Eagle Ford will be a major area of growth and focus for El Paso down the road, especially given the current commodity price environment. We maintain our Buy / High Risk (1H) rating and $17 price target pending additional analysis.” El Paso closed Wednesday at $17.30.