Market Overview

UPDATE: Bank of America Lowers El Paso Pipeline's PO

Related EPB
Earnings Scheduled For October 15, 2014
Tennessee Gas Pipeline Closes Successful Open Season For North-to-South Transportation Capacity To Mexico

According to a research report published this morning, Bank of America has lowered El Paso Pipeline's (NYSE: EPB) PO from $33 to $31.

In the report, Bank of America said, "On 18 May 2012, EPB agreed to acquire the previously proposed drop-down from its general partner (GP), El Paso (EP) (see: Large potential drop-down, but that might be all for EPB). The transaction cost is estimated at $635mn (excluding $242mn of debt) and the acquired assets include the remaining 14% interest of Colorado Interstate Gas (CIG) it does not own and 100% of Cheyenne Plains Gas Pipeline (CPG). EPB expects the transaction to close concurrently with Kinder Morgan, Inc.'s (KMI) pending acquisition of EP expected on 24 May. EPB's unit price declined 5.7% on the news (vs. (2.5%) for the Alerian MLP index (AMZ)) driven by investor expectations for additional equity, in our view."

Bank of America maintains its Underperform rating on El Paso Pipeline, which closed Friday at $30.64.

Latest Ratings for EPB

Oct 2014JP MorganMaintainsNeutral
Aug 2014Morgan StanleyUpgradesUnderweightEqual-Weight
Aug 2014Goldman SachsUpgradesSellNeutral

View More Analyst Ratings for EPB
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Price Target Analyst Ratings


Related Articles (EPB)

View Comments and Join the Discussion!

Partner Center