UPDATE: Citigroup Initiates Alon USA Partners at Neutral on Cash Distribution

Citigroup initiated coverage on Alon Partners

with a Neutral rating and a $20.00 price target. Citigroup commented, "ALDW represents a new breed of investment in the refining space. ALDW is a variable rate distribution master limited partnership (MLP). All available cash flows will be paid to unit holders with certain tax advantages when compared to C-corporations. … We estimate that ALDW can pay out ~$4.41 per unit in distributions in 2013 ($5.40 per unit for 12 months ending Sep, 30 2013) or a ~20% distribution yield (~24% NTM yield)." Alon USA Partners closed at $22.25 on Monday.