Clarkson Remains Positive on Golar LNG Partners LP Following Expected Acquisition of Golar Igloo

In a report published Friday, Clarkson Capital Markets analyst Matthew J. Phillips reiterated an Outperform rating and $38.00 price target on Golar LNG Partners LP GMLP. In the report, Clarkson Capital Markets noted, “The acquisition of the Golar Igloo from their parent, Golar LNG (Outperform Rated, $44 target, Analyst: Dur) had been previously identified, and was expected before the vessel begins service on a 5yr contract to Kuwait National Petroleum Company in March 2014. We estimate the vessel dayrate at ~$110,000/day (though spot trading could push this higher, see below), and is accretive by $0.10-0.12/unit (EBITDA multiple of ~9.5x) assuming ~$150mm in proceeds from the concurrent equity offering. The transaction value is in-line with our expectations, and we believe GMLP has solid distribution growth potential and strong unit coverage, underpinning our Outperform rating and $38 price target.” Golar LNG Partners LP closed on Thursday at $30.94.