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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorReiterationAnalyst RatingsClarkson Capital MarketsMatthew J. Phillips
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!