UPDATE: Citigroup Cuts PT to $68 on EV Energy Partners on Natural Gas Pricing

Citigroup reiterated EV Energy Partners

at Buy but reduced the price target from $68.50 to $68.00. Citigroup noted, "The change to our target price primarily reflects the downward adjustment to our natural gas price assumption. Our TP assumes: 1) $25.50/unit for the base assets, and 2) $42.50/unit for the Utica Shale. We value the base business by applying a 8.5x EV/EBITDA multiple to our adjusted EBITDA forecast of $249.4 million (i.e. adj. for GP int.). We then add $42.50/unit for our estimated value of the Utica Shale assets. Our valuation of EVEP's Utica Shale position, assumes applying a blended value of $9,000 per acre for its entire acreage." EV Energy Partners closed at $58.74 on Tuesday.