Western Gas Equity Partners LP (NYSE:WGP) a Buy: RBC Capital

In a research note issued to investors, Elvira Scotto at RBC Capital Reiterated their Buy rating on Western Gas Equity Partners LP (NYSE:WGP). The analyst placed a $69.00 price target on the stock which indicates a 10.51% upside to the last closing price. In the year following Scotto’s ratings, the stocks covered yield an average return of 12.10% according to TipRanks.com. In the past year 30 out of 40 recommendations or 75% were successful.

Western Gas Equity Partners LP (NYSE:WGP) shares opened the most recent trading session at 72.85 and at the time of writing the last Bid was at 71.24. In the current trading session the stock reached as high as 73.15 and dipped down to 71.14. Western Gas Partn, a NYSE listed company, has a current market cap of 8.478B and on average over the past 3 months has seen 410156 shares trade hands on a daily basis.

On a technical level the stock has a 50 Day Moving Average of 70.4147. Based on a recent trade, this puts the equity at +1.12% away from that average. In comparing the stock’s current level to its extended history, the stock is trading -10.79% away from it’s 52-week high of 79.81 and +18.49% away from the stock’s low point over the past 52 weeks, which was 60.09. On a consensus basis, analysts have a one year target price of 82.47. The company last reported earnings per share of 2.271.

The consensus analyst estimates according to First Call for the next quarter is 0.55. The current year EPS estimate on the stock is 2.21 and the EPS estimate for next year sits at 2.98. In looking at the fundamentals, WES has a P/E ratio of 32.10 and a price to book ratio of 3.44. The company’s Book Value is 21.20 and most recently reported EBITDA of 605.6M. The price compared to next year’s EPS estimate in the current year is 24.47.

Company Profile

Western Gas Equity Partners LP (WGP) is engaged in operating midstream energy assets. The Company through its subsidiary, Western Gas Partners, LP (WES), owns, operates, acquires and develops energy assets. WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for third-party producers and customers. WES’s assets are located in East, West and South Texas, the Rocky Mountains (Colorado, Utah and Wyoming), North-Central Pennsylvania and the Mid-Continent (Kansas and Oklahoma). Haley Gathering System is the Company’s project located in the Southern and Western Texas. The 118-mile Haley Gathering System provides gathering and dehydration services in Loving County, Texas and gathers a portion of Anadarko and third-party production from the Delaware Basin. Hugoton Gathering System is the Company’s Mid-Continent project.