Monday, September 13, 2010

Barclays (NYSE:BCS) Maintains "Overweight" on Inergy L.P (Nasdaq:NRGY)

Barclays (NYSE:BCS) said they're maintaining their "Overweight" rating on Inergy L.P (Nasdaq:NRGY), saying the acquisition of Tres Palacios gas storage will significantly add to their working gas capacity.

"Purchase of Tres Palacios gas storage will double NRGY's position in the business increasing working gas capacity from 39.7 bcf to 78.1 bcf. Pro forma expectation is storage will represent 50% of EBITDA in FY 2012. Markham salt dome has significant expansion opportunity. Near term NRGY will have to contract the 3rd cavern which is just coming into service in a relatively soft market," said Barclays analyst.

Estimates for earnings per share for the full year were upped from $0.10 to $0.18 for 2010, and from $1.59 to $1.84 for the full year 2011.

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