Citi Reports Southern Union's Pursuit Of LNG Export License Adds New Angle

According to Citi, Southern Union Company's SUG pursuit of LNG export license adds a new angle, and it maintains it's Buy rating. Citi reported that SUG saw recurring EPS of $0.53 versus our $0.52 estimate and the Street at $0.56. “Slightly higher Distribution and G&P results offset lower than expected Transportation and Storage figures (mostly due to lower equity earnings – likely timing of AFUDC at FGT). Operationally the quarter seemed clean, however, SUG did mention that Q1'11 G&P EBIT would be negatively impacted (~$7mm) due to well freeze offs & weather in the Permian.” Southern Union closed yesterday at $28.52.