Oppenheimer Initiates Coverage On MLP's (BWP, EEP, EPB, EPD, ETP, MMP, OKS, PAA, RGNC, SEP)

Oppenheimer & Co. is initiating coverage on the master limited partnership (MLP) sector. In the report, Oppenheimer covers Boardwalk Pipeline Partners BWP, Enbridge Energy Partners EEP, El Paso Pipeline Partners EPB, Enterprise Products Partners EPD, Energy Transfer Partners ETP, Magellan Midstream Partners MMP, ONEOK Partners OKS, Plains All American Pipeline PAA, Regency Energy Partners RGNC, and Spectra Energy Partners SEP. It lists EPB, EPD, MMP, OKS, PAA and RGNC at Outperform and the others at Perform. With regards to Enterprise Products Partners, Oppenheimer writes, "We are initiating coverage of EPD, is the largest publicly traded MLP in the US, with an Outperform & $43 tgt. EPD's asset footprint allows it to participate in the build-out of the Haynesville, Barnett and Eagle Ford Shales. Bottom Line: We are buyers of EPD as we believe that it is positioned to benefit disproportionately from the trend toward more natural gas production & consumption." On its coverage of Plains All American Pipeline, Oppenheimer writes, "We are initiating coverage of Plains All American with an Outperform rating and $68 price target." Oppenheimer had some positive notes on El Paso Pipeline Partners. In the report, Oppenheimer writes, "We are initiating coverage of EPB, an owner of natural gas pipelines in the Rocky Mountain region and the southeastern US, with an Outperform and $39 tgt." Oppenheimer covers Magellan Midstream Partners, and in the report says, "We are initiating coverage on Magellan Midstream Partners, an MLP that transports, stores and distributes refined petroleum products, with an Outperform rating and $56 tgt given its relatively low risk profile, operating mostly fee-based refined products pipelines with little direct commodity price exposure." Oppenheimer was also positive on shares of Regency Energy Partners. In the research note, Oppenehimer says, "We are initiating coverage on RGNC, with an Outperform rating & 29 tgt. The company is increasing size, scale, diversification and financial strength to achieve investment grade credit ratings by the end of 2012."