UPDATE: Citi Lowering Price Target On Constellation Energy Partners LLC (CEP)

Citi Investment Research is lowering its price target on shares of Constellation Energy Partners LLC CEP to $3.00 from $3.50, and it has a Hold rating on shares following earnings. In a note to investors, Citi writes, "CEP reported 1Q11 adjusted EBITDA of $13.4 million, compared to adjusted EBITDA of $14.9 million in the same period last year and our estimate of $14.8 million. The 10% year-over-year decline in adjusted EBITDA reflects lower production volumes due to a reduced capital program over the last 12 months (i.e. production decline of 11%). In addition, the variance between our estimate and 1Q11 results can be attributed mainly to lower than previously forecast production volumes as well as slightly lower than expected realized natural gas prices." Shares of CEP gained 7 cents yesterday to close at $2.58, a gain of 3%.