Downgrade of the Day: Penntex Midstream Partners LP (PTXP)

Penntex Midstream Partners LP (NASDAQ:PTXP) received a stock rating downgrade from JP Morgan on Mar-30-16. In a note to investors, the firm issued a Neutral rating. The analysts previously had an Overweight rating on the stock.

Analysts have a consensus target price of $15.73 in the 12-month period. The price objective is 54.98% higher than the recent closing price of $10.15. The 52-week price range is $8.54-$20.14 and the company has a market capitalization of $406 million. Analysts covering the shares maintain a consensus Strong Buy rating, according to Zacks Investment Research. Zero analyst has rated the stock with a sell rating, 1 has assigned a hold rating, 2 says it’s a buy, and 7 have assigned a strong buy rating to the company.

Penntex Midstream Partners LP (PTXP) on February 25, 2016 reported fourth quarter 2015 financial and operational results and 2016 guidance.

Highlights for the Quarter Include:

• Average processing volumes of 301 MDth/d for the three months ending December 31, 2015


• Adjusted EBITDA of $12.8 million for the three months ending December 31, 2015


• Distributable cash flow of $11.0 million for the three months ending December 31, 2015


• Paid a distribution of $0.2750 per unit, or $1.10 per unit on an annualized basis, on February 12, 2016

Commenting on the results, Thomas F. Karam, Chairman and Chief Executive Officer, said, “We are pleased with our fourth quarter 2015 results and believe the Partnership’s strong balance sheet and contracts position us well during this very challenging environment.”

Fourth Quarter 2015 Results

Operating revenues for the three months ended December 31, 2015 were $19.1 million and total operating expenses were $11.9 million, resulting in operating income of $7.1 million. The Partnership reported net income of $5.3 million, or $0.17 per common unit. For the three months ended December 31, 2015, the Partnership generated Adjusted EBITDA of $12.8 million and distributable cash flow of $11.0 million.

Financial Position and Liquidity

As of December 31, 2015, the Partnership had $7.8 million in cash on hand. As of December 31, 2015, the Partnership’s total indebtedness was $157.9 million, including letters of credit outstanding, and the Partnership had an additional $98.5 million available under its revolving credit facility. The Partnership does not expect to incur significant additional borrowings under the facility during 2016.

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