Wunderlich Securities Revises Estimates for MLP Spectra Energy Partners, LP


Wunderlich Securities revised its estimates for Master Limited Partnership (MLP) Spectra Energy Partners, LP (SEP:NYSE) on October 5. The largest changes pertain to the impact that the Big Sandy acquisition will have on EBITDA.

Wunderlich has revised its estimate for the impact of the Big Sandy acquisition on earnings. The MLP expects that the acquisition will not make a significant alteration to the 2011 cash available for distribution. In 2012, the acquisition should add roughly $35 million to EBITDA. This estimate includes new contract revenues that will contribute $8.5 million per year starting January 1, 2012.

Wunderlich announced that it is lowering Spectra's 2011 EBITDA prediction to C$246 million from C$263 million and raising its EBITDA estimate for 2012 to C$283 million from C$280 million. The MLP's estimated 2011 discounted cash flow (DCF) is being reduced to C$212 million from C$226 million and their 2012 DCF is being raised to $244 million from $235 million.

Spectra Energy Partners, LP opened at C$28.39 on October 5 and hit a 52-week high/low of C$36.31 and C$25.53, respectively.