El Paso Corporation's (EP) high-grade E&P assets and large inventory of pipeline projects offer significant value in the long run. The company benefits from hedging a substantial portion of its future production, which offers operating clarity and cash-flow visibility even when energy prices remain volatile.
We believe the competence of management and the company's access to financing will enable successful execution of El Paso's industry-leading pipeline backlog going forward. We upgrade our recommendation for EP shares to Outperform based on the company's announcement to split its business into two strong stand-alone entities, as well as its raised 2011 guidance.
We believe the separation will enable further balance sheet improvement and greater operational transparency for the new company. El Paso possesses a Zacks #1 Rank, indicating a Strong Buy.
EL PASO CORP (EP): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment