Exterran Partners LP - An Energy Play With 8% Yield And 15% EPS Growth

| About: Archrock Partners, (APLP)

With the recent run in equities, now more than ever investors need to evaluate their current positions and opportunities. Exterran Partners LP (EXLP), currently trading at $25.02, is an interesting long play yielding 8.2% having estimated earnings growth of 15% through 2014. EXLP was formed by Exterran Holdings (EXH) to provide natural gas operations services throughout the US. They most recently reported excellent earnings of 33 cents a share, blowing away estimates of 18 cents a share. Exterran looks to be in an excellent position to prosper over the next few years, given the expansion of energy production and fracking in the US. Below are a few metrics further supporting EXLP as a potential big winner in the energy space:

· Analysts expect FY 2013 EPS to come in at 93 cents a share and FY 2014 EPS at $1.11/share. The Street and Zacks currently have buy ratings and $29.00 price targets.

· The consensus price target for EXLP has been set at $29.00, with one analyst seeing upside to $39.00.

· 8.2% dividend yield exceeds 90% of its peers.

· Operating cash flow has more than doubled since 2009.

With the run in equities this year Exterran provides an excellent cushion of protection with its huge dividend, which has been increasing since 2008. The global energy supply is expected to grow by 40% over the next 20 years and Exterran is aligned for substantial growth. EXLP looks to be a strong income/growth play for the next 24 months given the current market environment.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in EXLP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.