- Western Refining (WNR +7.9%) is one of the day's strongest energy gainers after Q4 earnings came in well ahead of estimates, and its Western Refining Logistics (WNRL +2.9%) and 38%-owned Northern Tier Energy (NTI +5.3%) also delivered upbeat Q4 results (I, II).
- Cowen analyst Sam Margolin reiterates an Outperform rating and $60 price target on WNRL, encouraged by management's affirmation that the MLP’s growth remained on track, including a 50% target for third party revenues, with projects slated to begin as far out as 2018.
- WNRL’s share price has lagged by a wide margin YTD, weighing on WNR’s valuation, but WNR is nearing completion of the Tex-New Mex pipeline, while the Bobcat pipeline remains on schedule; including potential dropdowns from NTI, Margolin sees $100M WNRL EBITDA growth by early 2016.