UPDATE: Oppenheimer Initiates Coverage on ONEOK Partners LP on Fair Valuation

In a report published Wednesday, Oppenheimer analyst Bernard Colson initiated coverage on ONEOK Partners LP (NYSE: OKS) with a Perform rating.

In the report, Oppenheimer noted, “We initiate coverage of ONEOK Partners (OKS) with a Perform rating and do not assign a price target. We believe OKS has the most exposure to the Bakken NGL infrastructure buildout, and its assets are critical to the growing petrochemical industry. Fundamentals of OKS's key NGL businesses are mixed, with depressed NGL prices being offset by fee-based volume growth. Distribution growth is expected to continue at an attractive rate, driven by the start-up of new fee-based projects. While the recent equity issuance reduced leverage and satisfied 2013 equity needs, we believe OKS units are fairly valued at current levels.”

ONEOK Partners LP closed on Tuesday at $50.09.