Stifel analyst Selman Akyol initiated Western Gas Equity (WGP) with a Buy rating and a price target of $40, anticipating a "simplification transaction" with Western Gas Partners (WES) based on its higher yield. The analyst adds that the transaction would remove the Incentive Distribution Rights, or IDR, cash flows while also citing Western Gas Partners' exposure to the DJ and Permian Basins through its sponsorship arrangement with Anadarko (APC). Akyol further notes that his preference for investors is with Western Gas Partners based on its premium potential in a simplification deal.