Credit Suisse Lowers Price Target on Niska Gas Storage (NKA) from $12 to $9: Probability of a Distribution Cut is Increasing: NKA suggested that the current natural gas storage fundamental weakness is likely to persist for an extended period of time. Given that the company is not expecting a recovery anytime soon, NKA stated that its board of directors may consider a reduction or suspension in the distribution to common unitholders. In our view, this statement more explicitly opens the door to the possibility of a distribution cut. Were NKA to reduce its distribution it may be able to use the cash savings to accelerate debt reduction. However, important to note, any cut in the distribution to common unitholders would accrue arrearages. Our price target assumes the stock yields 15% and 0% distribution growth. At this juncture, we would suggest that the downside risk appears limited. Following NKA's $250mm goodwill write-down, we estimate NKA's tangible book value at $442mm or ~$6.50/unit. We are revising our 2012/2013 EPU estimates to ($2.37)/0.16 (from $0.36/($0.02). Furthermore, NKA is currently trading below $6,000 per Bcf, below the cost to develop most new capacity. That said, natural gas storage fundamentals are not expected to recover over the medium term, which remains a cause for concern.