BP Midstream Partners LP Common Units representing Limited Partner Interests (BPMP) Company Bio
BP Midstream Partners LP owns, operates, develops, and acquires pipelines and other midstream assets. The Company provides crude oil, natural gas, and refined products. BP Midstream Partners offers an onshore crude oil, refined, and diluent pipeline systems. The company is based in Houston, Texas.
BPMP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for BP Midstream Partners LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that BP Midstream Partners LP ranked in the 93th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for BP Midstream Partners LP ended up being:
BP Midstream Partners LP's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 14.24% of tickers in our DCF set.
BP Midstream Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 9.27% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ENB, APY, PAA, CPG, and NBLX can be thought of as valuation peers to BPMP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.