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:
Below please find a table outlining a discounted cash flow forecast for BPMP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that BP Midstream Partners LP ranked in the 88th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of BP Midstream Partners LP, consider:
BP Midstream Partners LP's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 8.06% of tickers in our DCF set.
BPMP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 8.06% of tickers in our DCF set.
Relative to other stocks in its sector (Energy), BP Midstream Partners LP has a reliance on debt greater than merely 22.3% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PAGP, WTTR, PDS, PTEN, and CELP 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.
BP Midstream Partners ([[BPMP]] +0.7%) and Holly Energy Partners ([[HEP]] +0.8%) edge higher after J.P. Morgan upgrades shares, seeing favorable outlooks for these steady logistics assets, helped by refined product demand gradually recovering into 2021.JPM analyst Joseph Martoglio raises BPMP to Neutral from Underweight with a $14 price target, up...
Introduction After publishing my latest article on Shell Midstream Partners (SHLX), it feels timely to review one of their closest peers, BP Midstream Partners (BPMP) that as the name suggests is the recently formed midstream Master Limited Partnership for the British oil and gas supermajor, BP (BP). This Covid-19 downturn...
Daniel Thurecht on Seeking Alpha | August 19, 2020
Volumes on BP Midstream Partners LP onshore U.S. oil pipelines began to fall late in the first quarter as demand destruction caused by the coronavirus pandemic began to take hold, officials with the company said on Friday.