Crestwood Equity Partners LP provides midstream solutions to customers in the crude oil, natural gas liquids (NGLs), and natural gas sectors of the energy industry in the United States. It operates through three segments: Gathering and Processing; Storage and Transportation; and NGL and Crude Services. The company was formerly known as Inergy L.P. and changed its name to Crestwood Equity Partners LP in October 2013. The company is based in Houston, Texas.
CEQP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CEQP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Crestwood Equity Partners LP ranked in the 59th 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 Crestwood Equity Partners LP ended up being:
34% of the company's capital comes from equity, which is greater than only 11.95% of stocks in our cash flow based forecasting set.
Crestwood Equity Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Energy), Crestwood Equity Partners LP has a reliance on debt greater than 66.73% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Foreword A reader of August 2019's high-yield, low priced dividend dog list said this is "dangerous advice". Hence, this information is to be used at your own risk. I have always advised that high dividends are a sure sign of high risk. Combine that signal with a low-price offer and...
Fredrik Arnold on Seeking Alpha | September 28, 2020
Introduction When heading into the second quarter of 2020 earnings season, I previously warned that the very high yielding Crestwood Equity Partners (CEQP) could possibly decide to reduce their 19% distribution yield imminently. Ultimately they chose the other path that I flagged as a possibility by keeping them unchanged; however,...
Daniel Thurecht on Seeking Alpha | September 4, 2020
HOUSTON--(BUSINESS WIRE)--Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood”) today reported its financial and operating results for the three months ended June 30, 2020. Second Quarter 2020 Highlights (1) Second quarter 2020 net loss of $24.3 million, compared to net income of $225.0 million in second quarter 2019 Second quarter 2020 Adjusted EBITDA of $127.8 million, an increase of 5% compared to $121.3 million in the second quarter 2019 Second quarter 2020 distributable cash flow to comm
Because prices have tumbled, dividend yields have skyrocketed, enabling investors to pick up some big-time payouts at bottom-of-the-barrel valuations. Three such opportunities are master limited partnerships Plains All American Pipeline (NYSE: PAA), Crestwood Equity Partners (NYSE: CEQP), and Magellan Midstream Partners (NYSE: MMP). Units of Plains All American have cratered about 55% this year and currently trade at around $8.
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