DCP Midstream owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States. It operates through three segments: Natural Gas Services, natural gas liquids (NGL) Logistics, and Wholesale Propane Logistics. The company was founded in 2005 and is based in Denver, Colorado.
DCP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for DCP Midstream LP. To summarize, we found that DCP Midstream LP ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 429.17%. The most interesting components of our discounted cash flow analysis for DCP Midstream LP ended up being:
28% of the company's capital comes from equity, which is greater than only 13.36% of stocks in our cash flow based forecasting set.
DCP Midstream LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 23.47% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 15. This value is greater than 82.2% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of DCP Midstream LP? See ERA, SPN, SU, MMLP, and DKL.
In this article we will check out the progression of hedge fund sentiment towards DCP Midstream LP (NYSE:DCP) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and […]
Moody's Investors Service (Moody's) moved the outlook of DCP Midstream, LP's (DCP) to stable from positive and affirmed its existing ratings, including the Ba2 Corporate Family Rating (CFR) and B1 ratings on the preferred units. DCP's SGL-3 Speculative Grade Liquidity (SGL) rating is unchanged. Additionally, DCP Midstream Operating, LP's (DCP Midstream Operating) senior unsecured notes ratings were affirmed at Ba2 and the B1 rating on its junior subordinated notes was affirmed.
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DCP Midstream (NYSE: DCP) is a significant player in the North American midstream industry, but units of the MLP have been trading all over the place. You can imagine that times have been tough for DCP given the unprecedented collapse in oil prices. The company is a top natural gas liquid (NGL) producer, https://www.dcpmidstream.com/getattachment/Asset-Bundles/DCP-Midstream-%E2%80%93-Sand-Hills-Pipeline-(Joint-Venture/DCP-Midstream-Partners-Sand-Hills-Pipeline-factsheet.pdf.aspxgas processor, and energy logistics company with operations across nine states, including major basins like the Permian Basin, the Denver Julesburg-Basin, the Eagle Ford, and Mid-Continent.