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:
We started the process of determining a valid price forecast for DCP Midstream LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that DCP Midstream LP ranked in the 56th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for DCP, they are:
DCP Midstream LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 24.63% of US stocks with positive free cash flow.
DCP Midstream LP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.19. This coverage rate is greater than that of merely 19.7% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 16. This value is greater than 79.05% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DCP, try TCP, DHT, CCLP, PHX, and EOG.
In (somewhat) shocking news, four of the five members of the Colorado Oil and Gas Conservation Commission voiced support for a 2,000-foot setback for homes and schools, a large increase from current levels. The absolutely poor outlook for oil and gas in Colorado has been a persistent cause of selling...
Michael Boyd on Seeking Alpha | September 15, 2020
DENVER, Sept. 14, 2020 (GLOBE NEWSWIRE) -- Today, the World Economic Forum announced DCP Midstream (NYSE: DCP) is one of ten new additions to its Global Lighthouse Network, a community of world-leading companies that have succeeded in the adaptation of the Fourth Industrial Revolution at scale. Of the 54 total sites and companies with the World Economic Forum’s Lighthouse designation, DCP Midstream is one of only five companies in North America and is the only U.S.-based oil and gas company to receive this distinction for its technological innovation. Additionally, a select group of Lighthouse companies, including DCP, have been recognized as end-to-end (E2E) Lighthouses, because they have emerged as leaders in extending Fourth Industrial Revolution transformation through their value ch...
DENVER, Sept. 11, 2020 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE: DCP) announced that Wouter van Kempen, chairman, president, and chief executive officer and Sean O’Brien, group vice president and chief financial officer will conduct a series of one-on-one and small group meetings with investment community representatives at the NYSE Energy and Utilities Investor Access Day on September 16, 2020 via telephone conference. The materials used at this conference will be posted on the Investors section of DCP Midstream’s website at www.dcpmidstream.com on September 15, 2020. ABOUT DCP MIDSTREAM, LP DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and mark...
DENVER, Sept. 08, 2020 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE: DCP) announced that Wouter van Kempen, chairman, president, and chief executive officer and Sean O’Brien, group vice president and chief financial officer will conduct a series of one-on-one and small group meetings with investment community representatives at the Barclays 2020 CEO Energy Power Conference on September 9, 2020 via telephone conference. The materials used at this conference will be posted on the Investors section of DCP Midstream’s website at www.dcpmidstream.com on September 8, 2020. ABOUT DCP MIDSTREAM, LP DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and marketing ...
If you want a 15.3% yield without taking a lot of risk, sometimes you have to search off the beaten path. At Panick High Yield Report we specialize in finding undervalued high-yield issues that don't have much coverage elsewhere. Such is the case for the EnLink preferred stock. Numerous Seeking...
Richard Lejeune on Seeking Alpha | August 24, 2020