Hess Midstream Partners LP Common Limited Partner Interests (HESM) Company Bio
Hess Midstream Partners LP focuses on processing natural gas and fractionating natural gas liquids (NGLs) in the United States. It also intends to engage in terminaling and loading crude oil and NGLs; transporting crude oil through rail cars; and storing and terminaling propane. Hess Midstream Partners GP LLC is the general partner of the company. The company was founded in 2014 and is based in Houston, Texas.
HESM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HESM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hess Midstream LP ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 363.67%. As for the metrics that stood out in our discounted cash flow analysis of Hess Midstream LP, consider:
Interest coverage, a measure of earnings relative to interest payments, is 1.29 -- which is good for besting 64.73% of its peer stocks (US stocks in the Energy sector with positive cash flow).
14% of the company's capital comes from equity, which is greater than merely 4.56% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 86% of the company's capital is sourced from debt; this is greater than 95.41% of the free cash flow producing stocks we're observing.
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 HESM, try HMLP, CAPL, PAA, MMLP, and SGU.
Mr. Market focuses on the here and now. Maybe the next platform due in 2022 is too far away for Mr. Market to consider right now. But Hess Corporation (HES) has an impressive array of future benefits from the partnership with Exxon Mobil (XOM). The Guyana cash flow has finally...