Magellan Midstream Partners L.P. Limited Partnership (MMP) Company Bio
Magellan Midstream Partners LP engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It operates in three segments: Refined Products, Crude Oil, and Marine Storage. The company was founded in 2000 and is based in Tulsa, Oklahoma.
MMP 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 Magellan Midstream Partners LP. To summarize, we found that Magellan Midstream Partners LP ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 40.83%. The most interesting components of our discounted cash flow analysis for Magellan Midstream Partners LP ended up being:
The company's compound free cash flow growth rate over the past 5.45 years comes in at -0.05%; that's greater than only 19.28% of US stocks we're applying DCF forecasting to.
Magellan Midstream Partners LP's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 5.62% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 13.65% of stocks in its sector (Energy).
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 Magellan Midstream Partners LP? See NOV, PBR, VLO, BTE, and FET.
Magellan Midstream Partners (MMP) has plunged 46% this year due to the coronavirus crisis. The stock price has been hit by the indiscriminate sell-off of the entire energy sector, but Magellan is one of the most resilient energy companies, thanks to its rock-solid business model. As a result, the company...
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TULSA, Okla., Sept. 3, 2020 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that Michael Mears, chief executive officer, is scheduled to participate in a question and answer session about Magellan at the Barclays CEO Energy-Power Conference at 4:25 p.m….
As you probably saw this morning, our second quarter results exceeded our expectations due to a number of favorable items, including additional product overages, higher than expected commodity prices and lower operating expenses. Then I'll be back to discuss our latest outlook for 2020 before opening the call for your questions.
Magellan Midstream Partners LP said on Thursday its refined products pipeline volumes are expected to decline in the second half of this year as fuel demand remains depressed due to the pandemic. Global oil demand plunged by about 30% in April as coronavirus-related lockdowns restricted travel worldwide and sent oil prices crashing. Average base refined products pipeline volumes is expected to fall 6% for gasoline, 12% for distillate and 40% for aviation fuel compared to the second half of 2019, excluding the impact of expansion projects, Magellan said.