Phillips 66 Partners LP Common Units representing limited partner interest in the Partnership (PSXP) Company Bio
Phillips 66 Partners LP operates, develops, and acquires crude oil, refined petroleum products, and natural gas liquids pipelines and terminals, as well as other transportation and midstream assets in the United States. The company was founded in 2013 and is based in Houston, Texas.
PSXP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PSXP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Phillips 66 Partners Lp ranked in the 26th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for PSXP, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 9.07; that's higher than 93.06% of US stocks in the Energy sector that have positive free cash flow.
Phillips 66 Partners Lp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 4.42% of tickers in our DCF set.
PSXP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 4.42% of tickers in our DCF set.
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 PSXP, try AROC, PBR, BKR, COG, and PBA.
Phillips 66 Partners ([[PSXP]] +1.4%) says Gray Oak Pipeline will launch an open season starting Sept. 1 to solicit shipper commitments for long-term crude oil transportation service from west Texas.Phillips says there will be new takeaway capacity from west Texas, and a new destination in Victoria County, Tex., which is...
Source: Fortune Note: The title is first line of a music hall song popular with British soldiers during the First World War. Tipperary is a town in southern Ireland, and the singer, an Irishman, wants to return there to see "the sweetest girl I know". It is still used as...
Phillips 66 Partners LP (NYSE: PSXP) announces second-quarter 2020 earnings of $255 million, or $1.05 per diluted common unit. Cash from operations was $215 million, and distributable cash flow was $218 million. Adjusted EBITDA was $269 million in the second quarter, compared with $321 million in the prior quarter.