Shell Midstream Partners, L.P. Common Units representing Limited Partner Interests (SHLX) Company Bio
Shell Midstream Partners LP operates, develops, and acquires pipelines and other midstream assets in the United States. The company owns interests in two crude oil pipeline systems and two refined products pipeline systems. The company was founded in 2014 and is based in Houston, Texas.
SHLX 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 Shell Midstream Partners LP. To summarize, we found that Shell Midstream Partners LP ranked in the 94th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3911%. As for the metrics that stood out in our discounted cash flow analysis of Shell Midstream Partners LP, consider:
Shell Midstream Partners LP's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 1.94% of tickers in our DCF set.
Shell Midstream Partners LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 16.22% of stocks in its sector (Energy).
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 SHLX, try ENBL, PBFX, THTI, ENB, and NEX.
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Shell Midstream Partners, L.P. (SHLX) (the “Partnership”) announces that the Board of Directors of its general partner declared a cash distribution of $0.4600 per limited partner unit for the first quarter of 2020. Please note that 100 percent of the Partnership’s distributions to foreign investors are attributable to income that is effectively connected with a U.S. trade or business. Accordingly, all of the Partnership’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable.