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:
Below please find a table outlining a discounted cash flow forecast for SHLX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Shell Midstream Partners LP ranked in the 93th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2987%. The most interesting components of our discounted cash flow analysis for Shell Midstream Partners LP ended up being:
43% of the company's capital comes from equity, which is greater than only 18.21% of stocks in our cash flow based forecasting set.
Shell Midstream Partners LP's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 1.89% 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 merely 19.75% 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 GLOP, PAA, ENB, BPMP, and TALO.