Discounted Cash Flow (DCF) Analysis Levered

BP Midstream Partners LP (BPMP)

$17.11

0.00 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 27.22 | 17.11 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	108.15	116.44	128.47	128.90	119	122.17	125.42	128.76	132.19	135.71
Revenue (%)
Operating Cash Flow	69.24	173.78	189.33	190.40	151.24	155.26	159.40	163.64	168	172.47
Operating Cash Flow (%)
Capital Expenditure	-2.26	-1.60	-1.08	-3.50	-2.09	-2.14	-2.20	-2.26	-2.32	-2.38
Capital Expenditure (%)
Free Cash Flow	66.98	172.18	188.25	186.90	149.15	153.12	157.20	161.38	165.68	170.09

Weighted Average Cost Of Capital

Share price	$ 17.11
Beta	1.056
Diluted Shares Outstanding	104.80
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	0.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.505
Total Debt	468
Total Equity	1,793.13
Total Capital	2,261.13
Debt Weighting	20.70
Equity Weighting	79.30
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	108.15	116.44	128.47	128.90	119	122.17	125.42	128.76	132.19	135.71
Operating Cash Flow	69.24	173.78	189.33	190.40	151.24	155.26	159.40	163.64	168	172.47
Capital Expenditure	-2.26	-1.60	-1.08	-3.50	-2.09	-2.14	-2.20	-2.26	-2.32	-2.38
Free Cash Flow	66.98	172.18	188.25	186.90	149.15	153.12	157.20	161.38	165.68	170.09
WACC
PV LFCF						143.21	137.51	132.03	126.77	121.73
SUM PV LFCF										661.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.92
Free cash flow (t + 1)	173.49
Terminal Value	3,526.24
Present Value of Terminal Value	2,523.58

Intrinsic Value

Enterprise Value	3,184.82
Net Debt	332
Equity Value	2,852.82
Shares Outstanding	104.80
Equity Value Per Share	27.22