Discounted Cash Flow (DCF) Analysis Levered
Hess Midstream LP (HESM)
$30.59
+0.30 (+0.99%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 712.70 | 848.30 | 1,091.90 | 1,203.80 | 1,275.20 | 1,478.98 | 1,715.33 | 1,989.45 | 2,307.37 | 2,676.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 466.90 | 470.70 | 641.70 | 795.50 | 861.10 | 926.96 | 1,075.09 | 1,246.90 | 1,446.16 | 1,677.26 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -241.90 | -306.40 | -301.10 | -163.20 | -238.20 | -384.16 | -445.55 | -516.75 | -599.33 | -695.11 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 225 | 164.30 | 340.60 | 632.30 | 622.90 | 542.80 | 629.54 | 730.14 | 846.83 | 982.15 |
Weighted Average Cost Of Capital
| Share price | $ 30.59 |
|---|---|
| Beta | 1.577 |
| Diluted Shares Outstanding | 41.40 |
| Cost of Debt | |
| Tax Rate | 4.11 |
| After-tax Cost of Debt | 4.96% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.794 |
| Total Debt | 2,885.60 |
| Total Equity | 1,266.43 |
| Total Capital | 4,152.03 |
| Debt Weighting | 69.50 |
| Equity Weighting | 30.50 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 712.70 | 848.30 | 1,091.90 | 1,203.80 | 1,275.20 | 1,478.98 | 1,715.33 | 1,989.45 | 2,307.37 | 2,676.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 466.90 | 470.70 | 641.70 | 795.50 | 861.10 | 926.96 | 1,075.09 | 1,246.90 | 1,446.16 | 1,677.26 |
| Capital Expenditure | -241.90 | -306.40 | -301.10 | -163.20 | -238.20 | -384.16 | -445.55 | -516.75 | -599.33 | -695.11 |
| Free Cash Flow | 225 | 164.30 | 340.60 | 632.30 | 622.90 | 542.80 | 629.54 | 730.14 | 846.83 | 982.15 |
| WACC | ||||||||||
| PV LFCF | 507.10 | 549.45 | 595.35 | 645.07 | 698.95 | |||||
| SUM PV LFCF | 2,995.93 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.04 |
| Free cash flow (t + 1) | 1,001.79 |
| Terminal Value | 19,876.88 |
| Present Value of Terminal Value | 14,145.48 |
Intrinsic Value
| Enterprise Value | 17,141.41 |
|---|---|
| Net Debt | 2,882.50 |
| Equity Value | 14,258.91 |
| Shares Outstanding | 41.40 |
| Equity Value Per Share | 344.42 |