Discounted Cash Flow (DCF) Analysis Levered

Shell Midstream Partners, L.P. (SHLX)

$13.82

-0.13 (-0.93%)

All numbers are in Millions, Currency in USD

Stock DCF: 22.66 | 13.82 | 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	470.10	524.70	503	481	556	581.99	609.19	637.67	667.48	698.68
Revenue (%)
Operating Cash Flow	432.40	508.40	597	650	612	643.41	673.49	704.97	737.92	772.42
Operating Cash Flow (%)
Capital Expenditure	-58	-49.20	-38	-27	-11	-42.91	-44.91	-47.01	-49.21	-51.51
Capital Expenditure (%)
Free Cash Flow	374.40	459.20	559	623	601	600.51	628.58	657.96	688.71	720.91

Weighted Average Cost Of Capital

Share price	$ 13.82
Beta	1.367
Diluted Shares Outstanding	444.10
Cost of Debt
Tax Rate	2.11
After-tax Cost of Debt	3.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.181
Total Debt	2,719
Total Equity	6,137.46
Total Capital	8,856.46
Debt Weighting	30.70
Equity Weighting	69.30
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	470.10	524.70	503	481	556	581.99	609.19	637.67	667.48	698.68
Operating Cash Flow	432.40	508.40	597	650	612	643.41	673.49	704.97	737.92	772.42
Capital Expenditure	-58	-49.20	-38	-27	-11	-42.91	-44.91	-47.01	-49.21	-51.51
Free Cash Flow	374.40	459.20	559	623	601	600.51	628.58	657.96	688.71	720.91
WACC
PV LFCF						521.58	508.81	496.36	484.22	472.37
SUM PV LFCF										2,664.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.30
Free cash flow (t + 1)	735.33
Terminal Value	13,874.06
Present Value of Terminal Value	9,754.50

Intrinsic Value

Enterprise Value	12,419.12
Net Debt	2,358
Equity Value	10,061.12
Shares Outstanding	444.10
Equity Value Per Share	22.66