Intrinsic value of EP Energy Cl A - EPE

Previous Close

$2.31

  Intrinsic Value

$0.60

stock screener

  Rating & Target

str. sell

-74%

Previous close

$2.31

 
Intrinsic value

$0.60

 
Up/down potential

-74%

 
Rating

str. sell

We calculate the intrinsic value of EPE stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -59.80
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  767
  782
  800
  821
  844
  870
  898
  928
  961
  997
  1,035
  1,076
  1,120
  1,166
  1,216
  1,268
  1,324
  1,383
  1,445
  1,511
  1,580
  1,653
  1,730
  1,812
  1,898
  1,988
  2,083
  2,183
  2,289
  2,399
  2,516
Variable operating expenses, $m
 
  2,421
  2,476
  2,540
  2,611
  2,690
  2,777
  2,872
  2,974
  3,085
  3,203
  3,330
  3,465
  3,609
  3,762
  3,924
  4,096
  4,278
  4,470
  4,674
  4,888
  5,115
  5,354
  5,606
  5,871
  6,151
  6,445
  6,755
  7,081
  7,424
  7,784
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  481
  2,421
  2,476
  2,540
  2,611
  2,690
  2,777
  2,872
  2,974
  3,085
  3,203
  3,330
  3,465
  3,609
  3,762
  3,924
  4,096
  4,278
  4,470
  4,674
  4,888
  5,115
  5,354
  5,606
  5,871
  6,151
  6,445
  6,755
  7,081
  7,424
  7,784
Operating income, $m
  286
  -1,638
  -1,676
  -1,719
  -1,767
  -1,821
  -1,880
  -1,944
  -2,013
  -2,088
  -2,168
  -2,253
  -2,345
  -2,442
  -2,546
  -2,656
  -2,772
  -2,895
  -3,025
  -3,163
  -3,308
  -3,462
  -3,624
  -3,794
  -3,974
  -4,163
  -4,362
  -4,572
  -4,792
  -5,024
  -5,268
EBITDA, $m
  748
  -1,169
  -1,196
  -1,227
  -1,261
  -1,299
  -1,341
  -1,387
  -1,436
  -1,490
  -1,547
  -1,608
  -1,673
  -1,743
  -1,817
  -1,895
  -1,978
  -2,066
  -2,159
  -2,257
  -2,361
  -2,470
  -2,586
  -2,707
  -2,835
  -2,970
  -3,113
  -3,262
  -3,420
  -3,585
  -3,759
Interest expense (income), $m
  0
  133
  135
  139
  143
  147
  152
  157
  163
  169
  176
  183
  191
  199
  208
  217
  227
  238
  249
  261
  273
  286
  300
  315
  330
  346
  363
  381
  400
  420
  441
Earnings before tax, $m
  -26
  -1,771
  -1,811
  -1,858
  -1,910
  -1,968
  -2,031
  -2,101
  -2,176
  -2,257
  -2,344
  -2,437
  -2,536
  -2,641
  -2,754
  -2,873
  -2,999
  -3,133
  -3,274
  -3,424
  -3,582
  -3,748
  -3,924
  -4,109
  -4,304
  -4,509
  -4,725
  -4,953
  -5,193
  -5,445
  -5,710
Tax expense, $m
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -27
  -1,771
  -1,811
  -1,858
  -1,910
  -1,968
  -2,031
  -2,101
  -2,176
  -2,257
  -2,344
  -2,437
  -2,536
  -2,641
  -2,754
  -2,873
  -2,999
  -3,133
  -3,274
  -3,424
  -3,582
  -3,748
  -3,924
  -4,109
  -4,304
  -4,509
  -4,725
  -4,953
  -5,193
  -5,445
  -5,710

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  20
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,761
  4,829
  4,940
  5,067
  5,210
  5,368
  5,541
  5,730
  5,934
  6,154
  6,390
  6,643
  6,913
  7,200
  7,505
  7,828
  8,172
  8,535
  8,919
  9,325
  9,753
  10,205
  10,682
  11,184
  11,714
  12,271
  12,859
  13,477
  14,127
  14,811
  15,531
Adjusted assets (=assets-cash), $m
  4,741
  4,829
  4,940
  5,067
  5,210
  5,368
  5,541
  5,730
  5,934
  6,154
  6,390
  6,643
  6,913
  7,200
  7,505
  7,828
  8,172
  8,535
  8,919
  9,325
  9,753
  10,205
  10,682
  11,184
  11,714
  12,271
  12,859
  13,477
  14,127
  14,811
  15,531
Revenue / Adjusted assets
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
  0.162
Average production assets, $m
  4,463
  4,552
  4,656
  4,776
  4,910
  5,059
  5,223
  5,400
  5,593
  5,800
  6,023
  6,261
  6,515
  6,786
  7,073
  7,378
  7,702
  8,044
  8,406
  8,789
  9,192
  9,618
  10,068
  10,541
  11,040
  11,566
  12,119
  12,702
  13,315
  13,960
  14,638
Working capital, $m
  -73
  -95
  -97
  -99
  -102
  -105
  -109
  -112
  -116
  -121
  -125
  -130
  -136
  -141
  -147
  -153
  -160
  -167
  -175
  -183
  -191
  -200
  -209
  -219
  -230
  -241
  -252
  -264
  -277
  -290
  -304
Total debt, $m
  3,789
  3,864
  3,962
  4,073
  4,198
  4,336
  4,488
  4,653
  4,832
  5,025
  5,232
  5,453
  5,689
  5,941
  6,208
  6,492
  6,792
  7,110
  7,447
  7,802
  8,178
  8,574
  8,991
  9,431
  9,895
  10,384
  10,898
  11,439
  12,009
  12,609
  13,239
Total liabilities, $m
  4,155
  4,230
  4,328
  4,439
  4,564
  4,702
  4,854
  5,019
  5,198
  5,391
  5,598
  5,819
  6,055
  6,307
  6,574
  6,858
  7,158
  7,476
  7,813
  8,168
  8,544
  8,940
  9,357
  9,797
  10,261
  10,750
  11,264
  11,805
  12,375
  12,975
  13,605
Total equity, $m
  606
  599
  613
  628
  646
  666
  687
  710
  736
  763
  792
  824
  857
  893
  931
  971
  1,013
  1,058
  1,106
  1,156
  1,209
  1,265
  1,325
  1,387
  1,453
  1,522
  1,594
  1,671
  1,752
  1,837
  1,926
Total liabilities and equity, $m
  4,761
  4,829
  4,941
  5,067
  5,210
  5,368
  5,541
  5,729
  5,934
  6,154
  6,390
  6,643
  6,912
  7,200
  7,505
  7,829
  8,171
  8,534
  8,919
  9,324
  9,753
  10,205
  10,682
  11,184
  11,714
  12,272
  12,858
  13,476
  14,127
  14,812
  15,531
Debt-to-equity ratio
  6.252
  6.450
  6.470
  6.480
  6.500
  6.510
  6.530
  6.550
  6.570
  6.580
  6.600
  6.620
  6.640
  6.650
  6.670
  6.690
  6.700
  6.720
  6.730
  6.750
  6.760
  6.780
  6.790
  6.800
  6.810
  6.820
  6.830
  6.850
  6.860
  6.870
  6.870
Adjusted equity ratio
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124
  0.124

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -27
  -1,771
  -1,811
  -1,858
  -1,910
  -1,968
  -2,031
  -2,101
  -2,176
  -2,257
  -2,344
  -2,437
  -2,536
  -2,641
  -2,754
  -2,873
  -2,999
  -3,133
  -3,274
  -3,424
  -3,582
  -3,748
  -3,924
  -4,109
  -4,304
  -4,509
  -4,725
  -4,953
  -5,193
  -5,445
  -5,710
Depreciation, amort., depletion, $m
  462
  469
  480
  492
  506
  522
  538
  557
  577
  598
  621
  645
  672
  700
  729
  761
  794
  829
  867
  906
  948
  992
  1,038
  1,087
  1,138
  1,192
  1,249
  1,309
  1,373
  1,439
  1,509
Funds from operations, $m
  1,557
  -1,302
  -1,331
  -1,365
  -1,404
  -1,446
  -1,493
  -1,544
  -1,599
  -1,659
  -1,723
  -1,791
  -1,864
  -1,942
  -2,025
  -2,112
  -2,205
  -2,304
  -2,408
  -2,518
  -2,634
  -2,756
  -2,886
  -3,022
  -3,166
  -3,317
  -3,476
  -3,644
  -3,820
  -4,006
  -4,201
Change in working capital, $m
  773
  -2
  -2
  -2
  -3
  -3
  -3
  -4
  -4
  -4
  -5
  -5
  -5
  -6
  -6
  -6
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -10
  -10
  -11
  -12
  -12
  -13
  -13
  -14
Cash from operations, $m
  784
  -1,300
  -1,329
  -1,363
  -1,401
  -1,443
  -1,490
  -1,540
  -1,595
  -1,654
  -1,718
  -1,786
  -1,859
  -1,936
  -2,019
  -2,106
  -2,199
  -2,297
  -2,400
  -2,510
  -2,625
  -2,748
  -2,876
  -3,012
  -3,155
  -3,306
  -3,464
  -3,631
  -3,807
  -3,992
  -4,187
Maintenance CAPEX, $m
  0
  -460
  -469
  -480
  -492
  -506
  -522
  -538
  -557
  -577
  -598
  -621
  -645
  -672
  -700
  -729
  -761
  -794
  -829
  -867
  -906
  -948
  -992
  -1,038
  -1,087
  -1,138
  -1,192
  -1,249
  -1,309
  -1,373
  -1,439
New CAPEX, $m
  -533
  -89
  -105
  -120
  -134
  -149
  -163
  -178
  -193
  -207
  -223
  -238
  -254
  -271
  -288
  -305
  -323
  -342
  -362
  -382
  -404
  -426
  -449
  -474
  -499
  -526
  -553
  -582
  -613
  -645
  -678
Cash from investing activities, $m
  -144
  -549
  -574
  -600
  -626
  -655
  -685
  -716
  -750
  -784
  -821
  -859
  -899
  -943
  -988
  -1,034
  -1,084
  -1,136
  -1,191
  -1,249
  -1,310
  -1,374
  -1,441
  -1,512
  -1,586
  -1,664
  -1,745
  -1,831
  -1,922
  -2,018
  -2,117
Free cash flow, $m
  640
  -1,849
  -1,903
  -1,962
  -2,028
  -2,098
  -2,175
  -2,257
  -2,345
  -2,439
  -2,539
  -2,645
  -2,758
  -2,878
  -3,006
  -3,140
  -3,283
  -3,433
  -3,591
  -3,759
  -3,935
  -4,121
  -4,317
  -4,524
  -4,741
  -4,970
  -5,210
  -5,463
  -5,730
  -6,010
  -6,304
Issuance/(repayment) of debt, $m
  -609
  75
  97
  111
  125
  138
  152
  165
  179
  193
  207
  221
  236
  251
  267
  284
  301
  318
  336
  355
  375
  396
  418
  440
  464
  489
  514
  541
  570
  599
  630
Issuance/(repurchase) of shares, $m
  0
  1,784
  1,825
  1,873
  1,928
  1,987
  2,053
  2,124
  2,201
  2,284
  2,373
  2,468
  2,569
  2,677
  2,792
  2,913
  3,042
  3,178
  3,322
  3,474
  3,635
  3,804
  3,983
  4,171
  4,369
  4,578
  4,798
  5,030
  5,273
  5,529
  5,799
Cash from financing (excl. dividends), $m  
  -646
  1,859
  1,922
  1,984
  2,053
  2,125
  2,205
  2,289
  2,380
  2,477
  2,580
  2,689
  2,805
  2,928
  3,059
  3,197
  3,343
  3,496
  3,658
  3,829
  4,010
  4,200
  4,401
  4,611
  4,833
  5,067
  5,312
  5,571
  5,843
  6,128
  6,429
Total cash flow (excl. dividends), $m
  -6
  10
  19
  22
  25
  28
  30
  33
  36
  38
  41
  44
  47
  50
  53
  56
  60
  63
  67
  71
  75
  79
  83
  88
  92
  97
  102
  108
  113
  119
  125
Retained Cash Flow (-), $m
  13
  -1,784
  -1,825
  -1,873
  -1,928
  -1,987
  -2,053
  -2,124
  -2,201
  -2,284
  -2,373
  -2,468
  -2,569
  -2,677
  -2,792
  -2,913
  -3,042
  -3,178
  -3,322
  -3,474
  -3,635
  -3,804
  -3,983
  -4,171
  -4,369
  -4,578
  -4,798
  -5,030
  -5,273
  -5,529
  -5,799
Prev. year cash balance distribution, $m
 
  20
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -1,754
  -1,806
  -1,851
  -1,903
  -1,960
  -2,023
  -2,091
  -2,166
  -2,246
  -2,332
  -2,424
  -2,522
  -2,627
  -2,738
  -2,857
  -2,982
  -3,115
  -3,255
  -3,403
  -3,560
  -3,725
  -3,900
  -4,083
  -4,277
  -4,481
  -4,696
  -4,922
  -5,160
  -5,410
  -5,674
Discount rate, %
 
  14.00
  14.70
  15.44
  16.21
  17.02
  17.87
  18.76
  19.70
  20.68
  21.72
  22.80
  23.94
  25.14
  26.40
  27.72
  29.10
  30.56
  32.09
  33.69
  35.38
  37.15
  39.00
  40.95
  43.00
  45.15
  47.41
  49.78
  52.27
  54.88
  57.63
PV of cash for distribution, $m
 
  -1,538
  -1,372
  -1,204
  -1,043
  -893
  -754
  -628
  -514
  -414
  -327
  -253
  -192
  -142
  -103
  -73
  -50
  -33
  -22
  -14
  -8
  -5
  -3
  -2
  -1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  24.0
  5.8
  1.4
  0.3
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

EP Energy Corporation (EP Energy) is an independent exploration and production company. The Company is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The Company operates through a base of producing assets. It is involved in the development of its drilling inventory located in three areas: the Eagle Ford Shale (South Texas), the Wolfcamp Shale (Permian Basin in West Texas) and the Altamont Field in the Uinta Basin (Northeastern Utah). As of December 31, 2016, in its operating areas, the Company had identified 5,156 drilling locations (including 639 drilling locations to which it has attributed proved undeveloped reserves). As of December 31, 2016, the Company had proved reserves of 432.4 million barrels of oil equivalent (MMBoe) and an average net daily production of 87,641 barrel of oil equivalent per day (Boe/d).

FINANCIAL RATIOS  of  EP Energy Cl A (EPE)

Valuation Ratios
P/E Ratio -21.5
Price to Sales 0.8
Price to Book 1
Price to Tangible Book
Price to Cash Flow 0.7
Price to Free Cash Flow 2.3
Growth Rates
Sales Growth Rate -59.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -62.8%
Cap. Spend. - 3 Yr. Gr. Rate -22.6%
Financial Strength
Quick Ratio NaN
Current Ratio 0.2
LT Debt to Equity 625.2%
Total Debt to Equity 625.2%
Interest Coverage 0
Management Effectiveness
Return On Assets -0.5%
Ret/ On Assets - 3 Yr. Avg. -13.2%
Return On Total Capital -0.5%
Ret/ On T. Cap. - 3 Yr. Avg. -14.6%
Return On Equity -4.4%
Return On Equity - 3 Yr. Avg. -45.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 57.2%
Gross Margin - 3 Yr. Avg. 73.7%
EBITDA Margin 56.8%
EBITDA Margin - 3 Yr. Avg. -17.4%
Operating Margin 37.3%
Oper. Margin - 3 Yr. Avg. -41.4%
Pre-Tax Margin -3.4%
Pre-Tax Margin - 3 Yr. Avg. -64.2%
Net Profit Margin -3.5%
Net Profit Margin - 3 Yr. Avg. -58.8%
Effective Tax Rate -3.8%
Eff/ Tax Rate - 3 Yr. Avg. 15.6%
Payout Ratio 0%

EPE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EPE stock intrinsic value calculation we used $767 million for the last fiscal year's total revenue generated by EP Energy Cl A. The default revenue input number comes from 2016 income statement of EP Energy Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EPE stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 14%, whose default value for EPE is calculated based on our internal credit rating of EP Energy Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of EP Energy Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EPE stock the variable cost ratio is equal to 309.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for EPE stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for EP Energy Cl A.

Corporate tax rate of 27% is the nominal tax rate for EP Energy Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EPE stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EPE are equal to 581.8%.

Life of production assets of 9.7 years is the average useful life of capital assets used in EP Energy Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EPE is equal to -12.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $606 million for EP Energy Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 252.377 million for EP Energy Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of EP Energy Cl A at the current share price and the inputted number of shares is $0.6 billion.

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COMPANY NEWS

▶ The Second-Worst-Performing Upstream Stock Year-to-Date   [Dec-07-17 10:30AM  Market Realist]
▶ Southwestern Energy names new COO   [Dec-04-17 06:20PM  American City Business Journals]
▶ These Stocks Were the Biggest Upstream Losers   [09:40AM  Market Realist]
▶ Your Upstream Losers This Week: EXXI, REN, EPE, CPE, and UNT   [Nov-15-17 02:40PM  Market Realist]
▶ Breaking Down EP Energy Corporations (EPE) Ownership Structure   [Nov-09-17 04:25PM  Simply Wall St.]
▶ ETFs with exposure to EP Energy Corp. : November 8, 2017   [Nov-08-17 06:02PM  Capital Cube]
▶ EP Energy Corp. Class A to Host Earnings Call   [Nov-02-17 09:25AM  ACCESSWIRE]
▶ EP Energy reports 3Q loss   [05:47AM  Associated Press]
▶ Is It The Right Time To Buy EP Energy Corporation (EPE)?   [Oct-20-17 01:56PM  Simply Wall St.]
▶ Is There Now An Opportunity In EP Energy Corporation (EPE)?   [Sep-13-17 09:49PM  Simply Wall St.]
▶ ETFs with exposure to EP Energy Corp. : September 7, 2017   [Sep-07-17 01:04PM  Capital Cube]
▶ How Encana Stock Has Performed This Year   [Aug-16-17 03:25PM  Market Realist]
▶ Andeavor Reports Second Quarter 2017 Results   [Aug-08-17 04:41PM  GlobeNewswire]
▶ EP Energy reports 2Q loss   [Aug-04-17 02:50AM  Associated Press]
▶ ETFs with exposure to EP Energy Corp. : July 24, 2017   [Jul-24-17 03:44PM  Capital Cube]
▶ ETFs with exposure to EP Energy Corp. : July 14, 2017   [Jul-14-17 02:14PM  Capital Cube]
▶ ETFs with exposure to EP Energy Corp. : June 15, 2017   [Jun-15-17 01:48PM  Capital Cube]
▶ EP Energy, Tesoro Form Drilling JV in Utah's Uinta Basin   [May-23-17 08:00PM  Rigzone.com]
▶ ETFs with exposure to EP Energy Corp. : May 22, 2017   [May-22-17 01:36PM  Capital Cube]
▶ ETFs with exposure to EP Energy Corp. : May 11, 2017   [May-11-17 04:36PM  Capital Cube]
▶ EP Energy reports 1Q loss   [May-05-17 10:18AM  Associated Press]
▶ EP Energy Corp. Value Analysis (NYSE:EPE) : May 2, 2017   [May-02-17 05:15PM  Capital Cube]
▶ 2 Stocks to Avoid (and 1 to Buy)   [12:00PM  Motley Fool]
▶ Betting on Oil's Turnaround? Here's Where to Put Your Money   [Apr-24-17 07:47AM  TheStreet.com]
▶ ETFs with exposure to EP Energy Corp. : April 5, 2017   [Apr-05-17 04:42PM  Capital Cube]
▶ Billionaires Love These 3 Stocks -- but Should You?   [Apr-02-17 10:17AM  Motley Fool]
▶ EP Energy reports 4Q loss   [04:44PM  Associated Press]
Financial statements of EPE
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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