Intrinsic value of Mid-Con Energy Partners - MCEP

Previous Close

$0.94

  Intrinsic Value

$0.94

stock screener

  Rating & Target

hold

-1%

Previous close

$0.94

 
Intrinsic value

$0.94

 
Up/down potential

-1%

 
Rating

hold

We calculate the intrinsic value of MCEP 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

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.0

 

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, %
  -54.17
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  44
  70
  109
  163
  236
  333
  458
  614
  807
  1,038
  1,311
  1,628
  1,991
  2,400
  2,855
  3,357
  3,905
  4,498
  5,136
  5,817
  6,540
  7,304
  8,109
  8,953
  9,837
  10,761
  11,724
  12,727
  13,770
  14,855
  15,982
Variable operating expenses, $m
 
  136
  210
  314
  456
  643
  884
  1,187
  1,559
  2,006
  2,533
  3,146
  3,846
  4,636
  5,516
  6,486
  7,545
  8,691
  9,923
  11,238
  12,635
  14,111
  15,666
  17,298
  19,006
  20,790
  22,650
  24,588
  26,603
  28,699
  30,878
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
  61
  136
  210
  314
  456
  643
  884
  1,187
  1,559
  2,006
  2,533
  3,146
  3,846
  4,636
  5,516
  6,486
  7,545
  8,691
  9,923
  11,238
  12,635
  14,111
  15,666
  17,298
  19,006
  20,790
  22,650
  24,588
  26,603
  28,699
  30,878
Operating income, $m
  -17
  -66
  -101
  -152
  -220
  -310
  -427
  -573
  -752
  -968
  -1,222
  -1,518
  -1,855
  -2,236
  -2,661
  -3,129
  -3,640
  -4,192
  -4,787
  -5,421
  -6,095
  -6,807
  -7,557
  -8,344
  -9,168
  -10,029
  -10,927
  -11,861
  -12,834
  -13,845
  -14,896
EBITDA, $m
  6
  -29
  -45
  -67
  -97
  -136
  -187
  -251
  -330
  -425
  -537
  -666
  -815
  -982
  -1,168
  -1,374
  -1,598
  -1,841
  -2,102
  -2,380
  -2,676
  -2,989
  -3,318
  -3,664
  -4,026
  -4,404
  -4,798
  -5,208
  -5,635
  -6,079
  -6,541
Interest expense (income), $m
  6
  5
  9
  14
  22
  32
  45
  62
  84
  110
  142
  180
  223
  273
  330
  392
  461
  537
  618
  706
  800
  899
  1,005
  1,115
  1,232
  1,353
  1,481
  1,613
  1,751
  1,895
  2,044
Earnings before tax, $m
  -25
  -71
  -110
  -166
  -242
  -342
  -472
  -635
  -836
  -1,078
  -1,364
  -1,697
  -2,079
  -2,510
  -2,990
  -3,521
  -4,101
  -4,729
  -5,405
  -6,127
  -6,895
  -7,707
  -8,562
  -9,460
  -10,400
  -11,382
  -12,407
  -13,474
  -14,585
  -15,739
  -16,940
Tax expense, $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
  0
Net income, $m
  -25
  -71
  -110
  -166
  -242
  -342
  -472
  -635
  -836
  -1,078
  -1,364
  -1,697
  -2,079
  -2,510
  -2,990
  -3,521
  -4,101
  -4,729
  -5,405
  -6,127
  -6,895
  -7,707
  -8,562
  -9,460
  -10,400
  -11,382
  -12,407
  -13,474
  -14,585
  -15,739
  -16,940

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2
  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
  276
  437
  676
  1,010
  1,466
  2,068
  2,843
  3,817
  5,011
  6,448
  8,145
  10,114
  12,366
  14,905
  17,734
  20,851
  24,255
  27,940
  31,900
  36,128
  40,619
  45,366
  50,364
  55,610
  61,102
  66,837
  72,818
  79,047
  85,527
  92,266
  99,269
Adjusted assets (=assets-cash), $m
  274
  437
  676
  1,010
  1,466
  2,068
  2,843
  3,817
  5,011
  6,448
  8,145
  10,114
  12,366
  14,905
  17,734
  20,851
  24,255
  27,940
  31,900
  36,128
  40,619
  45,366
  50,364
  55,610
  61,102
  66,837
  72,818
  79,047
  85,527
  92,266
  99,269
Revenue / Adjusted assets
  0.161
  0.160
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
  0.161
Average production assets, $m
  276
  442
  682
  1,020
  1,481
  2,089
  2,872
  3,855
  5,061
  6,513
  8,226
  10,215
  12,489
  15,053
  17,910
  21,059
  24,497
  28,218
  32,217
  36,488
  41,023
  45,817
  50,866
  56,164
  61,710
  67,503
  73,543
  79,834
  86,379
  93,184
  100,257
Working capital, $m
  -1
  -5
  -7
  -11
  -16
  -23
  -31
  -42
  -55
  -71
  -89
  -111
  -135
  -163
  -194
  -228
  -266
  -306
  -349
  -396
  -445
  -497
  -551
  -609
  -669
  -732
  -797
  -865
  -936
  -1,010
  -1,087
Total debt, $m
  142
  240
  383
  583
  856
  1,217
  1,681
  2,264
  2,980
  3,841
  4,857
  6,036
  7,385
  8,906
  10,600
  12,468
  14,507
  16,714
  19,086
  21,619
  24,309
  27,152
  30,146
  33,289
  36,578
  40,014
  43,596
  47,327
  51,209
  55,245
  59,440
Total liabilities, $m
  165
  262
  405
  605
  878
  1,239
  1,703
  2,286
  3,002
  3,863
  4,879
  6,058
  7,407
  8,928
  10,622
  12,490
  14,529
  16,736
  19,108
  21,641
  24,331
  27,174
  30,168
  33,311
  36,600
  40,036
  43,618
  47,349
  51,231
  55,267
  59,462
Total equity, $m
  112
  175
  271
  405
  588
  829
  1,140
  1,530
  2,010
  2,586
  3,266
  4,056
  4,959
  5,977
  7,111
  8,361
  9,726
  11,204
  12,792
  14,487
  16,288
  18,192
  20,196
  22,300
  24,502
  26,802
  29,200
  31,698
  34,296
  36,998
  39,807
Total liabilities and equity, $m
  277
  437
  676
  1,010
  1,466
  2,068
  2,843
  3,816
  5,012
  6,449
  8,145
  10,114
  12,366
  14,905
  17,733
  20,851
  24,255
  27,940
  31,900
  36,128
  40,619
  45,366
  50,364
  55,611
  61,102
  66,838
  72,818
  79,047
  85,527
  92,265
  99,269
Debt-to-equity ratio
  1.268
  1.370
  1.410
  1.440
  1.460
  1.470
  1.470
  1.480
  1.480
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
  1.490
Adjusted equity ratio
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401
  0.401

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -25
  -71
  -110
  -166
  -242
  -342
  -472
  -635
  -836
  -1,078
  -1,364
  -1,697
  -2,079
  -2,510
  -2,990
  -3,521
  -4,101
  -4,729
  -5,405
  -6,127
  -6,895
  -7,707
  -8,562
  -9,460
  -10,400
  -11,382
  -12,407
  -13,474
  -14,585
  -15,739
  -16,940
Depreciation, amort., depletion, $m
  23
  37
  57
  85
  123
  174
  239
  321
  422
  543
  685
  851
  1,041
  1,254
  1,493
  1,755
  2,041
  2,352
  2,685
  3,041
  3,419
  3,818
  4,239
  4,680
  5,142
  5,625
  6,129
  6,653
  7,198
  7,765
  8,355
Funds from operations, $m
  48
  -34
  -53
  -81
  -118
  -168
  -232
  -314
  -414
  -535
  -679
  -846
  -1,038
  -1,255
  -1,498
  -1,766
  -2,059
  -2,378
  -2,720
  -3,087
  -3,476
  -3,889
  -4,323
  -4,780
  -5,258
  -5,757
  -6,278
  -6,821
  -7,386
  -7,974
  -8,585
Change in working capital, $m
  4
  -2
  -3
  -4
  -5
  -7
  -8
  -11
  -13
  -16
  -19
  -22
  -25
  -28
  -31
  -34
  -37
  -40
  -43
  -46
  -49
  -52
  -55
  -57
  -60
  -63
  -65
  -68
  -71
  -74
  -77
Cash from operations, $m
  44
  -32
  -51
  -77
  -113
  -161
  -224
  -303
  -401
  -519
  -660
  -825
  -1,013
  -1,227
  -1,467
  -1,732
  -2,022
  -2,337
  -2,677
  -3,040
  -3,427
  -3,837
  -4,268
  -4,722
  -5,198
  -5,694
  -6,213
  -6,753
  -7,315
  -7,900
  -8,508
Maintenance CAPEX, $m
  0
  -23
  -37
  -57
  -85
  -123
  -174
  -239
  -321
  -422
  -543
  -685
  -851
  -1,041
  -1,254
  -1,493
  -1,755
  -2,041
  -2,352
  -2,685
  -3,041
  -3,419
  -3,818
  -4,239
  -4,680
  -5,142
  -5,625
  -6,129
  -6,653
  -7,198
  -7,765
New CAPEX, $m
  -7
  -166
  -241
  -338
  -460
  -608
  -783
  -983
  -1,207
  -1,451
  -1,713
  -1,989
  -2,274
  -2,564
  -2,857
  -3,149
  -3,438
  -3,721
  -3,999
  -4,270
  -4,535
  -4,794
  -5,048
  -5,298
  -5,546
  -5,793
  -6,040
  -6,291
  -6,545
  -6,805
  -7,073
Cash from investing activities, $m
  -8
  -189
  -278
  -395
  -545
  -731
  -957
  -1,222
  -1,528
  -1,873
  -2,256
  -2,674
  -3,125
  -3,605
  -4,111
  -4,642
  -5,193
  -5,762
  -6,351
  -6,955
  -7,576
  -8,213
  -8,866
  -9,537
  -10,226
  -10,935
  -11,665
  -12,420
  -13,198
  -14,003
  -14,838
Free cash flow, $m
  36
  -221
  -328
  -472
  -658
  -893
  -1,181
  -1,525
  -1,929
  -2,393
  -2,916
  -3,499
  -4,138
  -4,833
  -5,578
  -6,373
  -7,215
  -8,100
  -9,028
  -9,996
  -11,003
  -12,049
  -13,135
  -14,259
  -15,424
  -16,630
  -17,879
  -19,172
  -20,513
  -21,904
  -23,347
Issuance/(repayment) of debt, $m
  -58
  98
  143
  201
  273
  361
  464
  583
  716
  861
  1,016
  1,180
  1,349
  1,521
  1,695
  1,868
  2,039
  2,207
  2,372
  2,533
  2,690
  2,843
  2,994
  3,142
  3,289
  3,436
  3,583
  3,731
  3,882
  4,036
  4,195
Issuance/(repurchase) of shares, $m
  25
  136
  206
  300
  424
  584
  782
  1,025
  1,315
  1,654
  2,045
  2,487
  2,982
  3,528
  4,125
  4,771
  5,466
  6,207
  6,993
  7,823
  8,696
  9,610
  10,566
  11,564
  12,602
  13,682
  14,805
  15,972
  17,183
  18,441
  19,748
Cash from financing (excl. dividends), $m  
  -34
  234
  349
  501
  697
  945
  1,246
  1,608
  2,031
  2,515
  3,061
  3,667
  4,331
  5,049
  5,820
  6,639
  7,505
  8,414
  9,365
  10,356
  11,386
  12,453
  13,560
  14,706
  15,891
  17,118
  18,388
  19,703
  21,065
  22,477
  23,943
Total cash flow (excl. dividends), $m
  2
  13
  20
  29
  39
  51
  66
  83
  102
  122
  144
  168
  192
  216
  241
  266
  290
  314
  337
  360
  382
  404
  426
  447
  468
  488
  509
  530
  552
  574
  596
Retained Cash Flow (-), $m
  19
  -136
  -206
  -300
  -424
  -584
  -782
  -1,025
  -1,315
  -1,654
  -2,045
  -2,487
  -2,982
  -3,528
  -4,125
  -4,771
  -5,466
  -6,207
  -6,993
  -7,823
  -8,696
  -9,610
  -10,566
  -11,564
  -12,602
  -13,682
  -14,805
  -15,972
  -17,183
  -18,441
  -19,748
Prev. year cash balance distribution, $m
 
  2
  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
 
  -121
  -186
  -271
  -385
  -532
  -716
  -942
  -1,213
  -1,532
  -1,900
  -2,319
  -2,790
  -3,312
  -3,884
  -4,506
  -5,176
  -5,893
  -6,656
  -7,463
  -8,313
  -9,206
  -10,141
  -11,117
  -12,134
  -13,194
  -14,296
  -15,441
  -16,631
  -17,868
  -19,152
Discount rate, %
 
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for distribution, $m
 
  -112
  -159
  -213
  -274
  -340
  -408
  -474
  -533
  -581
  -615
  -632
  -632
  -615
  -582
  -536
  -481
  -420
  -357
  -295
  -237
  -186
  -141
  -104
  -74
  -52
  -35
  -22
  -14
  -9
  -5
Current shareholders' claim on cash, %
  100
  36.1
  13.5
  5.2
  2.1
  0.9
  0.4
  0.2
  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

Mid-Con Energy Partners, LP is engaged in the ownership, acquisition, exploitation and development of producing oil and natural gas properties in North America, with a focus on enhanced oil recovery (EOR). The Company's properties are located in the Mid-Continent and Permian Basin regions of the United States in over five areas: Southern Oklahoma; Northeastern Oklahoma; parts of Oklahoma, Colorado and Texas within the Hugoton; Texas Gulf Coast, and Texas within the Eastern Shelf of the Permian. The Company operates approximately 100% of its properties, as calculated on a barrel of oil equivalent (Boe) basis, through its affiliate, Mid-Con Energy Operating, LLC (Mid-Con Energy Operating). The Company designs and manages the development, recompletion or work-over for all of the wells it operates and supervises operation and maintenance activities. Mid-Con Energy Operating provides the Company with management, administrative and operational services under a services agreement.

FINANCIAL RATIOS  of  Mid-Con Energy Partners (MCEP)

Valuation Ratios
P/E Ratio -1.1
Price to Sales 0.6
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow 0.6
Price to Free Cash Flow 0.8
Growth Rates
Sales Growth Rate -54.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -50%
Cap. Spend. - 3 Yr. Gr. Rate -20.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 126.8%
Total Debt to Equity 126.8%
Interest Coverage -3
Management Effectiveness
Return On Assets -6.3%
Ret/ On Assets - 3 Yr. Avg. -7%
Return On Total Capital -8.8%
Ret/ On T. Cap. - 3 Yr. Avg. -9.1%
Return On Equity -20.6%
Return On Equity - 3 Yr. Avg. -19.5%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 40.9%
Gross Margin - 3 Yr. Avg. 59%
EBITDA Margin 9.1%
EBITDA Margin - 3 Yr. Avg. -3.5%
Operating Margin -38.6%
Oper. Margin - 3 Yr. Avg. -36.6%
Pre-Tax Margin -56.8%
Pre-Tax Margin - 3 Yr. Avg. -46.5%
Net Profit Margin -56.8%
Net Profit Margin - 3 Yr. Avg. -46.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

MCEP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MCEP stock intrinsic value calculation we used $44 million for the last fiscal year's total revenue generated by Mid-Con Energy Partners. The default revenue input number comes from 2016 income statement of Mid-Con Energy Partners. 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 MCEP stock valuation model: a) initial revenue growth rate of 60% 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 7.7%, whose default value for MCEP is calculated based on our internal credit rating of Mid-Con Energy Partners, 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 Mid-Con Energy Partners.
    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 MCEP stock the variable cost ratio is equal to 193.2%.

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 MCEP 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 3.7% for Mid-Con Energy Partners.

Corporate tax rate of 27% is the nominal tax rate for Mid-Con Energy Partners. 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 MCEP 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 MCEP are equal to 627.3%.

Life of production assets of 12 years is the average useful life of capital assets used in Mid-Con Energy Partners 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 MCEP is equal to -6.8%. 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 - $112 million for Mid-Con Energy Partners - 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 29.941 million for Mid-Con Energy Partners 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 Mid-Con Energy Partners at the current share price and the inputted number of shares is $0.0 billion.

RELATED COMPANIES Price Int.Val. Rating
EVEP EV Energy Part 0.600 3.84  str.buy
PHX Panhandle Oil& 23.10 1.73  str.sell

COMPANY NEWS

▶ The 10 MLPs Most Correlated with Crude Oil   [Oct-11-17 05:48PM  Market Realist]
▶ These MLPs Lost the Most Last Week   [Oct-09-17 02:35PM  Market Realist]
▶ Alerian Index Series September 2017 Index Review   [Sep-08-17 08:30AM  PR Newswire]
▶ Mid-Con reports 2Q loss   [Aug-04-17 02:05AM  Associated Press]
▶ Mid-Con posts 1Q profit   [May-01-17 04:38PM  Associated Press]
▶ Mid-Con reports 4Q loss   [Feb-28-17 07:09PM  Associated Press]
Financial statements of MCEP
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.