Intrinsic value of Western Gas Partners - WES

Previous Close

$47.81

  Intrinsic Value

$5.51

stock screener

  Rating & Target

str. sell

-88%

Previous close

$47.81

 
Intrinsic value

$5.51

 
Up/down potential

-88%

 
Rating

str. sell

We calculate the intrinsic value of WES 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 7.9

 

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, %
  2.97
  22.40
  20.66
  19.09
  17.68
  16.42
  15.27
  14.25
  13.32
  12.49
  11.74
  11.07
  10.46
  9.91
  9.42
  8.98
  8.58
  8.22
  7.90
  7.61
  7.35
  7.12
  6.90
  6.71
  6.54
  6.39
  6.25
  6.12
  6.01
  5.91
  5.82
Revenue, $m
  1,804
  2,208
  2,664
  3,173
  3,734
  4,347
  5,011
  5,725
  6,488
  7,298
  8,155
  9,058
  10,005
  10,997
  12,033
  13,114
  14,239
  15,410
  16,628
  17,894
  19,209
  20,576
  21,996
  23,473
  25,009
  26,606
  28,269
  30,000
  31,804
  33,683
  35,644
Variable operating expenses, $m
 
  2,000
  2,405
  2,856
  3,353
  3,897
  4,486
  5,119
  5,795
  6,514
  7,274
  8,032
  8,873
  9,752
  10,671
  11,630
  12,628
  13,666
  14,746
  15,869
  17,035
  18,247
  19,507
  20,817
  22,178
  23,595
  25,070
  26,605
  28,204
  29,871
  31,610
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
  1,096
  2,000
  2,405
  2,856
  3,353
  3,897
  4,486
  5,119
  5,795
  6,514
  7,274
  8,032
  8,873
  9,752
  10,671
  11,630
  12,628
  13,666
  14,746
  15,869
  17,035
  18,247
  19,507
  20,817
  22,178
  23,595
  25,070
  26,605
  28,204
  29,871
  31,610
Operating income, $m
  708
  208
  260
  317
  381
  450
  525
  606
  692
  784
  881
  1,025
  1,132
  1,245
  1,362
  1,484
  1,611
  1,744
  1,882
  2,025
  2,174
  2,329
  2,489
  2,656
  2,830
  3,011
  3,199
  3,395
  3,599
  3,812
  4,034
EBITDA, $m
  981
  561
  677
  806
  949
  1,105
  1,274
  1,455
  1,649
  1,855
  2,073
  2,302
  2,543
  2,795
  3,058
  3,333
  3,619
  3,916
  4,226
  4,548
  4,882
  5,229
  5,590
  5,965
  6,356
  6,762
  7,184
  7,624
  8,083
  8,560
  9,058
Interest expense (income), $m
  106
  114
  145
  179
  217
  259
  305
  355
  409
  466
  527
  591
  659
  730
  804
  882
  963
  1,048
  1,136
  1,227
  1,322
  1,421
  1,523
  1,630
  1,741
  1,856
  1,976
  2,101
  2,231
  2,366
  2,507
Earnings before tax, $m
  611
  94
  115
  138
  164
  191
  220
  251
  284
  318
  354
  434
  474
  515
  558
  602
  648
  696
  746
  798
  852
  908
  966
  1,027
  1,090
  1,155
  1,223
  1,294
  1,369
  1,446
  1,527
Tax expense, $m
  9
  25
  31
  37
  44
  52
  59
  68
  77
  86
  96
  117
  128
  139
  151
  163
  175
  188
  201
  215
  230
  245
  261
  277
  294
  312
  330
  350
  370
  390
  412
Net income, $m
  591
  68
  84
  101
  120
  139
  161
  183
  207
  232
  259
  317
  346
  376
  407
  439
  473
  508
  545
  583
  622
  663
  705
  749
  795
  843
  893
  945
  999
  1,056
  1,115

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  358
  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
  7,733
  9,013
  10,875
  12,951
  15,241
  17,743
  20,454
  23,368
  26,481
  29,788
  33,286
  36,970
  40,837
  44,885
  49,115
  53,526
  58,119
  62,899
  67,870
  73,036
  78,404
  83,983
  89,781
  95,808
  102,076
  108,597
  115,383
  122,450
  129,811
  137,484
  145,485
Adjusted assets (=assets-cash), $m
  7,375
  9,013
  10,875
  12,951
  15,241
  17,743
  20,454
  23,368
  26,481
  29,788
  33,286
  36,970
  40,837
  44,885
  49,115
  53,526
  58,119
  62,899
  67,870
  73,036
  78,404
  83,983
  89,781
  95,808
  102,076
  108,597
  115,383
  122,450
  129,811
  137,484
  145,485
Revenue / Adjusted assets
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
Average production assets, $m
  5,773
  7,066
  8,526
  10,154
  11,949
  13,911
  16,036
  18,320
  20,761
  23,354
  26,096
  28,984
  32,016
  35,190
  38,506
  41,964
  45,566
  49,313
  53,210
  57,260
  61,469
  65,843
  70,388
  75,114
  80,028
  85,140
  90,460
  96,000
  101,772
  107,787
  114,060
Working capital, $m
  279
  -97
  -117
  -140
  -164
  -191
  -220
  -252
  -285
  -321
  -359
  -399
  -440
  -484
  -529
  -577
  -627
  -678
  -732
  -787
  -845
  -905
  -968
  -1,033
  -1,100
  -1,171
  -1,244
  -1,320
  -1,399
  -1,482
  -1,568
Total debt, $m
  3,091
  3,908
  4,834
  5,866
  7,004
  8,247
  9,594
  11,043
  12,590
  14,234
  15,972
  17,803
  19,725
  21,737
  23,839
  26,031
  28,314
  30,690
  33,160
  35,728
  38,396
  41,168
  44,050
  47,046
  50,161
  53,402
  56,774
  60,286
  63,945
  67,758
  71,735
Total liabilities, $m
  3,662
  4,479
  5,405
  6,437
  7,575
  8,818
  10,165
  11,614
  13,161
  14,805
  16,543
  18,374
  20,296
  22,308
  24,410
  26,602
  28,885
  31,261
  33,731
  36,299
  38,967
  41,739
  44,621
  47,617
  50,732
  53,973
  57,345
  60,857
  64,516
  68,329
  72,306
Total equity, $m
  4,071
  4,533
  5,470
  6,514
  7,666
  8,925
  10,288
  11,754
  13,320
  14,984
  16,743
  18,596
  20,541
  22,577
  24,705
  26,923
  29,234
  31,638
  34,138
  36,737
  39,437
  42,243
  45,160
  48,192
  51,344
  54,624
  58,038
  61,592
  65,295
  69,154
  73,179
Total liabilities and equity, $m
  7,733
  9,012
  10,875
  12,951
  15,241
  17,743
  20,453
  23,368
  26,481
  29,789
  33,286
  36,970
  40,837
  44,885
  49,115
  53,525
  58,119
  62,899
  67,869
  73,036
  78,404
  83,982
  89,781
  95,809
  102,076
  108,597
  115,383
  122,449
  129,811
  137,483
  145,485
Debt-to-equity ratio
  0.759
  0.860
  0.880
  0.900
  0.910
  0.920
  0.930
  0.940
  0.950
  0.950
  0.950
  0.960
  0.960
  0.960
  0.960
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.970
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
Adjusted equity ratio
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503
  0.503

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  591
  68
  84
  101
  120
  139
  161
  183
  207
  232
  259
  317
  346
  376
  407
  439
  473
  508
  545
  583
  622
  663
  705
  749
  795
  843
  893
  945
  999
  1,056
  1,115
Depreciation, amort., depletion, $m
  273
  353
  417
  489
  568
  655
  748
  849
  956
  1,071
  1,191
  1,277
  1,410
  1,550
  1,696
  1,849
  2,007
  2,172
  2,344
  2,522
  2,708
  2,901
  3,101
  3,309
  3,525
  3,751
  3,985
  4,229
  4,483
  4,748
  5,025
Funds from operations, $m
  923
  421
  501
  590
  688
  794
  909
  1,032
  1,164
  1,303
  1,450
  1,594
  1,756
  1,926
  2,103
  2,288
  2,481
  2,681
  2,889
  3,105
  3,330
  3,563
  3,806
  4,058
  4,321
  4,594
  4,878
  5,174
  5,482
  5,804
  6,139
Change in working capital, $m
  5
  -18
  -20
  -22
  -25
  -27
  -29
  -31
  -34
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -50
  -52
  -54
  -56
  -58
  -60
  -63
  -65
  -68
  -70
  -73
  -76
  -79
  -83
  -86
Cash from operations, $m
  918
  439
  521
  613
  712
  821
  938
  1,064
  1,197
  1,339
  1,488
  1,633
  1,798
  1,970
  2,149
  2,336
  2,530
  2,732
  2,942
  3,161
  3,388
  3,623
  3,869
  4,123
  4,388
  4,664
  4,951
  5,250
  5,562
  5,887
  6,225
Maintenance CAPEX, $m
  0
  -254
  -311
  -376
  -447
  -526
  -613
  -706
  -807
  -915
  -1,029
  -1,150
  -1,277
  -1,410
  -1,550
  -1,696
  -1,849
  -2,007
  -2,172
  -2,344
  -2,522
  -2,708
  -2,901
  -3,101
  -3,309
  -3,525
  -3,751
  -3,985
  -4,229
  -4,483
  -4,748
New CAPEX, $m
  -480
  -1,293
  -1,460
  -1,628
  -1,796
  -1,962
  -2,125
  -2,285
  -2,441
  -2,593
  -2,742
  -2,888
  -3,032
  -3,174
  -3,316
  -3,458
  -3,602
  -3,747
  -3,897
  -4,050
  -4,209
  -4,374
  -4,546
  -4,726
  -4,914
  -5,112
  -5,321
  -5,540
  -5,771
  -6,015
  -6,273
Cash from investing activities, $m
  -1,106
  -1,547
  -1,771
  -2,004
  -2,243
  -2,488
  -2,738
  -2,991
  -3,248
  -3,508
  -3,771
  -4,038
  -4,309
  -4,584
  -4,866
  -5,154
  -5,451
  -5,754
  -6,069
  -6,394
  -6,731
  -7,082
  -7,447
  -7,827
  -8,223
  -8,637
  -9,072
  -9,525
  -10,000
  -10,498
  -11,021
Free cash flow, $m
  -188
  -1,108
  -1,250
  -1,391
  -1,530
  -1,667
  -1,799
  -1,927
  -2,051
  -2,169
  -2,283
  -2,404
  -2,511
  -2,615
  -2,717
  -2,819
  -2,920
  -3,022
  -3,127
  -3,233
  -3,344
  -3,458
  -3,578
  -3,703
  -3,835
  -3,973
  -4,120
  -4,275
  -4,439
  -4,612
  -4,796
Issuance/(repayment) of debt, $m
  397
  817
  925
  1,032
  1,138
  1,244
  1,347
  1,448
  1,547
  1,644
  1,738
  1,831
  1,922
  2,012
  2,102
  2,192
  2,283
  2,376
  2,470
  2,567
  2,668
  2,773
  2,882
  2,996
  3,115
  3,241
  3,373
  3,512
  3,659
  3,813
  3,976
Issuance/(repurchase) of shares, $m
  712
  752
  853
  943
  1,032
  1,119
  1,203
  1,282
  1,359
  1,431
  1,500
  1,536
  1,599
  1,661
  1,720
  1,779
  1,837
  1,896
  1,955
  2,016
  2,078
  2,143
  2,211
  2,282
  2,357
  2,437
  2,520
  2,609
  2,704
  2,804
  2,910
Cash from financing (excl. dividends), $m  
  1,120
  1,569
  1,778
  1,975
  2,170
  2,363
  2,550
  2,730
  2,906
  3,075
  3,238
  3,367
  3,521
  3,673
  3,822
  3,971
  4,120
  4,272
  4,425
  4,583
  4,746
  4,916
  5,093
  5,278
  5,472
  5,678
  5,893
  6,121
  6,363
  6,617
  6,886
Total cash flow (excl. dividends), $m
  932
  461
  528
  584
  640
  696
  750
  803
  855
  906
  956
  963
  1,011
  1,058
  1,105
  1,153
  1,200
  1,249
  1,299
  1,350
  1,403
  1,458
  1,515
  1,575
  1,638
  1,704
  1,773
  1,847
  1,924
  2,005
  2,091
Retained Cash Flow (-), $m
  -220
  -820
  -937
  -1,044
  -1,152
  -1,259
  -1,363
  -1,466
  -1,566
  -1,664
  -1,759
  -1,853
  -1,945
  -2,036
  -2,127
  -2,219
  -2,311
  -2,404
  -2,500
  -2,598
  -2,700
  -2,806
  -2,916
  -3,032
  -3,153
  -3,280
  -3,414
  -3,554
  -3,703
  -3,859
  -4,024
Prev. year cash balance distribution, $m
 
  358
  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
 
  -2
  -408
  -460
  -512
  -563
  -613
  -662
  -711
  -758
  -803
  -890
  -935
  -978
  -1,022
  -1,066
  -1,110
  -1,155
  -1,201
  -1,249
  -1,297
  -1,348
  -1,401
  -1,457
  -1,515
  -1,576
  -1,640
  -1,708
  -1,779
  -1,854
  -1,934
Discount rate, %
 
  6.20
  6.51
  6.84
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.04
  20.00
  21.00
  22.05
  23.15
  24.30
  25.52
PV of cash for distribution, $m
 
  -1
  -360
  -377
  -388
  -391
  -388
  -379
  -364
  -344
  -321
  -309
  -279
  -248
  -217
  -188
  -160
  -134
  -110
  -89
  -71
  -55
  -42
  -32
  -23
  -17
  -12
  -8
  -5
  -3
  -2
Current shareholders' claim on cash, %
  100
  90.6
  82.6
  75.9
  70.1
  65.3
  61.0
  57.4
  54.1
  51.3
  48.8
  46.6
  44.6
  42.8
  41.2
  39.8
  38.4
  37.2
  36.0
  35.0
  34.0
  33.0
  32.2
  31.4
  30.6
  29.9
  29.2
  28.5
  27.9
  27.3
  26.7

Western Gas Partners, LP is a master limited partnership (MLP) that acquires, owns, develops and operates midstream energy assets. The Company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil in the United States. The Company provides midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. The Company's operations and activities are managed by its general partner, which is indirectly controlled by Anadarko through Western Gas Equity Partners, LP (WGP). As of December 31, 2016, its assets and investments consisted of gathering systems, treating facilities, natural gas processing plants/trains, NGL pipelines, natural gas pipelines and oil pipelines. These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas.

FINANCIAL RATIOS  of  Western Gas Partners (WES)

Valuation Ratios
P/E Ratio 11.6
Price to Sales 3.8
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 7.4
Price to Free Cash Flow 15.6
Growth Rates
Sales Growth Rate 3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -24.8%
Cap. Spend. - 3 Yr. Gr. Rate -6.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 75.9%
Total Debt to Equity 75.9%
Interest Coverage 7
Management Effectiveness
Return On Assets 9.3%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital 8.6%
Ret/ On T. Cap. - 3 Yr. Avg. 5.6%
Return On Equity 14.9%
Return On Equity - 3 Yr. Avg. 9.3%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 72.6%
Gross Margin - 3 Yr. Avg. 70.9%
EBITDA Margin 54.9%
EBITDA Margin - 3 Yr. Avg. 43.3%
Operating Margin 39.2%
Oper. Margin - 3 Yr. Avg. 28.1%
Pre-Tax Margin 33.9%
Pre-Tax Margin - 3 Yr. Avg. 23.2%
Net Profit Margin 32.8%
Net Profit Margin - 3 Yr. Avg. 20.6%
Effective Tax Rate 1.5%
Eff/ Tax Rate - 3 Yr. Avg. 28.7%
Payout Ratio 113.7%

WES stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WES stock intrinsic value calculation we used $1804 million for the last fiscal year's total revenue generated by Western Gas Partners. The default revenue input number comes from 2016 income statement of Western Gas 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 WES stock valuation model: a) initial revenue growth rate of 22.4% 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 6.2%, whose default value for WES is calculated based on our internal credit rating of Western Gas 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 Western Gas 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 WES stock the variable cost ratio is equal to 91%.

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 WES 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 Western Gas Partners.

Corporate tax rate of 27% is the nominal tax rate for Western Gas 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 WES 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 WES are equal to 320%.

Life of production assets of 22.7 years is the average useful life of capital assets used in Western Gas 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 WES is equal to -4.4%. 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 - $4071 million for Western Gas 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 165.65 million for Western Gas 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 Western Gas Partners at the current share price and the inputted number of shares is $7.9 billion.

RELATED COMPANIES Price Int.Val. Rating
KMI Kinder Morgan 17.75 6.07  str.sell
TEP Tallgrass Ener 46.02 18.07  str.sell
EPD Enterprise Pro 25.73 1.90  str.sell
ETP Energy Transfe 16.72 11.95  sell
APC Anadarko Petro 48.54 5.45  str.sell
WMB Williams 29.08 1.40  str.sell

COMPANY NEWS

▶ Western Gas Announces 2018 Outlook   [Dec-05-17 04:05PM  PR Newswire]
▶ WES, ENLK, ENBL, DCP: Gauging Technical Indicators   [Nov-27-17 01:35PM  Market Realist]
▶ What Led to Western Gas Partners Lower Earnings in 3Q17   [Nov-10-17 02:29PM  Market Realist]
▶ Western Gas Equity posts 3Q profit   [Oct-31-17 06:26PM  Associated Press]
▶ MLP Rating Updates Last Week   [03:42PM  Market Realist]
▶ Western Gas Could Outperform Peers In 2018   [Oct-26-17 09:37AM  Benzinga]
▶ Are Analysts Bullish on Western Gas ahead of 3Q17 Results?   [Oct-23-17 07:39AM  Market Realist]
▶ Western Gas Partners Announced 1.7% Distribution Increase   [Oct-19-17 04:07PM  Market Realist]
▶ MLPs Rating Updates during the Week Ending October 13   [Oct-17-17 03:06PM  Market Realist]
▶ Which MLP General Partner Has the Most Buys and Holds?   [Sep-25-17 09:06AM  Market Realist]
▶ Why Western Gas Partners LP (WES) Could Be A Buy   [Sep-22-17 07:11PM  Simply Wall St.]
▶ Western Gas Partners Earns Buy Ratings from 53% of Analysts   [Aug-23-17 09:06AM  Market Realist]
▶ How Institutional Investors Feel about Western Gas Partners   [Aug-22-17 10:36AM  Market Realist]
▶ Comparing Western Gas Partnerss Valuation   [09:06AM  Market Realist]
▶ Why Western Gas Partners is Underperforming AMLP   [Aug-18-17 05:47PM  Market Realist]
▶ Wesfarmers CEO Says in Talks on Sale of Coal Mines   [Aug-17-17 04:21AM  Bloomberg Video]
▶ First Reserve GP XIII Ltd Buys Western Gas Partners, LP   [Aug-14-17 09:38AM  GuruFocus.com]
▶ MLP Earnings: Wrap-Up for Last Week   [Aug-01-17 05:05PM  Market Realist]
▶ Western Gas Equity posts 2Q profit   [Jul-25-17 11:14PM  Associated Press]
▶ Analysts Ratings: WES Has the Most Buys, ENBL the Most Sells   [Jul-05-17 09:05AM  Market Realist]
▶ A Look into the Shale Exposures of WES, ENLK, ENBL, and DCP   [Jun-30-17 03:06PM  Market Realist]
▶ Analysts Ratings: ETE Has Most Buys, ENLC Has Most Sells   [Jun-01-17 09:06AM  Market Realist]
Financial statements of WES
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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