Intrinsic value of Western Gas Partners - WES

Previous Close

$52.27

  Intrinsic Value

$71.66

stock screener

  Rating & Target

buy

+37%

Previous close

$52.27

 
Intrinsic value

$71.66

 
Up/down potential

+37%

 
Rating

buy

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 2017), $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 8.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  24.60
  22.64
  20.88
  19.29
  17.86
  16.57
  15.42
  14.37
  13.44
  12.59
  11.83
  11.15
  10.54
  9.98
  9.48
  9.04
  8.63
  8.27
  7.94
  7.65
  7.38
  7.14
  6.93
  6.74
  6.56
  6.41
  6.27
  6.14
  6.03
  5.92
Revenue, $m
  2,801
  3,435
  4,152
  4,953
  5,838
  6,805
  7,854
  8,984
  10,191
  11,474
  12,832
  14,263
  15,765
  17,339
  18,983
  20,699
  22,485
  24,345
  26,278
  28,288
  30,376
  32,546
  34,802
  37,147
  39,585
  42,121
  44,760
  47,509
  50,371
  53,355
Variable operating expenses, $m
  1,772
  2,146
  2,569
  3,042
  3,564
  4,134
  4,753
  5,420
  6,132
  6,889
  7,571
  8,415
  9,302
  10,230
  11,201
  12,213
  13,267
  14,364
  15,505
  16,690
  17,923
  19,203
  20,534
  21,917
  23,356
  24,852
  26,410
  28,031
  29,720
  31,480
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
  1,772
  2,146
  2,569
  3,042
  3,564
  4,134
  4,753
  5,420
  6,132
  6,889
  7,571
  8,415
  9,302
  10,230
  11,201
  12,213
  13,267
  14,364
  15,505
  16,690
  17,923
  19,203
  20,534
  21,917
  23,356
  24,852
  26,410
  28,031
  29,720
  31,480
Operating income, $m
  1,029
  1,289
  1,583
  1,912
  2,274
  2,671
  3,101
  3,564
  4,059
  4,585
  5,261
  5,847
  6,463
  7,109
  7,783
  8,486
  9,219
  9,981
  10,773
  11,597
  12,454
  13,343
  14,268
  15,229
  16,229
  17,269
  18,351
  19,478
  20,651
  21,874
EBITDA, $m
  1,970
  2,416
  2,921
  3,484
  4,106
  4,787
  5,525
  6,319
  7,168
  8,071
  9,026
  10,032
  11,089
  12,196
  13,353
  14,559
  15,816
  17,124
  18,483
  19,897
  21,366
  22,893
  24,479
  26,128
  27,843
  29,627
  31,484
  33,417
  35,430
  37,529
Interest expense (income), $m
  106
  187
  269
  379
  503
  642
  795
  962
  1,143
  1,339
  1,547
  1,769
  2,004
  2,252
  2,512
  2,784
  3,068
  3,365
  3,674
  3,995
  4,330
  4,677
  5,039
  5,414
  5,804
  6,210
  6,631
  7,070
  7,526
  8,002
  8,497
Earnings before tax, $m
  842
  1,020
  1,204
  1,409
  1,633
  1,876
  2,139
  2,421
  2,720
  3,038
  3,491
  3,843
  4,212
  4,597
  4,999
  5,418
  5,854
  6,307
  6,778
  7,268
  7,776
  8,305
  8,854
  9,425
  10,019
  10,638
  11,281
  11,951
  12,650
  13,378
Tax expense, $m
  227
  275
  325
  380
  441
  507
  578
  654
  734
  820
  943
  1,038
  1,137
  1,241
  1,350
  1,463
  1,581
  1,703
  1,830
  1,962
  2,100
  2,242
  2,391
  2,545
  2,705
  2,872
  3,046
  3,227
  3,415
  3,612
Net income, $m
  615
  745
  879
  1,028
  1,192
  1,370
  1,562
  1,767
  1,986
  2,217
  2,549
  2,806
  3,075
  3,356
  3,649
  3,955
  4,273
  4,604
  4,948
  5,305
  5,677
  6,063
  6,464
  6,881
  7,314
  7,765
  8,235
  8,724
  9,234
  9,766

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  9,968
  12,225
  14,777
  17,627
  20,775
  24,218
  27,952
  31,970
  36,266
  40,833
  45,665
  50,757
  56,104
  61,705
  67,557
  73,661
  80,019
  86,636
  93,516
  100,668
  108,100
  115,824
  123,850
  132,194
  140,871
  149,897
  159,290
  169,070
  179,257
  189,875
Adjusted assets (=assets-cash), $m
  9,968
  12,225
  14,777
  17,627
  20,775
  24,218
  27,952
  31,970
  36,266
  40,833
  45,665
  50,757
  56,104
  61,705
  67,557
  73,661
  80,019
  86,636
  93,516
  100,668
  108,100
  115,824
  123,850
  132,194
  140,871
  149,897
  159,290
  169,070
  179,257
  189,875
Revenue / Adjusted assets
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
Average production assets, $m
  8,218
  10,079
  12,183
  14,533
  17,128
  19,967
  23,045
  26,358
  29,899
  33,665
  37,649
  41,847
  46,256
  50,873
  55,697
  60,730
  65,972
  71,427
  77,100
  82,996
  89,124
  95,491
  102,109
  108,988
  116,142
  123,583
  131,327
  139,390
  147,789
  156,543
Working capital, $m
  -437
  -536
  -648
  -773
  -911
  -1,062
  -1,225
  -1,401
  -1,590
  -1,790
  -2,002
  -2,225
  -2,459
  -2,705
  -2,961
  -3,229
  -3,508
  -3,798
  -4,099
  -4,413
  -4,739
  -5,077
  -5,429
  -5,795
  -6,175
  -6,571
  -6,983
  -7,411
  -7,858
  -8,323
Total debt, $m
  4,988
  7,019
  9,315
  11,881
  14,714
  17,813
  21,173
  24,789
  28,655
  32,766
  37,115
  41,698
  46,510
  51,551
  56,817
  62,311
  68,034
  73,989
  80,181
  86,618
  93,307
  100,258
  107,482
  114,991
  122,800
  130,923
  139,377
  148,179
  157,348
  166,904
Total liabilities, $m
  8,971
  11,002
  13,299
  15,864
  18,698
  21,796
  25,157
  28,773
  32,639
  36,749
  41,098
  45,681
  50,494
  55,534
  60,801
  66,295
  72,017
  77,972
  84,165
  90,601
  97,290
  104,241
  111,465
  118,975
  126,784
  134,907
  143,361
  152,163
  161,332
  170,888
Total equity, $m
  997
  1,222
  1,478
  1,763
  2,078
  2,422
  2,795
  3,197
  3,627
  4,083
  4,566
  5,076
  5,610
  6,170
  6,756
  7,366
  8,002
  8,664
  9,352
  10,067
  10,810
  11,582
  12,385
  13,219
  14,087
  14,990
  15,929
  16,907
  17,926
  18,988
Total liabilities and equity, $m
  9,968
  12,224
  14,777
  17,627
  20,776
  24,218
  27,952
  31,970
  36,266
  40,832
  45,664
  50,757
  56,104
  61,704
  67,557
  73,661
  80,019
  86,636
  93,517
  100,668
  108,100
  115,823
  123,850
  132,194
  140,871
  149,897
  159,290
  169,070
  179,258
  189,876
Debt-to-equity ratio
  5.000
  5.740
  6.300
  6.740
  7.080
  7.360
  7.570
  7.750
  7.900
  8.020
  8.130
  8.220
  8.290
  8.350
  8.410
  8.460
  8.500
  8.540
  8.570
  8.600
  8.630
  8.660
  8.680
  8.700
  8.720
  8.730
  8.750
  8.760
  8.780
  8.790
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  615
  745
  879
  1,028
  1,192
  1,370
  1,562
  1,767
  1,986
  2,217
  2,549
  2,806
  3,075
  3,356
  3,649
  3,955
  4,273
  4,604
  4,948
  5,305
  5,677
  6,063
  6,464
  6,881
  7,314
  7,765
  8,235
  8,724
  9,234
  9,766
Depreciation, amort., depletion, $m
  941
  1,127
  1,337
  1,572
  1,832
  2,116
  2,424
  2,755
  3,109
  3,486
  3,765
  4,185
  4,626
  5,087
  5,570
  6,073
  6,597
  7,143
  7,710
  8,300
  8,912
  9,549
  10,211
  10,899
  11,614
  12,358
  13,133
  13,939
  14,779
  15,654
Funds from operations, $m
  1,556
  1,872
  2,216
  2,601
  3,024
  3,486
  3,985
  4,522
  5,095
  5,703
  6,314
  6,990
  7,700
  8,443
  9,219
  10,028
  10,870
  11,747
  12,658
  13,605
  14,589
  15,612
  16,674
  17,779
  18,928
  20,124
  21,368
  22,663
  24,013
  25,420
Change in working capital, $m
  -86
  -99
  -112
  -125
  -138
  -151
  -164
  -176
  -188
  -200
  -212
  -223
  -234
  -245
  -257
  -268
  -279
  -290
  -302
  -314
  -326
  -339
  -352
  -366
  -380
  -396
  -412
  -429
  -447
  -465
Cash from operations, $m
  1,642
  1,970
  2,328
  2,726
  3,162
  3,636
  4,149
  4,698
  5,283
  5,903
  6,525
  7,213
  7,935
  8,689
  9,476
  10,296
  11,149
  12,037
  12,960
  13,919
  14,915
  15,950
  17,026
  18,145
  19,309
  20,519
  21,780
  23,092
  24,460
  25,885
Maintenance CAPEX, $m
  -660
  -822
  -1,008
  -1,218
  -1,453
  -1,713
  -1,997
  -2,305
  -2,636
  -2,990
  -3,366
  -3,765
  -4,185
  -4,626
  -5,087
  -5,570
  -6,073
  -6,597
  -7,143
  -7,710
  -8,300
  -8,912
  -9,549
  -10,211
  -10,899
  -11,614
  -12,358
  -13,133
  -13,939
  -14,779
New CAPEX, $m
  -1,621
  -1,861
  -2,104
  -2,350
  -2,595
  -2,839
  -3,078
  -3,313
  -3,542
  -3,765
  -3,984
  -4,198
  -4,409
  -4,617
  -4,825
  -5,033
  -5,242
  -5,455
  -5,673
  -5,896
  -6,128
  -6,368
  -6,618
  -6,879
  -7,153
  -7,441
  -7,744
  -8,063
  -8,399
  -8,754
Cash from investing activities, $m
  -2,281
  -2,683
  -3,112
  -3,568
  -4,048
  -4,552
  -5,075
  -5,618
  -6,178
  -6,755
  -7,350
  -7,963
  -8,594
  -9,243
  -9,912
  -10,603
  -11,315
  -12,052
  -12,816
  -13,606
  -14,428
  -15,280
  -16,167
  -17,090
  -18,052
  -19,055
  -20,102
  -21,196
  -22,338
  -23,533
Free cash flow, $m
  -639
  -712
  -784
  -843
  -887
  -915
  -926
  -919
  -894
  -852
  -825
  -750
  -659
  -554
  -436
  -307
  -166
  -15
  144
  312
  488
  670
  860
  1,055
  1,257
  1,464
  1,677
  1,896
  2,121
  2,353
Issuance/(repayment) of debt, $m
  1,523
  2,031
  2,297
  2,565
  2,833
  3,099
  3,360
  3,616
  3,866
  4,110
  4,349
  4,583
  4,813
  5,040
  5,267
  5,494
  5,723
  5,955
  6,192
  6,437
  6,689
  6,951
  7,224
  7,510
  7,809
  8,123
  8,454
  8,802
  9,169
  9,556
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,523
  2,031
  2,297
  2,565
  2,833
  3,099
  3,360
  3,616
  3,866
  4,110
  4,349
  4,583
  4,813
  5,040
  5,267
  5,494
  5,723
  5,955
  6,192
  6,437
  6,689
  6,951
  7,224
  7,510
  7,809
  8,123
  8,454
  8,802
  9,169
  9,556
Total cash flow (excl. dividends), $m
  884
  1,319
  1,513
  1,723
  1,946
  2,184
  2,434
  2,697
  2,972
  3,258
  3,524
  3,833
  4,154
  4,486
  4,830
  5,187
  5,557
  5,940
  6,337
  6,749
  7,177
  7,621
  8,084
  8,565
  9,065
  9,587
  10,131
  10,698
  11,290
  11,909
Retained Cash Flow (-), $m
  -431
  -226
  -255
  -285
  -315
  -344
  -373
  -402
  -430
  -457
  -483
  -509
  -535
  -560
  -585
  -610
  -636
  -662
  -688
  -715
  -743
  -772
  -803
  -834
  -868
  -903
  -939
  -978
  -1,019
  -1,062
Prev. year cash balance distribution, $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 flow adjustment, $m
  4
  6
  7
  8
  10
  12
  14
  16
  18
  20
  23
  26
  29
  32
  35
  38
  41
  45
  49
  53
  57
  61
  65
  70
  74
  79
  84
  90
  95
  101
Cash available for distribution, $m
  453
  1,093
  1,258
  1,438
  1,632
  1,839
  2,061
  2,295
  2,542
  2,802
  3,041
  3,324
  3,619
  3,926
  4,245
  4,577
  4,921
  5,278
  5,649
  6,034
  6,433
  6,849
  7,281
  7,730
  8,198
  8,684
  9,192
  9,720
  10,272
  10,847
Discount rate, %
  10.00
  10.50
  11.03
  11.58
  12.16
  12.76
  13.40
  14.07
  14.77
  15.51
  16.29
  17.10
  17.96
  18.86
  19.80
  20.79
  21.83
  22.92
  24.07
  25.27
  26.53
  27.86
  29.25
  30.72
  32.25
  33.86
  35.56
  37.33
  39.20
  41.16
PV of cash for distribution, $m
  412
  896
  919
  928
  919
  895
  855
  801
  736
  662
  578
  500
  423
  350
  283
  223
  172
  129
  94
  67
  46
  31
  20
  12
  8
  4
  2
  1
  1
  0
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

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 12.7
Price to Sales 4.1
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 8.1
Price to Free Cash Flow 17.1
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 $2248 million for the last fiscal year's total revenue generated by Western Gas Partners. The default revenue input number comes from 2017 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 24.6% 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 10%, 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 64.3%.

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 5.4% 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 0.2%.

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 293.4%.

Life of production assets of 10 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 -15.6%. 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 - $566 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 153 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 $8.0 billion.

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APC Anadarko Petro 62.05 360.56  str.buy
WMB Williams 30.47 5.07  str.sell

COMPANY NEWS

▶ Australian Corporate Giants Try to Get Rich By Getting Smaller   [Aug-16-18 09:15PM  Bloomberg Video]
▶ Western Gas Announces Second-Quarter 2018 Results   [Jul-31-18 04:05PM  PR Newswire]
▶ This High-Yield Stock Is About to Hit the Accelerator   [Jun-25-18 05:36PM  Motley Fool]
▶ Best Growth Stocks To Buy This May   [May-26-18 12:02PM  Simply Wall St.]
▶ Western Gas To Present At Upcoming Bernstein Conference   [May-23-18 06:00PM  PR Newswire]
▶ Anadarko to spend up to $4.5 billion in 2018   [May-17-18 03:07PM  American City Business Journals]
▶ Western Gas names new COO, replacing exec who moved to former Anadarko CEOs new co.   [May-15-18 09:15AM  American City Business Journals]
▶ Western Gas Names New Chief Operating Officer   [May-13-18 09:32PM  PR Newswire]
▶ Enterprise and partners to restore service on pipeline, expand capacity on others   [May-07-18 01:47PM  American City Business Journals]
▶ Seaport Global On Energy: Focus On Simple Companies   [Apr-09-18 04:20PM  Benzinga]
▶ Can This 8.6% Yielder Continue Growing Its Dividend?   [Apr-05-18 06:32AM  Motley Fool]
▶ 3 M&A Deals That Would Just Make Sense   [Apr-02-18 08:05AM  Motley Fool]
▶ Wesfarmers 1H Profit Slumps to 15-Year Low   [02:11AM  Bloomberg Video]
▶ Western Gas Annual Reports Available   [Feb-20-18 06:30PM  PR Newswire]
▶ The Wesfarmers result was disappointing   [Feb-04-18 04:38PM  CNBC Videos]
▶ WES, EQM, and CEQP among Gathering MLPs on Barclays Radar   [Jan-25-18 02:45PM  Market Realist]
▶ What Energy Transfer Partners Technical Indicators Say   [Jan-10-18 09:03AM  Market Realist]
▶ MLP Rating Updates for Week Ended January 5   [Jan-08-18 02:20PM  Market Realist]
▶ Analyst Ratings: WMB Has the Most Buys, WGP the Most Holds   [Dec-20-17 07:30AM  Market Realist]
▶ Williams Companies Has the Lowest Valuation among Its Peers   [Dec-18-17 10:32AM  Market Realist]
▶ ETE, PAGP, WGP, WMB: Analyzing Earnings Growth in 3Q17   [Dec-15-17 05:30PM  Market Realist]
▶ 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]
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