Intrinsic value of Western Gas Equity Partners - WGP

Previous Close

$36.68

  Intrinsic Value

$14.12

stock screener

  Rating & Target

str. sell

-62%

Previous close

$36.68

 
Intrinsic value

$14.12

 
Up/down potential

-62%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of WGP 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 8.0

 

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, %
  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
 
  2,004
  2,410
  2,862
  3,361
  3,906
  4,496
  5,130
  5,808
  6,529
  7,290
  8,051
  8,893
  9,774
  10,695
  11,656
  12,656
  13,697
  14,779
  15,904
  17,074
  18,288
  19,551
  20,864
  22,228
  23,648
  25,126
  26,665
  28,268
  29,939
  31,681
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
  1,100
  2,004
  2,410
  2,862
  3,361
  3,906
  4,496
  5,130
  5,808
  6,529
  7,290
  8,051
  8,893
  9,774
  10,695
  11,656
  12,656
  13,697
  14,779
  15,904
  17,074
  18,288
  19,551
  20,864
  22,228
  23,648
  25,126
  26,665
  28,268
  29,939
  31,681
Operating income, $m
  705
  204
  254
  311
  373
  441
  515
  595
  679
  770
  865
  1,007
  1,112
  1,223
  1,338
  1,458
  1,583
  1,713
  1,849
  1,989
  2,135
  2,287
  2,445
  2,610
  2,780
  2,958
  3,143
  3,335
  3,536
  3,745
  3,963
EBITDA, $m
  978
  557
  672
  800
  942
  1,096
  1,264
  1,444
  1,636
  1,840
  2,056
  2,284
  2,523
  2,773
  3,034
  3,307
  3,590
  3,886
  4,193
  4,512
  4,843
  5,188
  5,546
  5,918
  6,306
  6,708
  7,128
  7,564
  8,019
  8,493
  8,987
Interest expense (income), $m
  108
  115
  168
  230
  299
  375
  459
  549
  646
  750
  860
  976
  1,099
  1,228
  1,363
  1,503
  1,650
  1,803
  1,962
  2,128
  2,300
  2,479
  2,665
  2,858
  3,058
  3,267
  3,484
  3,710
  3,946
  4,191
  4,446
Earnings before tax, $m
  605
  88
  86
  81
  74
  66
  56
  46
  33
  20
  5
  31
  13
  -5
  -25
  -46
  -67
  -90
  -114
  -139
  -165
  -191
  -219
  -248
  -278
  -309
  -342
  -375
  -410
  -446
  -484
Tax expense, $m
  8
  24
  23
  22
  20
  18
  15
  12
  9
  5
  1
  8
  4
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  346
  64
  63
  59
  54
  48
  41
  33
  24
  14
  4
  22
  10
  -5
  -25
  -46
  -67
  -90
  -114
  -139
  -165
  -191
  -219
  -248
  -278
  -309
  -342
  -375
  -410
  -446
  -484

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  359
  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
  7,736
  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
  7,377
  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
  281
  -95
  -115
  -136
  -161
  -187
  -215
  -246
  -279
  -314
  -351
  -389
  -430
  -473
  -517
  -564
  -612
  -663
  -715
  -769
  -826
  -885
  -946
  -1,009
  -1,075
  -1,144
  -1,216
  -1,290
  -1,368
  -1,448
  -1,533
Total debt, $m
  3,119
  4,542
  6,218
  8,087
  10,148
  12,400
  14,839
  17,462
  20,264
  23,241
  26,388
  29,704
  33,184
  36,828
  40,634
  44,604
  48,739
  53,040
  57,514
  62,163
  66,995
  72,016
  77,234
  82,659
  88,300
  94,168
  100,276
  106,636
  113,261
  120,166
  127,367
Total liabilities, $m
  6,688
  8,111
  9,787
  11,656
  13,717
  15,969
  18,408
  21,031
  23,833
  26,810
  29,957
  33,273
  36,753
  40,397
  44,203
  48,173
  52,308
  56,609
  61,083
  65,732
  70,564
  75,585
  80,803
  86,228
  91,869
  97,737
  103,845
  110,205
  116,830
  123,735
  130,936
Total equity, $m
  1,048
  901
  1,087
  1,295
  1,524
  1,774
  2,045
  2,337
  2,648
  2,979
  3,329
  3,697
  4,084
  4,489
  4,911
  5,353
  5,812
  6,290
  6,787
  7,304
  7,840
  8,398
  8,978
  9,581
  10,208
  10,860
  11,538
  12,245
  12,981
  13,748
  14,548
Total liabilities and equity, $m
  7,736
  9,012
  10,874
  12,951
  15,241
  17,743
  20,453
  23,368
  26,481
  29,789
  33,286
  36,970
  40,837
  44,886
  49,114
  53,526
  58,120
  62,899
  67,870
  73,036
  78,404
  83,983
  89,781
  95,809
  102,077
  108,597
  115,383
  122,450
  129,811
  137,483
  145,484
Debt-to-equity ratio
  2.976
  5.040
  5.720
  6.240
  6.660
  6.990
  7.260
  7.470
  7.650
  7.800
  7.930
  8.030
  8.130
  8.200
  8.270
  8.330
  8.390
  8.430
  8.470
  8.510
  8.540
  8.580
  8.600
  8.630
  8.650
  8.670
  8.690
  8.710
  8.730
  8.740
  8.750
Adjusted equity ratio
  0.093
  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
  346
  64
  63
  59
  54
  48
  41
  33
  24
  14
  4
  22
  10
  -5
  -25
  -46
  -67
  -90
  -114
  -139
  -165
  -191
  -219
  -248
  -278
  -309
  -342
  -375
  -410
  -446
  -484
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
  1,000
  418
  480
  548
  622
  703
  789
  882
  981
  1,085
  1,195
  1,299
  1,420
  1,545
  1,671
  1,803
  1,940
  2,082
  2,230
  2,384
  2,543
  2,709
  2,882
  3,061
  3,247
  3,441
  3,643
  3,854
  4,073
  4,302
  4,541
Change in working capital, $m
  87
  -17
  -20
  -22
  -24
  -26
  -29
  -31
  -33
  -35
  -37
  -39
  -41
  -43
  -45
  -46
  -48
  -50
  -52
  -54
  -57
  -59
  -61
  -63
  -66
  -69
  -71
  -74
  -78
  -81
  -84
Cash from operations, $m
  913
  435
  500
  570
  646
  729
  818
  913
  1,014
  1,120
  1,232
  1,338
  1,461
  1,588
  1,716
  1,850
  1,988
  2,133
  2,282
  2,438
  2,600
  2,768
  2,943
  3,124
  3,313
  3,510
  3,715
  3,928
  4,151
  4,383
  4,625
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
  -193
  -1,113
  -1,271
  -1,433
  -1,596
  -1,759
  -1,920
  -2,078
  -2,234
  -2,388
  -2,539
  -2,700
  -2,848
  -2,997
  -3,150
  -3,305
  -3,462
  -3,622
  -3,787
  -3,956
  -4,131
  -4,314
  -4,504
  -4,702
  -4,910
  -5,127
  -5,356
  -5,597
  -5,849
  -6,116
  -6,396
Issuance/(repayment) of debt, $m
  423
  1,423
  1,676
  1,869
  2,061
  2,252
  2,439
  2,623
  2,802
  2,977
  3,148
  3,315
  3,480
  3,644
  3,807
  3,970
  4,134
  4,302
  4,473
  4,649
  4,832
  5,021
  5,218
  5,425
  5,641
  5,869
  6,108
  6,360
  6,625
  6,905
  7,201
Issuance/(repurchase) of shares, $m
  687
  148
  123
  149
  175
  202
  230
  258
  287
  316
  346
  346
  377
  410
  448
  487
  527
  568
  611
  655
  701
  749
  799
  851
  905
  961
  1,020
  1,082
  1,146
  1,213
  1,284
Cash from financing (excl. dividends), $m  
  826
  1,571
  1,799
  2,018
  2,236
  2,454
  2,669
  2,881
  3,089
  3,293
  3,494
  3,661
  3,857
  4,054
  4,255
  4,457
  4,661
  4,870
  5,084
  5,304
  5,533
  5,770
  6,017
  6,276
  6,546
  6,830
  7,128
  7,442
  7,771
  8,118
  8,485
Total cash flow (excl. dividends), $m
  633
  458
  528
  584
  640
  695
  749
  803
  855
  905
  955
  962
  1,010
  1,057
  1,104
  1,152
  1,199
  1,248
  1,298
  1,349
  1,402
  1,456
  1,514
  1,574
  1,636
  1,702
  1,772
  1,845
  1,922
  2,003
  2,089
Retained Cash Flow (-), $m
  443
  -212
  -186
  -208
  -229
  -250
  -271
  -291
  -311
  -331
  -350
  -368
  -387
  -410
  -448
  -487
  -527
  -568
  -611
  -655
  -701
  -749
  -799
  -851
  -905
  -961
  -1,020
  -1,082
  -1,146
  -1,213
  -1,284
Prev. year cash balance distribution, $m
 
  359
  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
 
  605
  342
  376
  411
  445
  478
  511
  543
  575
  605
  593
  623
  647
  656
  665
  673
  680
  687
  693
  700
  707
  715
  723
  731
  741
  752
  763
  776
  790
  805
Discount rate, %
 
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
 
  558
  288
  288
  282
  272
  258
  240
  220
  198
  175
  143
  122
  102
  82
  64
  50
  38
  28
  20
  14
  10
  7
  4
  3
  2
  1
  1
  0
  0
  0
Current shareholders' claim on cash, %
  100
  97.3
  95.6
  93.9
  92.3
  90.7
  89.2
  87.7
  86.4
  85.0
  83.8
  82.6
  81.6
  80.5
  79.5
  78.5
  77.5
  76.5
  75.5
  74.6
  73.7
  72.8
  71.9
  71.0
  70.1
  69.3
  68.4
  67.6
  66.8
  66.0
  65.2

Western Gas Equity Partners, LP is a limited partnership. The Company is formed to own approximately three types of partnership interests in Western Gas Partners, LP (WES). WES is an master limited partnership (MLP) engaged in the business of gathering, compressing, treating, processing and transporting natural gas, and gathering, stabilizing and transporting condensate, natural gas liquids (NGLs) and crude oil. WES provides these midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. Its assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas. The Bison treating facility treats and compresses gas from coal-bed methane wells in the Powder River Basin of Wyoming. MIGC, LLC receives gas from various coal-bed methane gathering systems in the Powder River Basin and the Hilight system, as well as from WBI Energy Transmission, Inc.

FINANCIAL RATIOS  of  Western Gas Equity Partners (WGP)

Valuation Ratios
P/E Ratio 23.2
Price to Sales 4.5
Price to Book 7.7
Price to Tangible Book
Price to Cash Flow 8.8
Price to Free Cash Flow 18.5
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 297.6%
Total Debt to Equity 297.6%
Interest Coverage 7
Management Effectiveness
Return On Assets 6%
Ret/ On Assets - 3 Yr. Avg. 4.6%
Return On Total Capital 8.3%
Ret/ On T. Cap. - 3 Yr. Avg. 6.6%
Return On Equity 27.3%
Return On Equity - 3 Yr. Avg. 19.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 72.6%
Gross Margin - 3 Yr. Avg. 69.9%
EBITDA Margin 54.7%
EBITDA Margin - 3 Yr. Avg. 43.1%
Operating Margin 39%
Oper. Margin - 3 Yr. Avg. 27.4%
Pre-Tax Margin 33.5%
Pre-Tax Margin - 3 Yr. Avg. 22.3%
Net Profit Margin 19.2%
Net Profit Margin - 3 Yr. Avg. 15.3%
Effective Tax Rate 1.3%
Eff/ Tax Rate - 3 Yr. Avg. 28.2%
Payout Ratio 108.1%

WGP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WGP stock intrinsic value calculation we used $1804 million for the last fiscal year's total revenue generated by Western Gas Equity Partners. The default revenue input number comes from 2016 income statement of Western Gas Equity 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 WGP 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 8.5%, whose default value for WGP is calculated based on our internal credit rating of Western Gas Equity 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 Equity 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 WGP stock the variable cost ratio is equal to 91.2%.

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 WGP 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 Equity Partners.

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

Life of production assets of 22.7 years is the average useful life of capital assets used in Western Gas Equity 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 WGP is equal to -4.3%. 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 - $1048 million for Western Gas Equity 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 218.939 million for Western Gas Equity 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 Equity Partners at the current share price and the inputted number of shares is $8.0 billion.

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PSX Phillips 66 99.55 136.73  str.buy

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.]
▶ Analysts Ratings for Energy Transfer Equity   [Sep-08-17 07:37AM  Market Realist]
▶ 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]
▶ What Analysts Recommend for ETE   [Aug-17-17 10:37AM  Market Realist]
▶ 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]
▶ What Analysts Recommend for ETE   [Jul-20-17 10:37AM  Market Realist]
▶ Analysts Ratings: WES Has the Most Buys, ENBL the Most Sells   [Jul-05-17 09:05AM  Market Realist]
▶ Examining the Growth Prospects of WES, ENLK, ENBL, and DCP   [Jul-04-17 09:06AM  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]
▶ Why PAGP Has the Highest Distribution Yield among Its Peers   [May-30-17 09:06AM  Market Realist]
▶ Western Gas names new CFO to succeed recently promoted CEO   [May-22-17 09:15AM  American City Business Journals]
▶ The Recent Analyst Recommendations for ETE   [07:36AM  Market Realist]
▶ Western Gas Equity misses 1Q profit forecasts   [May-02-17 06:43PM  Associated Press]
Financial statements of WGP
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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