EPD Intrinsic Value

EPD

Enterprise Products Partners L P – All Other Business Support Services

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Its services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and export and import terminals; crude oil gathering, transportation, storage and export and import terminals; petrochemical and refined products transportation, storage, export and import terminals and related services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership's assets include approximately 50,000 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.

Analysis Results

Intrinsic Value	$180.36
Latest Price	$25.48
Relative Value	86% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

Analysis Details

Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 21.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year	Future flow (billion)	Present value (billion)
2023	8.03	7.6
2024	9.77	8.73
2025	11.9	10.0
2026	14.4	11.5
2027	17.6	13.3

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 477 billion. This corresponds to a present value of 341 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 51.2 billion. Adding in the terminal value gives a total present value of 392 billion.

There are presently 2.17 billion outstanding shares, so the intrinsic value per share is 180.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	10,598,000,000
Current Cash	76,000,000
Current Liabilities	12,265,000,000
Current Debt	1,744,000,000
Non-Cash Working Capital (NCWC)	1,000,000
Change in NCWC	-224,300,000
EBIT	6,907,000,000
Tax Provision	82,000,000
Depreciation and Amortization	2,245,000,000
Capital Expenditure	-1,964,000,000
Unlevered Free Cash Flow	6,864,283,816

Current Assets	13,269,400,000
Current Cash	2,819,400,000
Current Liabilities	11,624,500,000
Current Debt	1,399,800,000
Non-Cash Working Capital (NCWC)	225,300,000
Change in NCWC	-961,200,000
EBIT	6,103,700,000
Tax Provision	70,000,000
Depreciation and Amortization	2,139,800,000
Capital Expenditure	-2,223,200,000
Unlevered Free Cash Flow	4,970,554,417

Current Assets	9,909,400,000
Current Cash	1,059,900,000
Current Liabilities	8,988,000,000
Current Debt	1,325,000,000
Non-Cash Working Capital (NCWC)	1,186,500,000
Change in NCWC	806,100,000
EBIT	5,035,100,000
Tax Provision	-124,300,000
Depreciation and Amortization	2,071,900,000
Capital Expenditure	-3,287,900,000
Unlevered Free Cash Flow	4,625,200,000

Current Assets	7,862,900,000
Current Cash	334,700,000
Current Liabilities	9,129,700,000
Current Debt	1,981,900,000
Non-Cash Working Capital (NCWC)	380,400,000
Change in NCWC	331,900,000
EBIT	6,078,700,000
Tax Provision	45,600,000
Depreciation and Amortization	1,949,300,000
Capital Expenditure	-4,531,700,000
Unlevered Free Cash Flow	3,769,631,166

Current Assets	6,060,700,000
Current Cash	344,800,000
Current Liabilities	7,167,500,000
Current Debt	1,500,100,000
Non-Cash Working Capital (NCWC)	48,500,000
Change in NCWC	-12,700,000
EBIT	5,408,600,000
Tax Provision	60,300,000
Depreciation and Amortization	1,791,600,000
Capital Expenditure	-4,223,200,000
Unlevered Free Cash Flow	2,888,432,646

Current Assets	6,506,400,000
Current Cash	5,100,000
Current Liabilities	9,295,100,000
Current Debt	2,855,000,000
Non-Cash Working Capital (NCWC)	61,200,000
Change in NCWC	-730,200,000
EBIT	3,928,900,000
Tax Provision	25,700,000
Depreciation and Amortization	1,644,000,000
Capital Expenditure	-3,147,900,000
Unlevered Free Cash Flow	1,659,755,842

Current Assets	6,528,200,000
Current Cash	63,100,000
Current Liabilities	8,250,500,000
Current Debt	2,576,800,000
Non-Cash Working Capital (NCWC)	791,400,000
Change in NCWC	1,800,100,000
EBIT	3,580,700,000
Tax Provision	23,400,000
Depreciation and Amortization	1,552,000,000
Capital Expenditure	-3,025,100,000
Unlevered Free Cash Flow	3,875,178,504

Current Assets	4,313,000,000
Current Cash	19,000,000
Current Liabilities	7,166,600,000
Current Debt	1,863,900,000
Non-Cash Working Capital (NCWC)	-1,008,700,000
Change in NCWC	-757,700,000
EBIT	3,540,200,000
Tax Provision	-2,500,000
Depreciation and Amortization	1,516,000,000
Capital Expenditure	-3,830,700,000
Unlevered Free Cash Flow	467,800,000

Current Assets	5,490,700,000
Current Cash	74,400,000
Current Liabilities	7,873,700,000
Current Debt	2,206,400,000
Non-Cash Working Capital (NCWC)	-251,000,000
Change in NCWC	-103,800,000
EBIT	3,775,700,000
Tax Provision	23,100,000
Depreciation and Amortization	1,360,500,000
Capital Expenditure	-2,892,900,000
Unlevered Free Cash Flow	2,108,967,664

Current Assets	7,023,400,000
Current Cash	56,900,000
Current Liabilities	8,238,700,000
Current Debt	1,125,000,000
Non-Cash Working Capital (NCWC)	-147,200,000
Change in NCWC	234,900,000
EBIT	3,467,300,000
Tax Provision	57,500,000
Depreciation and Amortization	1,217,600,000
Capital Expenditure	-3,408,200,000
Unlevered Free Cash Flow	1,436,778,356

Current Assets	5,843,100,000
Current Cash	16,100,000
Current Liabilities	7,755,700,000
Current Debt	1,546,600,000
Non-Cash Working Capital (NCWC)	-382,100,000
Change in NCWC	501,400,000
EBIT	3,109,200,000
Tax Provision	-17,200,000
Depreciation and Amortization	1,104,900,000
Capital Expenditure	-3,621,900,000
Unlevered Free Cash Flow	1,093,600,000

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