Hello All,
I currently work in the energy industry and am interviewing for two equity research associate positions in the oil&gas space.
One firm has tasked me with creating an excel financial model to value a specific MLP security. I am looking for best practices, data points that must be included, and, in the best case scenario, a template that will get me started on the right track.
Any and all help and information would be greatly appreciated!
I don't work in equity research but I do work in the (midstream) MLP space. Without thinking too much, the most critical metrics I see for valuation are (i) dcf/unit, (ii) dcf/unit growth (iii) distribution/unit, and (iv) distribution/unit growth. Also need to keep in mind the partnerships balance sheet / liquidity as most of free cash flow is distributed and MLP's rely on their revolver, bond issuances and follow on equity to fund growth. See Boardwalk as to what can happen when an MLP starts to get too levered and begins bumping up against bank covenants.
I am interested in the same as the OP.Does anyone have anything for us.. i would really appreciate it.
MLP Valuation (Originally Posted: 10/20/2014)
As I read analyst notes, it seems like they all use a three-stage distribution discount model to get to their price targets. Anyone have any examples of one of these models or any good links? Thanks
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