Introduction
When looking across the broader midstream industry there have been many increasing their distributions during 2021 following the turmoil of 2020 mostly ending. Even though BP Midstream Partners (BPMP) have minimal scope
BP Midstream Partners: Intrinsic Value Still Over 50% Higher Even Without Any Distribution Growth
Summary
- Many of those in the midstream industry have been increasing their distributions during 2021 but not BP Midstream Partners.
- Although to be fair, they stood out during 2020 for sustaining their distributions amidst the turmoil and thankfully they remain safe going forwards.
- When estimating their intrinsic value, it was found that even without any distribution growth, there remains a very impressive potential upside of over 50%.
- Even after reaching this estimated intrinsic value, their units would still be trading with a high distribution yield of 6.65% and thus it does not sound unrealistic.
- Given this very desirable situation, I believe that maintaining my bullish rating is appropriate.
I primarily focus on income investments, as well as deep value and contrarian opportunities.
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