Stock on Focus: DCP Midstream, LP (DCP)

Company Profile:

DCP Midstream, LP, together with its subsidiaries, owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States. It operates through two segments, Gathering and Processing, and Logistics and Marketing. The Gathering and Processing segment is involved in gathering, compressing, treating, and processing natural gas; producing and fractionating NGLs; and recovering and selling condensate. The Logistics and Marketing segment engages in transporting, trading, marketing, and storing natural gas and NGLs; fractionating NGLs; and wholesale propane logistics. As of August 7, 2017, it owned and operated approximately 60 plants and 63,000 miles of natural gas and natural gas liquids pipelines with operations in 17 states. The company was formerly known as DCP Midstream Partners, LP and changed its name to DCP Midstream, LP in January 2017. DCP Midstream, LP was founded in 2005 and is headquartered in Denver, Colorado.

Recent News:

On Dec. 1, 2017, DCP Midstream LP breached its 50 day moving average in a Bullish Manner. The company reported strong third quarter 2017 results. It had a strong quarter generating third quarter distributable cash flow of $187 million. It posted net income attributable to partners of $169 million for the nine months ended September 30, 2017, or $0.33 per basic and diluted limited partner unit.

On Nov. 13, 2017, the company announced that it has priced an underwritten public offering of 500,000 of its 7.375% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units at a price of $1,000 per unit.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

DCP’s strengths can be seen in its better growth, strong profitability and robust solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 62.48 with positive bias. We rate DCP Midstream, LP (DCP) a STRONG BUY.

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