What Analysts Recommend for DCP Midstream Ahead of 2Q16 Results



Analyst ratings for DCP Midstream

In this article, we’ll look at what Wall Street analysts recommend for DCP Midstream Partners (DPM). 71.4% of analysts rate DCP Midstream Partners a “hold,” 14.3% rate it as “buy,” and the remaining 14.3% rate it a “sell.”

The above table shows recommendations for DPM from some of the brokers surveyed. The high and low target prices for DPM are $39 and $31, respectively. The median broker target price of $34.50 for DPM implies a 2.1% price return in the next 12 months from its June 26, 2016, closing price of $33.80. DPM peers EnLink Midstream Partners (ENLK) and Summit Midstream Partners (SMLP) have “hold” ratings from 53.3% and 60.0% of analysts, respectively. 50% of analysts rate Boardwalk Pipeline Partners (BWP) a “buy.”

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Outlook for DCP Midstream

Investors could consider the following positives and negatives before they decide to include DPM as a long-term investment.


  • strong support from its 50-50 joint venture sponsors, Phillips 66 (PSX) and Spectra Energy (SE)
  • can expect dropdown from its general partner, DCP Midstream LLC, in the future
  • strong fee-based NGL (natural gas liquid) logistics business


  • flat distributions over the past several quarters
  • exposure to natural gas prices through natural gas midstream activities
  • DPM’s cash flows are majorly dependent upon throughput volumes with very low MVCs (minimum volume commitments) or take-or-pay contracts, and the declining Eagle Ford production affects DPM’s natural gas throughput volumes

For more pre-earnings release coverage on midstream companies, check out our Master Limited Partnerships page.


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