Midstream & Pipelines Sector Primer
Midstream and pipelines primer with an Excel valuation model. Covers distributable cash flow, coverage, leverage, contract quality and EV/EBITDA.
PDF Only
The full primer in PDF format
£25 / ~$32- ✓ 43-page sector primer
- ✓ Worked valuations
- ✓ Screening thresholds
Excel Model
Plug-and-play valuation template
£45 / ~$58- ✓ Pre-built valuation model
- ✓ Sensitivity tables
- ✓ Scenario toggles
PDF + Model
Everything you need in one package
- ✓ 43-page sector primer
- ✓ Valuation model (.xlsx)
- ✓ Save £11 vs buying separately
Three primers, three Excel models
Oil & Gas, Midstream, and Refining. Everything at ~25% off
Inside the primer
The 15-section contents, a worked valuation page, and the Excel dashboard.
Table of Contents
- 01 How Midstream Makes Money
- 02 Listed Midstream Types
- 03 Structure and Asset Life Ladder
- 04 Segments and Sub-Markets
- 05 Revenue Drivers: Generic Toll Build
- 06 Cost Structure: Distributable Cash Flow, Coverage and Leverage
- 07 Valuation Frameworks
- 08 Worked Examples: Ten-Year Discounted Cash Flow Valuation
- 09 Worked Example: Build vs Buy
- 10 Applied Case: Coverage and Leverage
- 11 Applied Case: Contract Quality and Volume
- 12 The Companies in This Primer
- 13 Key Metrics and Screening
- 14 Risks, Benchmarks and Case Study
- 15 Glossary and Cheat Sheet
43 pages · 15 sections · 2 worked DCFs
The Excel model
Educational material for professional use. This primer and its model are not investment advice or a recommendation to buy or sell any security, and they are not personalised. Worked valuations use illustrative calibrations, not fair-value estimates for any company.
The distribution looks covered until a contract rolls; the value is in the tariff, not the payout. Midstream companies collect fees for moving, processing and storing hydrocarbons between the wellhead and the refinery or export dock. Cash tracks contracted volume times tariff, not the spot oil or gas price, so a reserve-NAV or commodity-sensitivity lens misreads the equity. What matters is contract quality, throughput growth, how much cash survives to the distribution or dividend, and whether the balance sheet can fund both the payout and growth capital.
The primer maps listed structures first (MLP, C-corp, Canadian cross-listed), then the cash vocabulary: distributable cash flow and coverage at partnerships, free cash flow at corporations, leverage on each issuer's own terms, and the footnote traps that make fee-based percentages non-comparable across filings. In this sector DCF means distributable cash flow, so the primer spells out discounted cash flow wherever it means the valuation method. That method is the headline one: a ten-year unlevered discounted cash flow, cross-checked on EV/EBITDA and distribution yield. Two worked valuations carry it: an illustrative MLP contracted-cash-flow perpetuity and a C-corp gas network. A build-versus-buy test on a growth project sits alongside. Applied cases on coverage, leverage, contract quality and volume show how to read a peer set without treating every headline ratio as equivalent.
Shorter free guides on the site cover the same mechanics (structure, cash definitions, take-or-pay contracts, screening multiples) in standalone form; research profiles apply the screens to filed names. The companion Excel model runs to eleven sheets, from the two worked valuations to a coverage-and-leverage screen. Its energy prices sit on one assumptions sheet, shared with the other Selborne models.
Sheets: Quick Start, Instructions, Assumptions, MLP, C-Corp Gas Network, Valuation Summary, Distribution Coverage, Leverage & Contract Quality, EV-EBITDA Screen, Sensitivity, Dashboard.
See this methodology applied to a real company:
Enterprise Products Partners (EPD) →