I am long, and I agree with valuation, but I think you did not include preferreds in EV. As well, it is going to cost about $40mm to refi the debt stack (retire bonds over par, etc.). Overall, mkt has been slow to react to the game-changing asset sales that de-risk the balance sheet. Lots of upside from here.
Thank you for the correction. Including the Series A preferreds, SMLP is currently trading at 6.4x 2024E EBITDA, which is still substantially below peer and comparable transaction multiples. I'm planning to share an update on SMLP in a separate blog post in the coming days/weeks, including my additional research on the company's assets and a more detailed SOTP valuation.
I am long, and I agree with valuation, but I think you did not include preferreds in EV. As well, it is going to cost about $40mm to refi the debt stack (retire bonds over par, etc.). Overall, mkt has been slow to react to the game-changing asset sales that de-risk the balance sheet. Lots of upside from here.
Thank you for the correction. Including the Series A preferreds, SMLP is currently trading at 6.4x 2024E EBITDA, which is still substantially below peer and comparable transaction multiples. I'm planning to share an update on SMLP in a separate blog post in the coming days/weeks, including my additional research on the company's assets and a more detailed SOTP valuation.