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NXG Cushing Midstream Energy Fund (SRV)

Company Dividend Discount ModelIndustry: Asset ManagementSector: Financial Services

Valuation Snapshot

Stable Growth$350.46 - $935.56$536.93
Multi-Stage$251.27 - $273.89$262.37
Blended Fair Value$399.65
Current Price$39.93
Upside900.88%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.08%0.00%4.523.441.700.921.592.152.152.152.140.00
YoY Growth--31.37%103.11%83.33%-41.97%-25.75%0.00%0.06%0.28%0.00%0.00%
Dividend Yield--9.73%9.83%4.81%2.92%7.81%5.67%5.52%5.00%4.22%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)50.53
(-) Cash Dividends Paid (M)33.73
(=) Cash Retained (M)16.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.116.323.79
Cash Retained (M)16.8016.8016.80
(-) Cash Required (M)-10.11-6.32-3.79
(=) Excess Retained (M)6.7010.4913.01
(/) Shares Outstanding (M)3.403.403.40
(=) Excess Retained per Share1.973.083.83
LTM Dividend per Share9.929.929.92
(+) Excess Retained per Share1.973.083.83
(=) Adjusted Dividend11.8913.0113.75
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$350.46$536.93$935.56
Upside / Downside777.69%1,244.68%2,243.00%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)50.5353.8157.3161.0465.0069.2371.31
Payout Ratio66.75%71.40%76.05%80.70%85.35%90.00%92.50%
Projected Dividends (M)33.7338.4243.5849.2655.4862.3165.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)34.8935.2235.55
Year 2 PV (M)35.9536.6337.32
Year 3 PV (M)36.8937.9539.03
Year 4 PV (M)37.7439.1940.68
Year 5 PV (M)38.4940.3542.28
PV of Terminal Value (M)670.11702.48736.09
Equity Value (M)854.07891.82930.95
Shares Outstanding (M)3.403.403.40
Fair Value$251.27$262.37$273.89
Upside / Downside529.27%557.08%585.91%

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