Our $65 target price is derived through a 20-year NPV valuation and implies an 8.1x EV/EBITDA multiple on our 2027 estimates. Our NPV method assumes an 11% discount rate and a 10% cap rate.

Downside risks to our target price being achieved: declining refined product demand, lower margins, lack of growth opportunities, and a dilutive general partner transaction (i.e., IDR removal).