Today I'm reviewing a large-cap oil & gas midstream firm by the name of Sanchez Midstream Partners LP. Its trading ticker symbol is SNMP.

Sanchez Midstream Partners LP is a US based company, focused on the acquisition, development, ownership and operation of midstream and other oil and gas producing assets.

It operates in two segments, Midstream and Production. The Midstream segment engages in gathering, processing, and transporting natural gas, NGLs, and oil. 

The Production segment is involved in the production of crude oil and natural gas. As of December 31, 2017, this segment had total estimated proved reserves of approximately 5.3 million barrels of oil equivalent. The company also owns production assets in Texas, Louisiana, and Oklahoma. 

Sanchez Midstream Partners GP LLC serves as the general partner of the company. The company was formerly known as Sanchez Production Partners LP and changed its name to Sanchez Midstream Partners LP in June 2017.

Sanchez Midstream Partners LP was founded in 2005 and is headquartered in Houston, Texas.

I use three key data points to gauge the value of any dividend equity or fund like Sanchez Midstream Partners LP. (SNMP): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

SNMP Price

Sanchez's price per share was $11.20 at yesterday's market close. A year ago its price was $9.90 for a gain of $1.30 per share.  

Assuming Sanchez's price will trade in the range of $9.50 to $13.50 next year, that $1.30 gain would take its current $11.20 price to $12.50 by early August, 2019. 

SNMP Dividends

Sanchez's most recent quarterly dividend was $0.45declared May 8and paidMay 31.

At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $1.80yielding16% at yesterday's closing $11.20 price.

Gains For SNMP?

Adding the $1.80 estimated annual dividend to the $1.30year over year theoretical price gain for Sanchez makes a $3.10gross annual per share gain, which will be reduced by costs to trade the shares.  

A little over $1,000.00 invested today at the $11.20 recent price buys 89 Sanchez Midstream Partners LP shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.11 per share, subtracting that $0.11 brokerage cost from the estimated $3.10 gross gain leaves a net gain of $2.99 X 89 shares = $266.411 or a 26.7% net gain on a $996.80 investment.

Therefore, Sanchez Midstream Partners LP, whose trading ticker symbol is SNMP, now shows a possible 24.7% net gain including a 16% dividend yield. 

Four analysts cover this stock:

Two say "buy"

One says SNMP will "outperform" its peers.

One rates it "hold".

So, the analyst consensus recommendation is 1.75 or "outperform".

The price target set by those four brokers is $3.02 above the $12.50 year over year price target I stated. 

Y Charts has data too. Y Charts has rated SNMP "avoid" for an overall "Y" rating; it has "weak for a Fundamental mark as well as "73.68% over" for aHistoric Valuation score based on a historic $6.45 valuation per share.

So, you could look at all those conflicting numbers this way, Sanchez Midstream Partners LP.(SNMP) has made money, is making money, and could net a 24.7%gain including a 16% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be far higher or lower. More study is required for you to determine ifSanchez Midstream Partners LP.(SNMP) is worth your time and money.