Plains All American Pipeline LP (Plains All American Pipeline LP) Interest Coverage

: 4.34 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Plains All American Pipeline LP's Operating Income for the three months ended in Dec. 2023 was $417 Mil. Plains All American Pipeline LP's Interest Expense for the three months ended in Dec. 2023 was $-96 Mil. Plains All American Pipeline LP's interest coverage for the quarter that ended in Dec. 2023 was 4.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Plains All American Pipeline LP's Interest Coverage or its related term are showing as below:

PAA' s Interest Coverage Range Over the Past 10 Years
Min: 1.97 Med: 3.46 Max: 5.17
Current: 3.52

PAA's Interest Coverage is ranked worse than
69.59% of 763 companies
in the Oil & Gas industry
Industry Median: 6.67 vs PAA: 3.52

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Plains All American Pipeline LP Interest Coverage Historical Data

The historical data trend for Plains All American Pipeline LP's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Plains All American Pipeline LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.74

1.97

3.40

3.85

3.52

Plains All American Pipeline LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.77	3.26	4.01	2.48	4.34

Competitive Comparison

For the Oil & Gas Midstream subindustry, Plains All American Pipeline LP's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Plains All American Pipeline LP Interest Coverage Distribution

For the Oil & Gas industry and Energy sector, Plains All American Pipeline LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Plains All American Pipeline LP's Interest Coverage falls into.

Plains All American Pipeline LP Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Plains All American Pipeline LP's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Plains All American Pipeline LP's Interest Expense was $-386 Mil. Its Operating Income was $1,358 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,579 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1358	/	-386
	=	3.52

Plains All American Pipeline LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Plains All American Pipeline LP's Interest Expense was $-96 Mil. Its Operating Income was $417 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,579 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	417	/	-96
	=	4.34

The higher the ratio, the stronger the company's Financial Strength is.

Plains All American Pipeline LP (NAS:PAA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Plains All American Pipeline LP Interest Coverage Related Terms

Thank you for viewing the detailed overview of Plains All American Pipeline LP's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Plains All American Pipeline LP (Plains All American Pipeline LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Plains All American Pipeline LP (NAS:PAA) » Definitions » Interest Coverage

Comparable Companies

WES AM ENLC DTM ETRN FRO STNG PAGP VNOM NS TSX:ENB EPD ET WMB OKE MPLX TSX:TRP KMI LNG TRGP

Traded in Other Exchanges

N/A

Address

333 Clay Street, Suite 1600, Houston, TX, USA, 77002

Website

https://www.plainsallamerican.com

Plains All American provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Plains' assets span the United States and Alberta, Canada, but are heavily concentrated in the Permian Basin.

Executives

Jeremy L. Goebel	officer: EVP & CCO	333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Ellen Desanctis	director	12326 OLD OAKS, HOUSTON TX 77024
Willie Cw Chiang	director, officer: Chairman & CEO	370 17TH STREET, SUITE 2775, DENVER CO 80202
Chris Herbold	officer: Sr. VP Finance and CAO	333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Richard K. Mcgee	officer: EVP, General Counsel & Sec.	333 CLAY STREET, SUITE 1500, HOUSTON TX 77002
Al Swanson	officer: EVP & CFO	333 CLAY STREET, # 1600, HOUSTON TX 77002
Kevin S Mccarthy	director	C/O KAYNE ANDERSON CAPITAL ADVISORS, LP, 1800 AVENUE OF THE STARS, SECOND FLOOR, LOS ANGELES CA 90067
Chris R. Chandler	officer: EVP & COO	333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Harry N Pefanis	director, officer: President	333 CLAY STREET, STE 1600, HOUSTON TX 77002
Plains Gp Holdings Lp	director, 10 percent owner	333 CLAY ST, SUITE 1600, HOUSTON TX 77002
Paa Gp Holdings Llc	director, 10 percent owner	333 CLAY ST, SUITE 1600, HOUSTON TX 77002
Plains All American Gp Llc	director, 10 percent owner	333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Plains Aap, L.p.	director, 10 percent owner	333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Chris Temple	director	3953 MAPLE AVENUE, SUITE 180, DALLAS TX 75219
Kayne Anderson Capital Advisors Lp	director, other: See remarks	2121 AVENUE OF THE STARS, 9TH FLOOR, LOS ANGELES CA 90067