Rose Rock Midstream LP (Rose Rock Midstream LP) Interest Coverage : 1.80 (As of Jun. 2016)

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What is Rose Rock Midstream LP Interest Coverage?

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. Rose Rock Midstream LP's Operating Income for the three months ended in Jun. 2016 was $22.4 Mil. Rose Rock Midstream LP's Interest Expense for the three months ended in Jun. 2016 was $-12.4 Mil. Rose Rock Midstream LP's interest coverage for the quarter that ended in Jun. 2016 was 1.80. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Rose Rock Midstream LP's Interest Coverage or its related term are showing as below:

RRMS's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.74
* Ranked among companies with meaningful Interest Coverage only.

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

Rose Rock Midstream LP Interest Coverage Historical Data

The historical data trend for Rose Rock Midstream 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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Rose Rock Midstream LP Interest Coverage Chart

Rose Rock Midstream LP Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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13.64

13.56

5.58

3.96

2.15

Rose Rock Midstream LP Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Interest Coverage	Get a 7-Day Free Trial															2.67	2.31	1.12	3.13	1.80

Competitive Comparison of Rose Rock Midstream LP's Interest Coverage

For the Oil & Gas Integrated subindustry, Rose Rock Midstream 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.

Rose Rock Midstream LP's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Rose Rock Midstream LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rose Rock Midstream LP's Interest Coverage falls into.

Rose Rock Midstream 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.

Rose Rock Midstream LP's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, Rose Rock Midstream LP's Interest Expense was $-43.2 Mil. Its Operating Income was $92.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $744.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	92.823	/	-43.188
	=	2.15

Rose Rock Midstream LP's Interest Coverage for the quarter that ended in Jun. 2016 is calculated as

Here, for the three months ended in Jun. 2016, Rose Rock Midstream LP's Interest Expense was $-12.4 Mil. Its Operating Income was $22.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $774.5 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2016 )	/	Interest Expense (Q: Jun. 2016 )
	=	-1	*	22.356	/	-12.434
	=	1.80

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

Rose Rock Midstream LP (NYSE:RRMS) 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 .

Rose Rock Midstream LP Interest Coverage Related Terms

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

Rose Rock Midstream LP (Rose Rock Midstream LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Rose Rock Midstream LP (NYSE:RRMS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.rrmidstream.com

Rose Rock Midstream LP is a Delaware limited partnership formed in 2011. The Company is engaged in the business of crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. We operate in the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin ("DJ Basin") and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and Mississippi Lime Play in the Mid-Continent region. The Company's operating business segments are Transportation, Facilities, and Supply & Logistics. The Transportation segment operates crude oil pipelines and truck transportation businesses. The Facilities segment operates crude oil storage and terminal businesses. The Supply and Logistics segment operates a crude oil marketing business which utilizes our Transportation and Facilities assets for marketing purposes. Its competitors include Cushing include Blueknight Energy Partners, L.P., Enbridge Energy Partners, L.P., Enterprise Products Partners L.P., Magellan Midstream Partners, L.P. and Plains All American Pipeline, L.P. The Company' operations are subject to extensive regulation.

Executives

Carlin G. Conner	director, officer: President and CEO of GP	6120 SOUTH YALE AVE., SUITE 1500, TULSA OK 74136
Ronald A Ballschmiede	director	1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380
Semgroup Corp	director, 10 percent owner	TWO WARREN PLACE, 6120 SOUTH YALE AVENUE, SUITE 1500, TULSA OK 74136-4231
Candice L Cheeseman	officer: VP and General Counsel of GP	6120 SOUTH YALE AVE., SUITE 1500, TULSA OK 74136
Peter L Schwiering	director, officer: COO of GP	6120 SOUTH YALE AVENUE, SUITE 700, TULSA OK 74136
Mark E Monroe	director	7130 S LEWIS 10TH FL, TULSA OK 74136
Paul Largess	officer: VP, CAO & Controller of GP	6120 S YALE STE 700, TULSA OK 74136
Norman J Szydlowski	director, officer: Pres., CEO & Director of GP	6120 S. YALE, SUITE 700, TULSA OK 74136

Rose Rock Midstream LP (Rose Rock Midstream LP) Headlines

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