Regency Energy Partners LP (FRA:R3P) Degree of Financial Leverage : 0.00 (As of Dec. 2014)

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What is Regency Energy Partners LP Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Regency Energy Partners LP's Degree of Financial Leverage for the quarter that ended in Dec. 2014 was 0.00. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Regency Energy Partners LP's Degree of Financial Leverage or its related term are showing as below:

FRA:R3P's Degree of Financial Leverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Financial Leverage only.

Regency Energy Partners LP Degree of Financial Leverage Historical Data

The historical data trend for Regency Energy Partners LP's Degree of Financial Leverage 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.

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Regency Energy Partners LP Degree of Financial Leverage Chart

Regency Energy Partners LP Annual Data

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Degree of Financial Leverage

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Regency Energy Partners LP Quarterly Data
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Competitive Comparison of Regency Energy Partners LP's Degree of Financial Leverage

For the Oil & Gas Midstream subindustry, Regency Energy Partners LP's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.

Regency Energy Partners LP's Degree of Financial Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Regency Energy Partners LP's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Regency Energy Partners LP's Degree of Financial Leverage falls into.

Regency Energy Partners LP Degree of Financial Leverage Calculation

Regency Energy Partners LP's Degree of Financial Leverage for the quarter that ended in Dec. 2014 is calculated as:

Degree of Financial Leverage	=	% Change in Earnings per Share (Diluted)^**	/	% Change in EBIT
	=	( -0.462 (Dec. 2014) / 0.124 (Dec. 2013) - 1 )	/	( -13.787 (Dec. 2014) / 40.15 (Dec. 2013) - 1 )
	=	-4.7258	/	-1.3434
	=	3.52^***

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Regency Energy Partners LP (FRA:R3P) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.

Regency Energy Partners LP Degree of Financial Leverage Related Terms

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Regency Energy Partners LP (FRA:R3P) Business Description

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Regency Energy Partners LP was incorporated in Delaware on September 8, 2005. The Company is engaged in the gathering and processing, compression, treating and transportation of natural gas and the transportation, fractionation and storage of NGLs. Its assets are mainly located in Texas, Louisiana, Arkansas, Pennsylvania, California, Mississippi, Alabama, New Mexico and the mid-continent region of the United States, which includes Kansas, Colorado and Oklahoma. The Company is divided into five business segments; Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services and Corporate. The Gathering and Processing - provide "wellhead-to-market" services to producers of natural gas, which include transporting raw natural gas from the wellhead through gathering systems, processing raw natural gas to separate NGLs from the raw natural gas and selling or delivering the pipeline-quality natural gas and NGLs to various markets and pipeline systems. Natural Gas Transportation, NGL Services, Contract Services - owns and operates a fleet of compressors used to provide turn-key natural gas compression services for customer specific systems and Corporate comprises of corporate offices. It operates gathering and processing assets in four geographic regions of the United States: North Louisiana, the mid-continent region of the United States, south Texas and west Texas. The pipeline-quality natural gas remaining after separation of NGLs through processing is either returned to the producer or sold, for its own account or for the account of the producer, at the tailgates of its processing plants for delivery to interstate or intrastate gas transportation pipelines. The Company faces competition in each region in acquiring new gas supplies. The Company is subject to rules and regulations set forth by the Louisiana Department of Natural Resources.

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