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Kinder Morgan Energy Partners LP (FRA:KM7) Gross Margin % : 58.30% (As of Sep. 2014)


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What is Kinder Morgan Energy Partners LP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kinder Morgan Energy Partners LP's Gross Profit for the three months ended in Sep. 2014 was €1,779 Mil. Kinder Morgan Energy Partners LP's Revenue for the three months ended in Sep. 2014 was €3,052 Mil. Therefore, Kinder Morgan Energy Partners LP's Gross Margin % for the quarter that ended in Sep. 2014 was 58.30%.


The historical rank and industry rank for Kinder Morgan Energy Partners LP's Gross Margin % or its related term are showing as below:

FRA:KM7' s Gross Margin % Range Over the Past 10 Years
Min: 31.95   Med: 93.1   Max: 98.37
Current: 56.6


During the past 13 years, the highest Gross Margin % of Kinder Morgan Energy Partners LP was 98.37%. The lowest was 31.95%. And the median was 93.10%.

FRA:KM7's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 28 vs FRA:KM7: 56.60

Kinder Morgan Energy Partners LP had a gross margin of 58.30% for the quarter that ended in Sep. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kinder Morgan Energy Partners LP was 10.60% per year.


Kinder Morgan Energy Partners LP Gross Margin % Historical Data

The historical data trend for Kinder Morgan Energy Partners LP's Gross Margin % 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.

* Premium members only.

Kinder Morgan Energy Partners LP Gross Margin % Chart

Kinder Morgan Energy Partners LP Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.18 55.35 58.58 65.40 58.44

Kinder Morgan Energy Partners LP Quarterly Data
Sep09 Dec09 Mar10 Jun10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.72 57.62 55.15 55.21 58.30

Competitive Comparison of Kinder Morgan Energy Partners LP's Gross Margin %

For the Oil & Gas Midstream subindustry, Kinder Morgan Energy Partners LP's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.


Kinder Morgan Energy Partners LP's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kinder Morgan Energy Partners LP's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kinder Morgan Energy Partners LP's Gross Margin % falls into.



Kinder Morgan Energy Partners LP Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kinder Morgan Energy Partners LP's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=5345.8 / 9146.9
=(Revenue - Cost of Goods Sold) / Revenue
=(9146.9 - 3801.11) / 9146.9
=58.44 %

Kinder Morgan Energy Partners LP's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=1779.4 / 3052.008
=(Revenue - Cost of Goods Sold) / Revenue
=(3052.008 - 1272.64) / 3052.008
=58.30 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Kinder Morgan Energy Partners LP  (FRA:KM7) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Kinder Morgan Energy Partners LP had a gross margin of 58.30% for the quarter that ended in Sep. 2014 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Kinder Morgan Energy Partners LP Gross Margin % Related Terms

Thank you for viewing the detailed overview of Kinder Morgan Energy Partners LP's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kinder Morgan Energy Partners LP (FRA:KM7) Business Description

Traded in Other Exchanges
N/A
Address
Kinder Morgan Energy Partners LP is a Delaware limited partnership formed in August 1992. The Company is engaged in pipeline transportation and energy storage company in North America. They own an interest in or operate approximately 52,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and its terminals store petroleum products, ethanol and chemicals, and handle such products as coal, petroleum coke and steel. They are also the producer and transporter of CO2, for enhanced oil recovery projects in North America. Its operations are conducted through our five operating limited partnerships and their subsidiaries and are grouped into five reportable business segments: Natural Gas Pipelines—consists of approximately 40,000 miles of natural gas transmission pipelines and gathering lines, plus natural gas storage, treating and processing facilities, through which natural gas is gathered, transported, stored, treated, processed and sold; O2—which produces, markets and transports, through approximately 1,500 miles of pipelines, CO2 to oil fields that use CO2 to increase production of oil; owns interests in and/or operate four primary oil fields in West Texas; and owns and operates a 450-mile crude oil pipeline system in West Texas; Products Pipelines—consists of approximately 9,000 miles of refined petroleum products and crude oil and condensate pipelines that deliver refined petroleum products (gasoline, diesel fuel and jet fuel), NGL, crude oil, condensate and bio-fuels to various markets; plus approximately 62 associated product terminals and petroleum pipeline transmix processing facilities serving customers across the U.S.; Terminals—consists of approximately 122 owned or operated liquids and bulk terminal facilities and approximately 10 rail transloading and materials handling facilities located throughout the U.S. and portions of Canada, which together transload, store and deliver a wide variety of bulk, petroleum, petrochemical and other liquids products for customers across the U.S. and Canada; and Kinder Morgan Canada—transports crude oil and refined petroleum products through approximately 800 miles of pipelines from Alberta, Canada to marketing terminals and refineries in British Columbia and the state of Washington; plus five associated product terminal facilities. The Company's business operations are subject to federal, state, provincial and local laws and regulations relating to environmental protection, pollution and human health and safety in the U.S. and Canada.

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