Regency Energy Partners LP (FRA:R3P) Gross Margin % : 34.48% (As of Dec. 2014)

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What is Regency Energy Partners LP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Regency Energy Partners LP's Gross Profit for the three months ended in Dec. 2014 was €399 Mil. Regency Energy Partners LP's Revenue for the three months ended in Dec. 2014 was €1,157 Mil. Therefore, Regency Energy Partners LP's Gross Margin % for the quarter that ended in Dec. 2014 was 34.48%.

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

FRA:R3P's Gross Margin % is not ranked ^*
in the Oil & Gas industry.
Industry Median: 28
* Ranked among companies with meaningful Gross Margin % only.

Regency Energy Partners LP had a gross margin of 34.48% for the quarter that ended in Dec. 2014 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Regency Energy Partners LP was 0.00% per year.

Regency Energy Partners LP Gross Margin % Historical Data

The historical data trend for Regency 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.

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Regency Energy Partners LP Gross Margin % Chart

Regency Energy Partners LP Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Gross Margin %

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29.36

30.65

28.88

30.28

Regency Energy Partners LP Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Gross Margin %	Get a 7-Day Free Trial															28.51	26.07	29.71	29.13	34.48

Competitive Comparison of Regency Energy Partners LP's Gross Margin %

For the Oil & Gas Midstream subindustry, Regency 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.

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

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

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

Regency Energy Partners LP Gross Margin % Calculation

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

Regency Energy Partners LP's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )	=	Gross Profit (A: Dec. 2014 )	/	Revenue (A: Dec. 2014 )
	=	1215.7	/	4015.261
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4015.261 - 2799.572)	/	4015.261
	=	30.28 %

Regency Energy Partners LP's Gross Margin for the quarter that ended in Dec. 2014 is calculated as

Gross Margin % (Q: Dec. 2014 )	=	Gross Profit (Q: Dec. 2014 )	/	Revenue (Q: Dec. 2014 )
	=	399	/	1157.297
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1157.297 - 758.285)	/	1157.297
	=	34.48 %

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.

Regency Energy Partners LP (FRA:R3P) 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

Regency Energy Partners LP had a gross margin of 34.48% for the quarter that ended in Dec. 2014 => Competition eroding margins

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.

Regency Energy Partners LP Gross Margin % 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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