NGL Energy Partners LP (NGL Energy Partners LP) Interest Coverage : 1.90 (As of Dec. 2023)

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What is NGL Energy Partners 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. NGL Energy Partners LP's Operating Income for the three months ended in Dec. 2023 was $101 Mil. NGL Energy Partners LP's Interest Expense for the three months ended in Dec. 2023 was $-53 Mil. NGL Energy Partners LP's interest coverage for the quarter that ended in Dec. 2023 was 1.90. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for NGL Energy Partners LP's Interest Coverage or its related term are showing as below:

NGL' s Interest Coverage Range Over the Past 10 Years
Min: 0.46 Med: 1.35 Max: 1.87
Current: 1.69

NGL's Interest Coverage is ranked worse than
85.41% of 761 companies
in the Oil & Gas industry
Industry Median: 6.72 vs NGL: 1.69

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

NGL Energy Partners LP Interest Coverage Historical Data

The historical data trend for NGL Energy Partners 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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NGL Energy Partners LP Interest Coverage Chart

NGL Energy Partners LP Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

0.98

1.52

0.46

0.70

1.45

NGL Energy Partners 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	Get a 7-Day Free Trial															1.55	1.70	1.28	1.88	1.90

Competitive Comparison of NGL Energy Partners LP's Interest Coverage

For the Oil & Gas Midstream subindustry, NGL Energy Partners 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.

NGL Energy Partners LP's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where NGL Energy Partners LP's Interest Coverage falls into.

NGL Energy Partners 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.

NGL Energy Partners LP's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, NGL Energy Partners LP's Interest Expense was $-259 Mil. Its Operating Income was $376 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,916 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	376.051	/	-258.708
	=	1.45

NGL Energy Partners LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, NGL Energy Partners LP's Interest Expense was $-53 Mil. Its Operating Income was $101 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,755 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	100.999	/	-53.05
	=	1.90

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

NGL Energy Partners LP (NYSE:NGL) 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 .

NGL Energy Partners LP Interest Coverage Related Terms

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

NGL Energy Partners LP (NGL Energy Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » NGL Energy Partners LP (NYSE:NGL) » Definitions » Interest Coverage

Comparable Companies

BROG TK TNP EE OSG GPP SMLP PBT BPT MMLP TSX:ENB EPD WMB ET LNG OKE MPLX KMI TSX:TRP CQP

Traded in Other Exchanges

NGLpC.PFD:USA NGLpB.PFD:USA

Address

6120 South Yale Avenue, Suite 805, Tulsa, OK, USA, 74136

Website

https://www.nglenergypartners.com

NGL Energy Partners LP is a us-based firm that owns and operates a vertically integrated energy business. The company's operating segments include Crude Oil Logistics, Water Solutions, and Liquids Logistics. It operates crude oil storage terminals, and owns pipeline injection stations and offers services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. The firm also supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants and sells propane and distillates.

Executives

Bradley P Cooper	officer: CFO & EVP	6120 S YALE AVE SUITE 805, TULSA OK 74136
H Michael Krimbill	director, officer: CEO	8801 S YALE STE 310, TULSA OK 74137
Derek S Reiners	director	100 W. 5TH ST., TULSA OK 74103
James M Collingsworth	director	1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
John Ciolek	officer: Exec. Vice President	6120 S. YALE AVE., SUITE 805, TULSA OK 74136
Kurston Patrick Mcmurray	officer: GC, SVP and Secretary	6120 S. YALE AVE., SUITE 805, TULSA OK 74136
Linda J Bridges	officer: CFO & EVP	6120 S. YALE AVE., SUITE 805, TULSA OK 74136
Eig Neptune Equity Aggregator, L.p.	10 percent owner	600 NEW HAMPSHIRE AVE NW, SUITE 1200, WASHINGTON DC 20037
Karlovich Robert W Iii	officer: CFO, Exec. VP and Treasurer	ATLAS PIPELINE PARTNERS, GP, 110 W. 7TH, SUITE 2300, TULSA OK 74119
Brian P. Boland	director	1700 PENNSYLVANIA AVE NW, SUITE 800, WASHINGTON DC 20006
John T Raymond	10 percent owner	THE ENERGY & MINERALS GROUP, 811 MAIN STREET, SUITE 4200, HOUSTON TX 77002
Highstar Capital Ngl Co-invest Manager Llc	10 percent owner	1301 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Highstar Ngl Main Interco Llc	10 percent owner	1301 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Highstar Capital Gp Iv Holdings	10 percent owner	1301 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019
Ngl Civ A, Llc	10 percent owner	1301 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10019