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Energy Transfer LP Interest Coverage

: 3.66 (As of Jun. 2022)
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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. Energy Transfer LP's Operating Income for the three months ended in Jun. 2022 was $2,113 Mil. Energy Transfer LP's Interest Expense for the three months ended in Jun. 2022 was $-578 Mil. Energy Transfer LP's interest coverage for the quarter that ended in Jun. 2022 was 3.66. The higher the ratio, the stronger the company's financial strength is.

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

ET' s Interest Coverage Range Over the Past 10 Years
Min: 1.34   Med: 2.02   Max: 3.89
Current: 3.29


ET's Interest Coverage is ranked worse than
75.34% of 738 companies
in the Oil & Gas industry
Industry Median: 9.97 vs ET: 3.29

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


Energy Transfer LP Interest Coverage Historical Data

The historical data trend for Energy Transfer 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.

* Premium members only.

Energy Transfer LP Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.96 2.84 3.12 2.52 3.89

Energy Transfer LP Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 2.84 2.58 3.07 3.84 3.66

Competitive Comparison

For the Oil & Gas Midstream subindustry, Energy Transfer 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.

   

Energy Transfer LP Interest Coverage Distribution

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

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



Energy Transfer 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.


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

Energy Transfer LP's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Energy Transfer LP's Interest Expense was $-2,267 Mil. Its Operating Income was $8,813 Mil. And its Long-Term Debt & Capital Lease Obligation was $49,836 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*8813/-2267
=3.89

Energy Transfer LP's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Energy Transfer LP's Interest Expense was $-578 Mil. Its Operating Income was $2,113 Mil. And its Long-Term Debt & Capital Lease Obligation was $48,905 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2113/-578
=3.66

* 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.

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


Energy Transfer LP  (NYSE:ET) 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 .


Energy Transfer LP Interest Coverage Related Terms

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


Energy Transfer LP Business Description

Energy Transfer LP logo
Traded in Other Exchanges
Address
8111 Westchester Drive, Suite 600, Dallas, TX, USA, 75225
Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region. It also has gathering and processing facilities, one of the largest fractionation facilities in the U.S., and fuel distribution. Energy Transfer also owns the Lake Charles gas liquefaction facility. It combined its publicly traded limited and general partnerships in October 2018.
Executives
Whitehurst Bradford D. officer: CFO 100 CONGRESS AVENUE SUITE 450 AUSTIN TX 78701
Perry James Richard director 1108 LAVACA, SUITE 110 #143 AUSTIN TX 78701
Washburne Ray W director 47 HIGHLAND PARK VILLAGE SUITE 200 DALLAS TX 75205
Sturrock Troy officer: SVP & Controller 1039 NORTH OAK CLIFF BOULEVARD DALLAS TX 75208
Grimm Michael K director 3141 HOOD STREET, SUITE 350 DALLAS TX 75219
Anderson Steven R. director 1818 MARKET STREET SUITE 1500 PHILADELPHIA PA 19103
Brannon Richard D director C/O CH4 ENERGY SIX, LLC 5128 APACHE PLUME ROAD, SUITE 300 FORT WORTH TX 76109
Mcreynolds John W director, officer: President 1601 BRYAN ST 30TH FL DALLAS TX 75201
Warren Kelcy L director, 10 percent owner
Mccrea Marshall S Iii director, officer: See Remarks
Ramsey Matthew S. director 6002 DEERWOOD HOUSTON TX 77057
Long Thomas E officer: Chief Financial Officer 370 17TH STREET SUITE 2775 DENVER CO 80202
Mason Thomas P officer: EVP and General Counsel 3738 OAK LAWN AVE DALLAS TX 75219
Collins Ted Jr director 508 W. WALL AVE. SUITE 1200 MIDLAND TX 79701-5076
Williams William Presley director 2126 CLEAR LAKE ROAD WEATHERFORD TX 76087

Energy Transfer LP Headlines

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By Zacks 2022-02-18

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