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Western Midstream Partners LP Interest Coverage

: 3.12 (As of Jun. 2021)
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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. Western Midstream Partners LP's Operating Income for the three months ended in Jun. 2021 was $288 Mil. Western Midstream Partners LP's Interest Expense for the three months ended in Jun. 2021 was $-92 Mil. Western Midstream Partners LP's interest coverage for the quarter that ended in Jun. 2021 was 3.12. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Western Midstream Partners LP interest coverage is 3.13, which is low.

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

NYSE:WES' s Interest Coverage Range Over the Past 10 Years
Min: 3.13   Med: 5.18   Max: 9.79
Current: 3.13

3.13
9.79

NYSE:WES's Interest Coverage is ranked lower than
69% of the 318 Companies
in the Oil & Gas industry.

( Industry Median: 10.78 vs. NYSE:WES: 3.13 )

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


Western Midstream Partners LP Interest Coverage Historical Data

The historical data trend for Western Midstream 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.

* Premium members only.

Western Midstream Partners LP Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.86 5.23 5.12 3.44 3.51

Western Midstream Partners LP Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 3.64 3.49 3.21 2.69 3.12

Competitive Comparison

For the Oil & Gas Midstream subindustry, Western Midstream 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.

   

Western Midstream Partners LP Interest Coverage Distribution

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

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



Western Midstream 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.


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

Western Midstream Partners LP's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Western Midstream Partners LP's Interest Expense was $-367 Mil. Its Operating Income was $1,288 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,416 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*1288.435/-366.557
=3.51

Western Midstream Partners LP's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Western Midstream Partners LP's Interest Expense was $-92 Mil. Its Operating Income was $288 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,836 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*287.795/-92.111
=3.12

* 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.


Western Midstream Partners LP  (NYSE:WES) 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 .


Western Midstream Partners LP Interest Coverage Related Terms

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


Western Midstream Partners LP Business Description

Western Midstream Partners LP logo
Industry
Energy » Oil & Gas NAICS : 213112 SIC : 1389
Traded in Other Exchanges
N/A
Address
9950 Woodloch Forest Drive, Suite 2800, The Woodlands, TX, USA, 77380
Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas.
Executives
Stewart Lisa A director EL PASO CORPORATION 1001 LOUISIANA STREET HOUSTON TX 77002
Schulte David J director 233 WEST 47TH ST. KANSAS CITY MO 64112
Owen Kenneth F. director 15631 JACINTOPORT BLVD. HOUSTON TX 77015
Oxy Oil Partners, Inc. 10 percent owner 5 GREENWAY PLAZA, SUITE 110 HOUSTON TX 77046
Occidental Permian Manager Llc 10 percent owner 5 GREENWAY PLAZA, SUITE 110 HOUSTON TX 77046
Baseball Merger Sub 2, Inc. 10 percent owner 5 GREENWAY PLAZA, SUITE 110 HOUSTON TX 77046
Wgr Asset Holding Co Llc 10 percent owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Kerr-mcgee Worldwide Corp other: Former 10% Owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Apc Midstream Holdings, Llc 10 percent owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Anadarko E&p Onshore Llc other: Former 10% Owner 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Western Gas Resources Inc 10 percent owner 1099 18TH STREET, SUITE 1200 DENVER CO 80202-1955
Anadarko Petroleum Corp 10 percent owner 1201 LAKE ROBBINS DR. THE WOODLANDS TX 77380
Occidental Petroleum Corp /de/ 10 percent owner 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Oxy Usa Inc 10 percent owner 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Bourne Robert W. officer: SVP & Chief Commercial Officer 1400 16TH STREET SUITE 310 DENVER CO 80202

Western Midstream Partners LP Headlines

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