Plains GP Holdings LP (Plains GP Holdings LP) Interest Coverage

: 4.32 (As of Dec. 2023)

View and export this data going back to 2013. Start your Free Trial

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. Plains GP Holdings LP's Operating Income for the three months ended in Dec. 2023 was $415 Mil. Plains GP Holdings LP's Interest Expense for the three months ended in Dec. 2023 was $-96 Mil. Plains GP Holdings LP's interest coverage for the quarter that ended in Dec. 2023 was 4.32. The higher the ratio, the stronger the company's financial strength is.

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

PAGP' s Interest Coverage Range Over the Past 10 Years
Min: 1.95 Med: 3.43 Max: 5.02
Current: 3.49

PAGP's Interest Coverage is ranked worse than
70.22% of 759 companies
in the Oil & Gas industry
Industry Median: 6.72 vs PAGP: 3.49

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

Plains GP Holdings LP Interest Coverage Historical Data

The historical data trend for Plains GP Holdings 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.

* Premium members only.

Plains GP Holdings LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.72

1.95

3.37

3.83

3.49

Plains GP Holdings 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																2.75	3.23	3.98	2.46	4.32

Competitive Comparison

For the Oil & Gas Midstream subindustry, Plains GP Holdings 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.

Plains GP Holdings LP Interest Coverage Distribution

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

* The bar in red indicates where Plains GP Holdings LP's Interest Coverage falls into.

Plains GP Holdings 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.

Plains GP Holdings LP's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Plains GP Holdings LP's Interest Expense was $-386 Mil. Its Operating Income was $1,349 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,579 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1349	/	-386
	=	3.49

Plains GP Holdings LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Plains GP Holdings LP's Interest Expense was $-96 Mil. Its Operating Income was $415 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,579 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	415	/	-96
	=	4.32

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

Plains GP Holdings LP (NAS:PAGP) 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 .

Plains GP Holdings LP Interest Coverage Related Terms

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

Plains GP Holdings LP (Plains GP Holdings LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Plains GP Holdings LP (NAS:PAGP) » Definitions » Interest Coverage

Comparable Companies

STNG CEQP HEP GLNG INSW ETRN NS VNOM HESM KNTK TSX:ENB EPD WMB ET LNG OKE MPLX KMI TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

333 Clay Street, Suite 1600, Houston, TX, USA, 77002

Website

https://www.plains.com

Plains All American provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Plains' assets span the United States and Alberta, Canada, but are heavily concentrated in the Permian Basin.

Executives

Willie Cw Chiang	director, officer: Chairman & CEO	370 17TH STREET, SUITE 2775, DENVER CO 80202
Jeremy L. Goebel	officer: EVP & CCO	333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Ellen Desanctis	director	12326 OLD OAKS, HOUSTON TX 77024
Kevin S Mccarthy	director	C/O KAYNE ANDERSON CAPITAL ADVISORS, LP, 1800 AVENUE OF THE STARS, SECOND FLOOR, LOS ANGELES CA 90067
Gary R Petersen	director	210 HEDWIG, HOUSTON TX 77019
Victor Burk	director	C/O ENERVEST MANAGEMENT PARTNERS LTD, 1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Lawrence Michael Ziemba	director	600 NORTH DAIRY ASHFORD, HOUSTON TX 77079
John T Raymond	director	THE ENERGY & MINERALS GROUP, 811 MAIN STREET, SUITE 4200, HOUSTON TX 77002
Alexandra Pruner	director	1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Bobby S Shackouls	director	5051 WESTHEIMER, STE 1400, HOUSTON TX 77056-5604
Chris Temple	director	3953 MAPLE AVENUE, SUITE 180, DALLAS TX 75219
Emg Investment, Llc	director, See Remarks	1401 MCKINNEY STREET, SUITE 1025, HOUSTON TX 77010
Robert V Sinnott	director	1800 AVENUE OF THE STARS, 3RD FLOOR, LOS ANGELES CA 90067
Greg L Armstrong	director, 10 percent owner, officer: Chairman & CEO
Harry N Pefanis	officer: President & COO	333 CLAY STREET, STE 1600, HOUSTON TX 77002