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Energy Transfer LP Financial Strength

: 4 (As of Jun. 2022)
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Energy Transfer LP has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Energy Transfer LP's Interest Coverage for the quarter that ended in Jun. 2022 was 3.66. Energy Transfer LP's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.47. As of today, Energy Transfer LP's Altman Z-Score is 1.32.


Competitive Comparison

For the Oil & Gas Midstream subindustry, Energy Transfer LP's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Energy Transfer LP's Financial Strength falls into.



Energy Transfer LP Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

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

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

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

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Energy Transfer LP's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(46 + 48905) / 103780
=0.47

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Energy Transfer LP has a Z-score of 1.32, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.32 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Energy Transfer LP  (NYSE:ET) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Energy Transfer LP has the Financial Strength Rank of 4.


Energy Transfer LP Financial Strength Related Terms

Thank you for viewing the detailed overview of Energy Transfer LP's Financial Strength 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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Company News for Feb 18, 2022

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