Inergy Midstream LP (Inergy Midstream LP) ROC % : 0.16% (As of Jun. 2015)

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What is Inergy Midstream LP ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Inergy Midstream LP's annualized return on capital (ROC %) for the quarter that ended in Jun. 2015 was 0.16%.

As of today (2024-05-01), Inergy Midstream LP's WACC % is 0.00%. Inergy Midstream LP's ROC % is 1.08% (calculated using TTM income statement data). Inergy Midstream LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.

Inergy Midstream LP ROC % Historical Data

The historical data trend for Inergy Midstream LP's ROC % 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.

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Inergy Midstream LP ROC % Chart

Inergy Midstream LP Annual Data

Trend

Sep09

Sep10

Sep11

Sep12

Dec13

Dec14

ROC %

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5.63

8.02

7.54

1.67

1.50

Inergy Midstream LP Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
ROC %	Get a 7-Day Free Trial															2.67	3.07	-2.17	3.11	0.16

Inergy Midstream LP ROC % Calculation

Inergy Midstream LP's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	90.9 * ( 1 - -3.3% )	/	( (6183.9	+	6350.4)	/ 2 )
=	93.8997	/	6267.15
=	1.50 %

where

	Invested Capital		(A: Dec. 2013 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6401.8	-	307.4	-	( 2.7	-	max(0, 314.5	-	225	+	2.7	))
=	6183.9

	Invested Capital		(A: Dec. 2014 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6596.5	-	241.5	-	( 4.6	-	max(0, 255.1	-	273.1	+	4.6	))
=	6350.4

Inergy Midstream LP's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2015 is calculated as:

	ROC % (Q: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2015 )	+	Invested Capital (Q: Jun. 2015 ))	/ count )
=	10.4 * ( 1 - -0.24% )	/	( (6372.5	+	6324.8)	/ 2 )
=	10.42496	/	6348.65
=	0.16 %

where

	Invested Capital		(Q: Mar. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6612.7	-	173.4	-	( 66.8	-	max(0, 221.7	-	292.2	+	66.8	))
=	6372.5

	Invested Capital		(Q: Jun. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6501.2	-	176.2	-	( 0.2	-	max(0, 198.7	-	257.9	+	0.2	))
=	6324.8

Note: The Operating Income data used here is four times the quarterly (Jun. 2015) data.

Inergy Midstream LP (NYSE:NRGM) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Inergy Midstream LP's WACC % is 0.00%. Inergy Midstream LP's ROC % is 1.08% (calculated using TTM income statement data). Inergy Midstream LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Inergy Midstream LP ROC % Related Terms

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Inergy Midstream LP (Inergy Midstream LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Inergy Midstream LP (NYSE:NRGM) » Definitions » ROC %

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Address

Website

http://www.crestwoodlp.com

Crestwood Midstream Partners LP, formerly known as Inergy Midstream, L.P., is a Delaware limited partnership formed in November 2011. The Company develops, acquires, owns and operates fee-based assets and operations within the energy midstream sector. The Company owns and operates a diversified portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect energy supply with energy demand across North America. The Company has three reporting segments: Gathering and Processing, NGL and crude services, and Storage and Transportation. The Gathering and Processing operations engage in the gathering, processing, treating, compression, transportation and sales of natural gas and the delivery of NGLs. In Gathering and Processing, the Company provides natural gas gathering, processing, treating and compression services to producers in unconventional shale plays located in West Virginia, Wyoming, Texas, Arkansas, New Mexico and Louisiana. The Company owns rich gas systems in the Marcellus, Powder River Basin, Niobrara, Barnett, Granite Wash, and Avalon/Bone Spring Shale plays, and dry gas gathering systems in the Barnett, Fayetteville and Haynesville/Bossier Shale plays. The NGL and crude services operations provide gathering, storage and transportation services to producers, refiners, marketers, and others that effectively provide flow assurances to customers, as well as the production and sale of salt products. Operations in NGL and Crude segment include crude oil rail terminals, the Arrow gathering system, an NGL storage facility, and U.S Salt, LLC. The Storage and Transportation operations provide natural gas storage and transportations services to third parties. The corporate operations include all general and administrative expenses that are not allocated to the reportable segments. The Company owns and operates four natural gas storage facilities located in New York and Pennsylvania that have an aggregate working gas storage capacity of approximately 41.0 Bcf namely Stagecoach, Thomas Corners, Steuben, and Seneca Lake. Further, the Company owns natural gas transportation facilities located in New York and Pennsylvania namely North-South Facilities, MARC I Pipeline, and East Pipeline. Sales of crude oil, NGLs and salt are recognized at the time product is shipped or delivered to the customer depending on the sales terms. The Company is expanding its gathering and compression facilities in the Marcellus Shale.

Executives

John J Sherman	director	C/O CRESTWOOD EQUITY PARTNERS LP, 811 MAIN ST., SUITE 3400, HOUSTON TX 77002
Crestwood Gas Services Holdings Llc	director, 10 percent owner	717 TEXAS AVENUE, SUITE 3150, HOUSTON TX 77002
Crestwood Holdings Llc	director, 10 percent owner	717 TEXAS AVENUE, SUITE 3150, HOUSTON TX 77002
Fr Xi Cmp Holdings Llc	director, 10 percent owner	ONE LAFAYETTE PLACE, GREENWICH CT 06830
Crestwood Holdings Ii Llc	director, 10 percent owner	811 MAIN STREET, SUITE 3400, HOUSTON TX 77002
Crestwood Holdings Partners, Llc	director, 10 percent owner	717 TEXAS AVENUE, SUITE 3150, HOUSTON TX 77002
Fr Midstream Holdings Llc	director, 10 percent owner	ONE LAFAYETTE PLACE, THIRD FLOOR, GREENWICH CT 06830
First Reserve Gp Xi, L.p.	director, 10 percent owner	262 HARBOR DRIVE, THIRD FLOOR, STAMFORD CT 06902
First Reserve Gp Xi, Inc.	director, 10 percent owner	262 HARBOR DRIVE, THIRD FLOOR, STAMFORD CT 06902
William C Gautreaux	officer: President, Liquids and Crude
Michael Gordon France	director	600 TRAVIS STREET, SUITE 6000, HOUSTON TX 77002
David Lumpkins	director	600 TRAVIS STREET, SUITE 3250, HOUSTON TX 77002
William E Macaulay	director, 10 percent owner	290 HARBOR DRIVE, FIFTH FLOOR, STAMFORD CT 06902
J Heath Deneke	officer: Chief Operating Officer	700 LOUISIANA STREET, SUITE 2550, HOUSTON TX 77002
Warren H Gfeller	director

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