What is MarkWest Energy Partners LP Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, MarkWest Energy Partners LP's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of MarkWest Energy Partners LP's Probability of Financial Distress (%)
For the Oil & Gas Midstream subindustry, MarkWest Energy Partners LP's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
MarkWest Energy Partners LP's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, MarkWest Energy Partners LP's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where MarkWest Energy Partners LP's Probability of Financial Distress (%) falls into.
MarkWest Energy Partners LP Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
MarkWest Energy Partners LP (MarkWest Energy Partners LP) Business Description
Traded in Other Exchanges
N/A
Address
MarkWest Energy Partners LP a Delaware corporation was formed in Delaware on January 24, 2002. The Company is engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; and the gathering and transportation of crude oil. The Company has presence in many unconventional gas plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation. The Company conducts operations in the following operating segments: Marcellus, Utica, Northeast and Southwest. Its primary business is to provide top-tier midstream services by developing and operating high-quality, strategically located assets in the liquids-rich areas of six core natural gas producing resource plays in the United States. The Company provides services in the midstream sector of the natural gas industry. The midstream natural gas industry is the link between the exploration for and production of natural gas and the delivery of its hydrocarbon components to end-use markets. In the Marcellus segment, it provides fully integrated natural gas midstream services in southwestern Pennsylvania and northern West Virginia through its wholly owned subsidiary, MarkWest Liberty Midstream. The Company operates five processing complexes in its Marcellus segment that include the Houston Complex located in Washington County, Pennsylvania: the Majorsville Complex located in Marshall County, West Virginia; the Mobley Complex located in Wetzel County, West Virginia; the Sherwood Complex located in Doddridge County, West Virginia; and the Keystone Complex located in Butler County, Pennsylvania. In addition, it operates two gathering systems: one currently delivering over 475 MMcf/d of natural gas to its Houston and Majorsville Complexes and the other delivering over 74 MMcf/d of natural gas to its Keystone complex. MarkWest Utica EMG provides gathering, processing, fractionation and marketing services in the liquids-rich corridor of the Utica Shale in eastern Ohio. In each of its operating segments, the company faces competition for natural gas gathering, crude oil transportation and in obtaining natural gas supplies for its processing and related services; in obtaining unprocessed NGLs for gathering and fractionation; and in marketing its products and services. The Company's processing and fractionation plants, pipelines and associated facilities are subject to multiple obligations and potential liabilities under a variety of stringent and comprehensive federal, regional, state and local laws and regulations governing discharges of materials into the environment or otherwise relating to environmental protection.
Executives
| Nancy Buese |
officer: EVP, Chief Financial Officer |
1515 ARAPAHOE STREET, DENVER CO 80202-2126 |
| J Michael Stice |
director |
525 CENTRAL PARK DRIVE, OKLAHOMA CITY OK 73105 |
| Frank M Semple |
director, officer: Chairman, President & CEO |
1515 ARAPAHOE ST., TOWER 2, SUITE 700, DENVER CO 80202 |
| Randy S Nickerson |
officer: EVP, Chief Commercial Officer |
1515 ARAPAHOE ST., TOWER 2, SUITE 700, DENVER CO 80202 |
| Randall J Larson |
director |
|
| Michael L Beatty |
director |
5735 PINELAND DR, SUITE 300, DALLAS TX 75231 |
| Donald D Wolf |
director |
1670 BROADWAY SUITE 2800, DENVER CO 80202 |
| Gregory Scott Floerke |
officer: EVP, Chief Commercial Officer |
C/O MARKWEST ENERGY PARTNERS, L.P., 1515 ARAPAHOE STREET, TOWER 1, SUITE 160, DENVER CO 80202 |
| Bromley C Corwin |
officer: EVP, General Counsel |
1515 ARAPAHOE ST., TOWER 2, SUITE 700, DENVER CO 80202 |
| Paula L Rosson |
officer: SVP/Chief Accounting Officer |
1515 ARAPAHOE STREET, TOWER 1 SUITE 1600, DENVER CO 80202 |
| John C Mollenkopf |
officer: EVP, Chief Operating Officer |
1515 ARAPAHOE ST., TOWER 2, SUITE 700, DENVER CO 80202 |
| William P Nicoletti |
director |
C/O STAR GAS PARTNERS, L.P., 2187 ATLANTIC STREET, STAMFORD CT 06902 |
| Bruckmann William A Iii |
director |
631 RANGER LANE, LONGBOAT KEY FL 342284119 |
MarkWest Energy Partners LP (MarkWest Energy Partners LP) Headlines
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