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Kinder Morgan Energy Partners LP (FRA:KM7) Interest Coverage : 4.88 (As of Sep. 2014)


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What is Kinder Morgan Energy Partners LP Interest Coverage?

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. Kinder Morgan Energy Partners LP's Operating Income for the three months ended in Sep. 2014 was €901 Mil. Kinder Morgan Energy Partners LP's Interest Expense for the three months ended in Sep. 2014 was €-185 Mil. Kinder Morgan Energy Partners LP's interest coverage for the quarter that ended in Sep. 2014 was 4.88. The higher the ratio, the stronger the company's financial strength is.

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

FRA:KM7' s Interest Coverage Range Over the Past 10 Years
Min: 1.36   Med: 3.52   Max: 5.02
Current: 4.23

FRA:KM7's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 6.77 vs FRA:KM7: 4.23

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

Kinder Morgan Energy Partners LP Interest Coverage Historical Data

The historical data trend for Kinder Morgan Energy 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.

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.

Kinder Morgan Energy Partners LP Interest Coverage Chart

Kinder Morgan Energy Partners LP Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.70 3.16 3.13 3.56 3.78

Kinder Morgan Energy Partners LP Quarterly Data
Sep09 Dec09 Mar10 Jun10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Interest Coverage Get a 7-Day Free Trial 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 3.96 4.38 3.92 3.70 4.88

Competitive Comparison of Kinder Morgan Energy Partners LP's Interest Coverage

For the Oil & Gas Midstream subindustry, Kinder Morgan Energy 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.

Kinder Morgan Energy Partners LP's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Kinder Morgan Energy Partners LP's Interest Coverage falls into.


Kinder Morgan Energy 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 (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.

Kinder Morgan Energy Partners LP's Interest Coverage for the fiscal year that ended in Dec. 2013 is calculated as

Here, for the fiscal year that ended in Dec. 2013, Kinder Morgan Energy Partners LP's Interest Expense was €-624 Mil. Its Operating Income was €2,357 Mil. And its Long-Term Debt & Capital Lease Obligation was €14,326 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2013 )/Interest Expense (A: Dec. 2013 )
=-1*2357.17/-624.15
=3.78

Kinder Morgan Energy Partners LP's Interest Coverage for the quarter that ended in Sep. 2014 is calculated as

Here, for the three months ended in Sep. 2014, Kinder Morgan Energy Partners LP's Interest Expense was €-185 Mil. Its Operating Income was €901 Mil. And its Long-Term Debt & Capital Lease Obligation was €17,089 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2014 )/Interest Expense (Q: Sep. 2014 )
=-1*900.936/-184.688
=4.88

* 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.

Kinder Morgan Energy Partners LP  (FRA:KM7) 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 .

Kinder Morgan Energy Partners LP Interest Coverage Related Terms

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

Kinder Morgan Energy Partners LP (FRA:KM7) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Kinder Morgan Energy Partners LP (FRA:KM7) » Definitions » Interest Coverage
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Traded in Other Exchanges
N/A
Address
Website
http://www.kindermorgan.com
Kinder Morgan Energy Partners LP is a Delaware limited partnership formed in August 1992. The Company is engaged in pipeline transportation and energy storage company in North America. They own an interest in or operate approximately 52,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and its terminals store petroleum products, ethanol and chemicals, and handle such products as coal, petroleum coke and steel. They are also the producer and transporter of CO2, for enhanced oil recovery projects in North America. Its operations are conducted through our five operating limited partnerships and their subsidiaries and are grouped into five reportable business segments: Natural Gas Pipelines—consists of approximately 40,000 miles of natural gas transmission pipelines and gathering lines, plus natural gas storage, treating and processing facilities, through which natural gas is gathered, transported, stored, treated, processed and sold; O2—which produces, markets and transports, through approximately 1,500 miles of pipelines, CO2 to oil fields that use CO2 to increase production of oil; owns interests in and/or operate four primary oil fields in West Texas; and owns and operates a 450-mile crude oil pipeline system in West Texas; Products Pipelines—consists of approximately 9,000 miles of refined petroleum products and crude oil and condensate pipelines that deliver refined petroleum products (gasoline, diesel fuel and jet fuel), NGL, crude oil, condensate and bio-fuels to various markets; plus approximately 62 associated product terminals and petroleum pipeline transmix processing facilities serving customers across the U.S.; Terminals—consists of approximately 122 owned or operated liquids and bulk terminal facilities and approximately 10 rail transloading and materials handling facilities located throughout the U.S. and portions of Canada, which together transload, store and deliver a wide variety of bulk, petroleum, petrochemical and other liquids products for customers across the U.S. and Canada; and Kinder Morgan Canada—transports crude oil and refined petroleum products through approximately 800 miles of pipelines from Alberta, Canada to marketing terminals and refineries in British Columbia and the state of Washington; plus five associated product terminal facilities. The Company's business operations are subject to federal, state, provincial and local laws and regulations relating to environmental protection, pollution and human health and safety in the U.S. and Canada.

Kinder Morgan Energy Partners LP (FRA:KM7) Headlines

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