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El Paso Pipeline Partners LP (FRA:3EP1) Operating Margin % : 56.25% (As of Sep. 2014)


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What is El Paso Pipeline Partners LP Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. El Paso Pipeline Partners LP's Operating Income for the three months ended in Sep. 2014 was €154 Mil. El Paso Pipeline Partners LP's Revenue for the three months ended in Sep. 2014 was €273 Mil. Therefore, El Paso Pipeline Partners LP's Operating Margin % for the quarter that ended in Sep. 2014 was 56.25%.

Good Sign:

El Paso Pipeline Partners LP operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for El Paso Pipeline Partners LP's Operating Margin % or its related term are showing as below:

FRA:3EP1' s Operating Margin % Range Over the Past 10 Years
Min: 46.91   Med: 56.96   Max: 70.13
Current: 58.59


FRA:3EP1's Operating Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 7.915 vs FRA:3EP1: 58.59

El Paso Pipeline Partners LP's 5-Year Average Operating Margin % Growth Rate was 1.60% per year.

El Paso Pipeline Partners LP's Operating Income for the three months ended in Sep. 2014 was €154 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was €641 Mil.


El Paso Pipeline Partners LP Operating Margin % Historical Data

The historical data trend for El Paso Pipeline Partners LP's Operating Margin % 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.

* Premium members only.

El Paso Pipeline Partners LP Operating Margin % Chart

El Paso Pipeline Partners LP Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 54.41 55.58 55.02 56.96 59.47

El Paso Pipeline Partners LP Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Operating Margin % 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 57.45 58.31 63.35 56.09 56.25

Competitive Comparison of El Paso Pipeline Partners LP's Operating Margin %

For the Oil & Gas Midstream subindustry, El Paso Pipeline Partners LP's Operating Margin %, along with its competitors' market caps and Operating Margin % 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.


El Paso Pipeline Partners LP's Operating Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, El Paso Pipeline Partners LP's Operating Margin % distribution charts can be found below:

* The bar in red indicates where El Paso Pipeline Partners LP's Operating Margin % falls into.



El Paso Pipeline Partners LP Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

El Paso Pipeline Partners LP's Operating Margin % for the fiscal year that ended in Dec. 2013 is calculated as

Operating Margin %=Operating Income (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=653.35 / 1098.65
=59.47 %

El Paso Pipeline Partners LP's Operating Margin % for the quarter that ended in Sep. 2014 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=153.648 / 273.152
=56.25 %

* 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.


El Paso Pipeline Partners LP  (FRA:3EP1) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


El Paso Pipeline Partners LP Operating Margin % Related Terms

Thank you for viewing the detailed overview of El Paso Pipeline Partners LP's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


El Paso Pipeline Partners LP (FRA:3EP1) Business Description

Traded in Other Exchanges
N/A
Address
El Paso Pipeline Partners LP is a Delaware Master Limited Partner formed in 2007. The Company owns and operates interstate natural gas transportation and terminaling facilities. The pipelines that the company owns are WIC, SLNG, Elba Express, SNG, CIG, SLC and CPG. WIC and CIG are interstate pipeline systems serving the Rocky Mountain region. CPG is an interstate pipeline that serves the Rocky Mountain and Midwest regions. SLNG owns the Elba Island LNG storage and regasification terminal near Savannah, Georgia. Elba Express and SNG are interstate pipeline systems serving the southeastern region of the U.S. SNG is comprised of pipelines extending from natural gas supply basins in Texas, Louisiana, Mississippi and Alabama to market areas in Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina and Tennessee, including the metropolitan areas of Atlanta and Birmingham. SNG owns pipeline facilities serving southeastern markets in Alabama, Georgia and South Carolina. CIG is comprised of pipelines that deliver natural gas from production areas in the Rocky Mountains and the Anadarko Basin directly to customers in Colorado, Wyoming and indirectly to the Midwest, Southwest, California and Pacific Northwest. CIG also owns interests in five storage facilities located in Colorado and Kansas and one natural gas processing plant located in Wyoming. WIC is comprised of a mainline system that extends from western Wyoming to northeast Colorado (the Cheyenne Hub) and several lateral pipeline systems that extend from various interconnections along the WIC mainline into western Colorado, northeast Wyoming and eastern Utah. WIC owns interstate natural gas transportation systems providing takeaway capacity from the mature Overthrust, Piceance, Uinta, Powder River and Green River Basins. CPG is a pipeline system that extends from Cheyenne Hub in Weld County, Colorado and extends southerly to a variety of delivery points in the vicinity of the Greensburg Hub in Kiowa County, Kansas. CPG provides pipeline takeaway capacity from the natural gas basins in the Central Rocky Mountain area to the major natural gas markets in the Mid-Continent region. Elba Express owns the Elba Express pipeline that is capable of transporting natural gas supplies in a northerly direction from the Elba Island LNG terminal to markets in the southeastern and eastern U.S. or transporting natural gas in a southerly direction from interconnections with Transcontinental pipeline to markets located on Elba Express or to interconnections between Elba Express and SNG, Carolina Gas Transmission and SLNG. SLNG owns the Elba Island LNG receiving terminal, located near Savannah, Georgia. The Elba Island LNG terminal is one of nine land-based terminal facilities in the U.S. capable of providing domestic storage and vaporization services to international producers of LNG. The Company faces competition from other existing and proposed pipelines and LNG facilities, as well as from a

El Paso Pipeline Partners LP (FRA:3EP1) Headlines

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