What is Plains All American Pipeline 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, Plains All American Pipeline LP's Probability of Financial Distress (%) is 0.03%.
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 Plains All American Pipeline LP's Probability of Financial Distress (%)
For the Oil & Gas Midstream subindustry, Plains All American Pipeline 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.
Plains All American Pipeline LP's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains All American Pipeline LP's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Plains All American Pipeline LP's Probability of Financial Distress (%) falls into.
Plains All American Pipeline 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 |
| = | -8.01 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
Plains All American Pipeline LP (Plains All American Pipeline LP) Business Description
Traded in Other Exchanges
N/A
Address
333 Clay Street, Suite 1600, Houston, TX, USA, 77002
Plains All American provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Plains' assets span the United States and Alberta, Canada, but are heavily concentrated in the Permian Basin.
Executives
| Jeremy L. Goebel |
officer: EVP & CCO |
333 CLAY STREET, SUITE 1600, HOUSTON TX 77002 |
| Ellen Desanctis |
director |
12326 OLD OAKS, HOUSTON TX 77024 |
| Willie Cw Chiang |
director, officer: Chairman & CEO |
370 17TH STREET, SUITE 2775, DENVER CO 80202 |
| Chris Herbold |
officer: Sr. VP Finance and CAO |
333 CLAY STREET, SUITE 1600, HOUSTON TX 77002 |
| Richard K. Mcgee |
officer: EVP, General Counsel & Sec. |
333 CLAY STREET, SUITE 1500, HOUSTON TX 77002 |
| Al Swanson |
officer: EVP & CFO |
333 CLAY STREET, # 1600, HOUSTON TX 77002 |
| Kevin S Mccarthy |
director |
C/O KAYNE ANDERSON CAPITAL ADVISORS, LP, 1800 AVENUE OF THE STARS, SECOND FLOOR, LOS ANGELES CA 90067 |
| Chris R. Chandler |
officer: EVP & COO |
333 CLAY STREET, SUITE 1600, HOUSTON TX 77002 |
| Harry N Pefanis |
director, officer: President |
333 CLAY STREET, STE 1600, HOUSTON TX 77002 |
| Plains Gp Holdings Lp |
director, 10 percent owner |
333 CLAY ST, SUITE 1600, HOUSTON TX 77002 |
| Paa Gp Holdings Llc |
director, 10 percent owner |
333 CLAY ST, SUITE 1600, HOUSTON TX 77002 |
| Plains All American Gp Llc |
director, 10 percent owner |
333 CLAY STREET, SUITE 1600, HOUSTON TX 77002 |
| Plains Aap, L.p. |
director, 10 percent owner |
333 CLAY STREET, SUITE 1600, HOUSTON TX 77002 |
| Chris Temple |
director |
3953 MAPLE AVENUE, SUITE 180, DALLAS TX 75219 |
| Kayne Anderson Capital Advisors Lp |
director, other: See remarks |
2121 AVENUE OF THE STARS, 9TH FLOOR, LOS ANGELES CA 90067 |
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