MPLX LP (MPLX LP) Interest Coverage : 4.85 (As of Dec. 2023)

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What is MPLX 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. MPLX LP's Operating Income for the three months ended in Dec. 2023 was $1,087 Mil. MPLX LP's Interest Expense for the three months ended in Dec. 2023 was $-224 Mil. MPLX LP's interest coverage for the quarter that ended in Dec. 2023 was 4.85. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. MPLX LP interest coverage is 4.63, which is low.

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

MPLX' s Interest Coverage Range Over the Past 10 Years
Min: 3.71 Med: 4.41 Max: 59.75
Current: 4.63

MPLX's Interest Coverage is ranked worse than
61.26% of 759 companies
in the Oil & Gas industry
Industry Median: 6.73 vs MPLX: 4.63

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

MPLX LP Interest Coverage Historical Data

The historical data trend for MPLX 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.

MPLX LP Interest Coverage Chart

MPLX LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.80

4.01

4.66

4.65

MPLX LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.01	4.73	4.48	4.46	4.85

Competitive Comparison of MPLX LP's Interest Coverage

For the Oil & Gas Midstream subindustry, MPLX 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.

MPLX LP's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where MPLX LP's Interest Coverage falls into.

MPLX 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.

MPLX LP's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, MPLX LP's Interest Expense was $-897 Mil. Its Operating Income was $4,174 Mil. And its Long-Term Debt & Capital Lease Obligation was $19,733 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4174	/	-897
	=	4.65

MPLX LP's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, MPLX LP's Interest Expense was $-224 Mil. Its Operating Income was $1,087 Mil. And its Long-Term Debt & Capital Lease Obligation was $19,733 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1087	/	-224
	=	4.85

The higher the ratio, the stronger the company's Financial Strength is.

MPLX LP (NYSE:MPLX) 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 .

MPLX LP Interest Coverage Related Terms

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

MPLX LP (MPLX LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » MPLX LP (NYSE:MPLX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MPLXP.PFD:USA

Address

200 East Hardin Street, Findlay, OH, USA, 45840-3229

Website

https://www.mplx.com

MPLX is a partnership that owns both pipelines and gathering and processing assets with extensive holdings in the Appalachian region. The asset base is made up of pipeline assets dropped down from Marathon Petroleum, its sponsor, and gathering and processing assets from MarkWest, which it acquired in 2015. MPLX also acquired Andeavor Logistics in July 2019.

Executives

Christine S Breves	director	600 GRANT STREET, SUITE 6100, PITTSBURGH PA 16059
Shawn M Lyon	officer: Senior VP, Log. & Storage	C/O MPLX, 200 E HARDIN STREET, FINDLAY OH 45840
Gregory Scott Floerke	officer: Exec VP and CCO	C/O MARKWEST ENERGY PARTNERS, L.P., 1515 ARAPAHOE STREET, TOWER 1, SUITE 160, DENVER CO 80202
Frank M Semple	director, officer: Vice Chairman	1515 ARAPAHOE ST., TOWER 2, SUITE 700, DENVER CO 80202
Kelly D Wright	officer: VP and Controller	C/O MPLX LP, 200 E HARDIN STREET, FINDLAY OH 45840
John J Quaid	officer: Exec VP and CFO	C/O MARATHON PETROLEUM CORPORATION, 539 SOUTH MAIN STREET, FINDLAY OH 45840
Maryann T. Mannen	director	C/O MARATHON PETROLEUM CORPORATION, 539 SOUTH MAIN ST, FINDLAY OH 45840
Ttc Holdings Llc	10 percent owner	539 SOUTH MAIN STREET, FINDLAY OH 45840
Timothy J Aydt	officer: Chief Comm. Ofc.,Exec. VP	C/O MPLX LP, 200 E. HARDIN STREET, FINDLAY OH 45840
Garry L. Peiffer	director, officer: President	C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Gary R Heminger	director, officer: Chief Executive Officer	C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Dan D Sandman	director
Tesoro Logistics Gp, Llc	other: Less than 10% owner	200 E. HARDIN STREET, FINDLAY OH 45840
Western Refining, Inc.	10 percent owner	539 SOUTH MAIN STREET, FINDLAY OH 45840-3229
Tesoro Refining & Marketing Co Llc	other: Less than 10% owner	539 SOUTH MAIN STREET, FINDLAY OH 45840-3229