What is Miller Energy Resources 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, Miller Energy Resources'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 Miller Energy Resources's Probability of Financial Distress (%)
For the Oil & Gas E&P subindustry, Miller Energy Resources'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.
Miller Energy Resources's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Miller Energy Resources's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Miller Energy Resources's Probability of Financial Distress (%) falls into.
Miller Energy Resources 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).
Miller Energy Resources (Miller Energy Resources) Business Description
Traded in Other Exchanges
N/A
Address
Miller Energy Resources Inc was formed in Delaware in November 1985. In January 1997, it acquired Miller Petroleum, Inc., a privately-held company, in a reverse merger in which Miller Petroleum, Inc. In conjunction with this transaction, the Company changed its name to Miller Petroleum, Inc. and re-domesticated to the State of Tennessee. The Company is an exploration and production company that utilizes seismic data and other technologies for the geophysical exploration, development and production of oil and natural gas wells in the Cook Inlet Basin of southcentral Alaska and the Appalachian region of eastern Tennessee. The Company focuses its efforts on activities in the Cook Inlet and Susitna Basins of Alaska as well as the Appalachian region of East Tennessee. The Cook Inlet Basin contains large oil and gas deposits including multiple offshore fields. The Cook Inlet is a vast estuary stretching 180 miles from the Gulf of Alaska to Anchorage in southcentral Alaska. The Inlet separates the Kenai Peninsula in the east from the Alaska Peninsula in the west. The Cook Inlet Basin underlying this region contains large oil and gas deposits including several offshore fields. There are also numerous oil and gas pipelines located in and under the Cook Inlet. The Cook Inlet Basin has produced approximately 1.3 billion barrels of oil and 7.8 trillion cubic feet ('tcf') of natural gas. The Susitna Basin underlies the sprawling Susitna River valley to the north of Anchorage. The Susitna Basin lies directly north of the Cook Inlet Basin, separated by the Castle Mountain Fault, and has similar geology. Wells drilled within its acreage range from approximately 1,500 to 4,200 feet in depth with major targets in descending order being: the Mississippian age Monteagle Limestone and Fort Payne Limestone, and the Devonian age Chattanooga Shale, with the Fort Payne Limestone being the primary oil target. The existing markets for natural gas production in southcentral Alaska are the Tesoro Nikiski Refinery, utility companies, petrochemical manufacturing, the production of LNG for export to Asian markets, and the production of synthetic crude oil ('syncrude'). Presently, its sole market for crude oil produced from its Alaskan operations is the Tesoro Nikiski Refinery. Crude oil is shipped by pipeline and tanker vessel to the Tesoro Nikiski Refinery, operated by Tesoro Alaska Petroleum Company ('Tesoro'). It competes with a number of other companies doing business in Alaska, Tennessee and elsewhere, including large oil and gas companies and other operators. The Company's exploration and production business is subject to various federal, state and local laws and regulations on the taxation of natural gas and oil, the development, production and marketing of natural gas and oil and environmental and safety matters.
Executives
| Daniel Vogel |
director |
C/O APOLLO MANAGEMENT, L.P., 9 WEST 57TH, NEW YORK NY 10019 |
| Apollo Management Holdings Gp, Llc |
10 percent owner |
9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019 |
| Highbridge Principal Strategies - Specialty Loan Fund Iii, L.p. |
10 percent owner |
40 WEST 57TH STREET, 33RD FLOOR, NEW YORK NY 10019 |
| Jeffrey Fitts |
director |
C/O MILLER ENERGY RESOURCES, INC., 9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932 |
| Apollo Investment Management, L.p. |
10 percent owner |
2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808 |
| Apollo Investment Corp |
10 percent owner |
9 W. 57TH STREET, NEW YORK NY 10019 |
| Highbridge Specialty Loan Sector D Investment Fund, L.p. |
10 percent owner |
C/O HIGHBRIDGE PRINCIPAL STRATEGIES, LLC, 40 WEST 57TH STREET, NEW YORK NY 10019 |
| Don Dimitrievich |
director |
C/O MILLER ENERGY RESOURCES, INC., 9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932 |
| Gerald Girardi |
director |
C/O APOLLO MANAGEMENT, L.P., 9 WEST 57TH STREET, NEW YORK NY 10019 |
| Apollo Capital Management, L.p. |
10 percent owner |
9 WEST 57TH STREET, NEW YORK NY 10019 |
| Apollo Capital Management Gp, Llc |
10 percent owner |
9 WEST 57TH STREET, NEW YORK NY 10019 |
| Apollo Management Holdings, L.p. |
10 percent owner |
9 W. 57TH STREET, NEW YORK NY 10019 |
| Leland E Tate |
officer: Interim COO |
4600 POST OAK PLACE STE 200, HOUSTON TX 77027 |
| Phillip G Elliott |
officer: SVP and CFO |
9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932 |
| Jeffrey R Mcinturff |
officer: CAO |
9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932 |
Miller Energy Resources (Miller Energy Resources) Headlines
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