Matador Resources Co (Matador Resources Co) Interest Coverage : 8.00 (As of Mar. 2024)

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What is Matador Resources Co 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. Matador Resources Co's Operating Income for the three months ended in Mar. 2024 was $317 Mil. Matador Resources Co's Interest Expense for the three months ended in Mar. 2024 was $-40 Mil. Matador Resources Co's interest coverage for the quarter that ended in Mar. 2024 was 8.00. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Matador Resources Co's Interest Coverage or its related term are showing as below:

MTDR' s Interest Coverage Range Over the Past 10 Years
Min: 0.48 Med: 7.16 Max: 28.26
Current: 8.85

MTDR's Interest Coverage is ranked better than
56.39% of 759 companies
in the Oil & Gas industry
Industry Median: 6.75 vs MTDR: 8.85

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

Matador Resources Co Interest Coverage Historical Data

The historical data trend for Matador Resources Co'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.

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Matador Resources Co Interest Coverage Chart

Matador Resources Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.79

2.04

13.28

28.26

10.04

Matador Resources Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															15.75	7.71	9.59	10.13	8.00

Competitive Comparison of Matador Resources Co's Interest Coverage

For the Oil & Gas E&P subindustry, Matador Resources Co'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.

Matador Resources Co's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Matador Resources Co's Interest Coverage falls into.

Matador Resources Co 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.

Matador Resources Co'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, Matador Resources Co's Interest Expense was $-122 Mil. Its Operating Income was $1,220 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,207 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1220.158	/	-121.52
	=	10.04

Matador Resources Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Matador Resources Co's Interest Expense was $-40 Mil. Its Operating Income was $317 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,972 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	316.603	/	-39.562
	=	8.00

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

Matador Resources Co (NYSE:MTDR) 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 .

Matador Resources Co Interest Coverage Related Terms

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

Matador Resources Co (Matador Resources Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Matador Resources Co (NYSE:MTDR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

7MR:Germany 7MR:Germany

Address

5400 LBJ Freeway, Suite 1500, One Lincoln Centre, Dallas, TX, USA, 75240

Website

https://www.matadorresources.com

Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business. The company often uses advanced formation evaluation, 3-D seismic technology, horizontal drilling, and hydraulic fracturing technology to enhance the development of the basins in which it operates.

Executives

Shelley F Appel	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Robert T Macalik	officer: VP, Chief Accounting Officer	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Timothy E. Parker	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Robert Gaines Baty	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Joseph Wm Foran	director, officer: Chairman, CEO and President	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
William M Byerley	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Monika U Ehrman	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Billy E Goodwin	officer: SVP - Operations	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
William Thomas Elsener	officer: EVP, Reservoir Engineering	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Reynald Baribault	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Michael D Frenzel	officer: SVP, Treasurer (PFO)	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Brian J Willey	officer: SVP, President of Midstream	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Craig N Adams	officer: VP and General Counsel	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
James M Howard	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240
Craig T Burkert	director	5400 LBJ FREEWAY, SUITE 1500, DALLAS TX 75240