Sanchez Energy (Sanchez Energy) Interest Coverage : 0 (At Loss) (As of Sep. 2019)

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What is Sanchez Energy 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. Sanchez Energy's Operating Income for the three months ended in Sep. 2019 was $-7.68 Mil. Sanchez Energy's Interest Expense for the three months ended in Sep. 2019 was $-20.92 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Sanchez Energy Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

SCAZQ.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.94 Med: 2.54 Max: No Debt
Current: 0.49

SCAZQ.PFD's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 6.74 vs SCAZQ.PFD: 0.49

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

Sanchez Energy Interest Coverage Historical Data

The historical data trend for Sanchez Energy'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.

Sanchez Energy Interest Coverage Chart

Sanchez Energy Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

Get a 7-Day Free Trial

1.64

0.94

1.73

Sanchez Energy Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
Interest Coverage	Get a 7-Day Free Trial															2.12	1.20	0.69	-	-

Competitive Comparison of Sanchez Energy's Interest Coverage

For the Oil & Gas E&P subindustry, Sanchez Energy'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.

Sanchez Energy's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Sanchez Energy's Interest Coverage falls into.

Sanchez Energy 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.

Sanchez Energy's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Sanchez Energy's Interest Expense was $-177.86 Mil. Its Operating Income was $307.33 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,395.41 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	307.327	/	-177.858
	=	1.73

Sanchez Energy's Interest Coverage for the quarter that ended in Sep. 2019 is calculated as

Here, for the three months ended in Sep. 2019, Sanchez Energy's Interest Expense was $-20.92 Mil. Its Operating Income was $-7.68 Mil. And its Long-Term Debt & Capital Lease Obligation was $340.95 Mil.

Sanchez Energy did not have earnings to cover the interest expense.

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

Sanchez Energy (OTCPK:SCAZQ.PFD) 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 .

Sanchez Energy Interest Coverage Related Terms

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

Sanchez Energy (Sanchez Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Sanchez Energy Corp (OTCPK:SCAZQ.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1000 Main Street, Suite 3000, Houston, TX, USA, 77002

Website

https://www.sanchezenergycorp.com

Sanchez Energy Corp is a United States-based independent exploration and production company. It is focused on the acquisition and development of U.S. onshore unconventional oil and natural gas resources, with the focus on the horizontal development of resource potential from the Eagle Ford Shale in South Texas. The company also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. It generates its revenue from the sale of oil, natural gas liquid sales, and others.

Executives

Eugene I Davis	director	8540 GANDER CREEK DRIVE, MIAMISBURG OH 45342
Adam C. Zylman	director	1000 MAIN STREET, SUITE 3000, HOUSTON TX 77002
Cameron W. George	officer: Interim CFO	1000 MAIN STREET, SUITE 3000, HOUSTON TX 77002
Nelson Robert V. Iii	director	1000 MAIN STREET, SUITE 3000, HOUSTON TX 77002
Gso Capital Solutions Associates Ii Lp	10 percent owner	C/O GSO CAPITAL PARTNERS LP, 345 PARK AVE., NEW YORK NY 10154
Gso Energy Partners-d Associates Llc	10 percent owner	C/O GSO CAPITAL PARTNERS LP, 345 PARK AVE., NEW YORK NY 10154
Gso Capital Solutions Associates Ii (cayman) Ltd.	10 percent owner	C/O GSO CAPITAL PARTNERS LP, 345 PARK AVE., NEW YORK NY 10154
Gso Capital Solutions Associates Ii (delaware) Llc	10 percent owner	C/O GSO CAPITAL PARTNERS LP, 345 PARK AVE., NEW YORK NY 10154
Gso Capital Opportunities Fund Iii Lp	10 percent owner	345 PARK AVENUE, NEW YORK NY 10154
Gso Energy Partners-c Ii Lp	10 percent owner	345 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10154
Gso Energy Select Opportunities Fund Lp	10 percent owner	345 PARK AVENUE, NEW YORK NY 10154
Gso Energy Partners-d Lp	10 percent owner	345 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10154
Gso Energy Partners-b Lp	10 percent owner	345 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10154
Gso Energy Partners-c Lp	10 percent owner	345 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10154
Gso Energy Partners-a Associates Llc	10 percent owner	C/O GSO CAPITAL PARTNERS LP, 345 PARK AVENUE, NEW YORK NY 10154