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

TXO Partners LP (TXO Partners LP) Interest Coverage : 21.63 (As of Dec. 2023)


View and export this data going back to 2023. Start your Free Trial

What is TXO Partners 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. TXO Partners LP's Operating Income for the three months ended in Dec. 2023 was $25.2 Mil. TXO Partners LP's Interest Expense for the three months ended in Dec. 2023 was $-1.2 Mil. TXO Partners LP's interest coverage for the quarter that ended in Dec. 2023 was 21.63. The higher the ratio, the stronger the company's financial strength is.

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

TXO' s Interest Coverage Range Over the Past 10 Years
Min: 7.53   Med: 15.03   Max: 22.52
Current: 22.52

TXO's Interest Coverage is ranked better than
73.23% of 762 companies
in the Oil & Gas industry
Industry Median: 6.74 vs TXO: 22.52

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

TXO Partners LP Interest Coverage Historical Data

The historical data trend for TXO Partners 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.

TXO Partners LP Interest Coverage Chart

TXO Partners LP Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Interest Coverage
- 7.53 - 22.52

TXO Partners LP Quarterly Data
Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 54.78 - 3.64 21.63

Competitive Comparison of TXO Partners LP's Interest Coverage

For the Oil & Gas E&P subindustry, TXO Partners 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.

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

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

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


TXO Partners 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.

TXO Partners 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, TXO Partners LP's Interest Expense was $-4.4 Mil. Its Operating Income was $99.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $28.1 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*99.603/-4.423
=22.52

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

Here, for the three months ended in Dec. 2023, TXO Partners LP's Interest Expense was $-1.2 Mil. Its Operating Income was $25.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $28.1 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*25.176/-1.164
=21.63

* 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.

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

TXO Partners LP  (NYSE:TXO) 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 .

TXO Partners LP Interest Coverage Related Terms

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

TXO Partners LP (TXO Partners LP) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » TXO Partners LP (NYSE:TXO) » Definitions » Interest Coverage
Comparable Companies
SD WTI BRY GPRK REPX VTS EGY GFR TELL GRNT COP HKSE:00883 EOG TSX:CNQ PXD OXY MIC:NVTK HES ASX:WDS DVN
Traded in Other Exchanges
N/A
Address
400 West 7th Street, Fort Worth, TX, USA, 76102
Website
https://www.txopartners.com
TXO Partners LP is focused on the acquisition, development, optimization and exploitation of oil, natural gas, and natural gas liquid reserves in North America.
Executives
Phillip R Kevil director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
King Luther Capital Management Corp 10 percent owner 301 COMMERCE SUITE 1600, FORT WORTH TX 76102
Bob R Simpson director, 10 percent owner, officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Keith A Hutton director, 10 percent owner, officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Adams William H Iii director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Global Endowment Management, Lp 10 percent owner 224 W TREMONT AVE, CHARLOTTE NC 28203
Lkcm Investment Partnership, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Private Discipline Master Fund, Spc 10 percent owner PO BOX 309GT, UGLAND HOUSE, SOUTH CHURCH STREET, GRAND CAYMAN E9 00000
King J Luther Jr director, 10 percent owner, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Brent W. Clum director, officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 W. 7TH STREET, FORT WORTH TX 76102
Scott T. Agosta officer: See Remarks, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 W. 7TH STREET, FORT WORTH TX 76102
Richard Jacob Settle director, other: See Remarks C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102