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Permian Resources (Permian Resources) Interest Coverage

: 9.35 (As of Dec. 2023)
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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. Permian Resources's Operating Income for the three months ended in Dec. 2023 was $550 Mil. Permian Resources's Interest Expense for the three months ended in Dec. 2023 was $-59 Mil. Permian Resources's interest coverage for the quarter that ended in Dec. 2023 was 9.35. The higher the ratio, the stronger the company's financial strength is.

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

PR' s Interest Coverage Range Over the Past 10 Years
Min: 3.41   Med: 9.12   Max: 22.42
Current: 9.12


PR's Interest Coverage is ranked better than
56.79% of 759 companies
in the Oil & Gas industry
Industry Median: 6.72 vs PR: 9.12

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


Permian Resources Interest Coverage Historical Data

The historical data trend for Permian Resources'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.

Permian Resources Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.41 - 7.02 15.57 9.12

Permian Resources Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.10 8.78 7.35 10.75 9.35

Competitive Comparison

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


Permian Resources Interest Coverage Distribution

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

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



Permian Resources 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.

Permian Resources'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, Permian Resources's Interest Expense was $-161 Mil. Its Operating Income was $1,469 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,877 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1469.071/-161.131
=9.12

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

Here, for the three months ended in Dec. 2023, Permian Resources's Interest Expense was $-59 Mil. Its Operating Income was $550 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,877 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*549.709/-58.804
=9.35

* 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.


Permian Resources  (NYSE:PR) 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 .


Permian Resources Interest Coverage Related Terms

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


Permian Resources (Permian Resources) Business Description

Traded in Other Exchanges
Address
300 N. Marienfeld Street, Suite 1000, Midland, TX, USA, 79701
Permian Resources Corp is an independent oil and natural gas company focused on generating outsized returns to stakeholders through the responsible acquisition, optimization and development of oil and liquids-rich natural gas assets.
Executives
Guy M Oliphint officer: EVP, Chief Financial Officer C/O PENNIAN RESOURCES CORPORATION, I300 N. MARIENFELD ST., SUITE 1000, MIDLAND TX 79701
Silver Run Sponsor, Llc 10 percent owner 1000 LOUISIANA STREET, SUITE 1450, C/O RIVERSTONE EQUITY, HOUSTON TX 77002
Encap Energy Capital Fund Viii, L.p. 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Ngp Xi Us Holdings, L.p. 10 percent owner 2850 N HARWOOD STREET, 19TH FLOOR, DALLAS TX 75201
Riverstone Non-eci Usrpi Aiv, L.p. 10 percent owner C/O RIVERSTONE HOLDINGS, 712 FIFTH AVENUE, 36TH FLOOR, NEW YORK NY 10019
Rel Us Centennial Holdings, Llc 10 percent owner C/O RIVERSTONE HOLDINGS, 712 FIFTH AVENUE, 36TH FLOOR, NEW YORK NY 10019
Robert John Anderson director 1400 WOODLOCH FOREST DRIVE, SUITE 300, THE WOODLANDS TX 77380
U.s. Bank Trust Company, National Association 10 percent owner 111 SW FIFTH AVENUE, PORTLAND OR 97204
Encap Energy Capital Fund Xi, L.p. 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Frost W. Cochran director 34 S. WYNDEN DR, STE 300, HOUSTON TX 77056
Encap Energy Capital Fund Ix, L.p. 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Bold Energy Holdings, Llc 10 percent owner 600 N. MARIENFELD ST., SUITE 1000, MIDLAND TX 79701
Encap Partners Gp, Llc 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Brent P Jensen officer: SVP, Chief Accounting Officer C/O CENTENNIAL RESOURCE DEVELOPMENT, INC, 1401 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
John Charles Bell officer: EVP & General Counsel C/O CENTENNIAL RESOURCE DEVELOPMENT, INC, 1001 SEVENTEENTH STREET, SUITE 1800, DENVER CO 80202