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. Gastar Exploration's
Operating Income
for the
three
months ended in Sep. 2013 was €1.22 Mil. Gastar Exploration's Interest Expense for the
three
months ended in Sep. 2013 was €-2.57 Mil.
Gastar Exploration's interest coverage for the quarter that ended in Sep. 2013 was 0.47.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Gastar Exploration's Interest Coverage or its related term are showing as below:
FRA:G4A1'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 2.43
Current: 2.43
FRA:G4A1's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 6.74
vs FRA:G4A1: 2.43
Gastar Exploration Interest Coverage Historical Data
The historical data trend for Gastar Exploration'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.
Competitive Comparison of Gastar Exploration's Interest Coverage
For the Oil & Gas E&P subindustry, Gastar Exploration'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.
Gastar Exploration's Interest Coverage Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Gastar Exploration's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Gastar Exploration's Interest Coverage falls into.
Gastar Exploration 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:
* 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.
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 .
Gastar Exploration Interest Coverage Related Terms
Thank you for viewing the detailed overview of Gastar Exploration's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Gastar Exploration (FRA:G4A1) Business Description
Gastar Exploration Ltd., is a Canadian Corporation incorporated in Alberta in 1987. The Company is an energy company engaged in the exploration, development and production of natural gas and oil in the U.S. The Company's principal business activities include the identification, acquisition, and subsequent exploration and development of natural gas and oil properties with an emphasis on unconventional reserves, such as shale resource plays. The Company is currently pursuing the development of liquids-rich natural gas in the Marcellus Shale in the Appalachia area of West Virginia and, to a lesser extent, central and southwestern Pennsylvania. It also holds prospective acreage in the deep Bossier play in the Hilltop area of East Texas. Its strategy is to increase stockholder value by delivering sustainable reserves growth and improved operating results from its existing assets. Due to lower natural gas prices, the Company is focusing the majority of its drilling activity in the liquids-rich area of the Marcellus Shale. In addition to the environmental regulations its natural gas and oil exploration, production and related operations are subject to extensive rules and regulations promulgated in the United States. These laws and regulations, all of which are subject to change from time to time, include matters relating to land tenure; drilling and production practices, such as discharge permits and the spacing of wells; the disposal of water resulting from operations and the processing, handling and disposal of hazardous materials, such as hydrocarbons and naturally occurring radioactive materials; bonding requirements; ongoing obligations for licensing; reporting requirements; marketing and pricing policies; royalties; taxation; and foreign trade and investment.
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