Newfield Exploration Co (Newfield Exploration Co) Interest Coverage : 12.83 (As of Sep. 2018)

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What is Newfield Exploration 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. Newfield Exploration Co's Operating Income for the three months ended in Sep. 2018 was $295 Mil. Newfield Exploration Co's Interest Expense for the three months ended in Sep. 2018 was $-23 Mil. Newfield Exploration Co's interest coverage for the quarter that ended in Sep. 2018 was 12.83. The higher the ratio, the stronger the company's financial strength is.

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

NFX's Interest Coverage is not ranked ^*
in the Oil & Gas industry.
Industry Median: 6.74
* Ranked among companies with meaningful Interest Coverage only.

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

Newfield Exploration Co Interest Coverage Historical Data

The historical data trend for Newfield Exploration 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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Newfield Exploration Co Interest Coverage Chart

Newfield Exploration Co Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Interest Coverage

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2.76

3.91

1.06

5.79

Newfield Exploration Co Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Interest Coverage	Get a 7-Day Free Trial															5.09	7.96	10.09	13.64	12.83

Competitive Comparison of Newfield Exploration Co's Interest Coverage

For the Oil & Gas E&P subindustry, Newfield Exploration 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.

Newfield Exploration Co's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Newfield Exploration Co's Interest Coverage falls into.

Newfield Exploration 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.

Newfield Exploration Co's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Newfield Exploration Co's Interest Expense was $-89 Mil. Its Operating Income was $515 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,434 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2017 )	/	Interest Expense (A: Dec. 2017 )
	=	-1	*	515	/	-89
	=	5.79

Newfield Exploration Co's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the three months ended in Sep. 2018, Newfield Exploration Co's Interest Expense was $-23 Mil. Its Operating Income was $295 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,436 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2018 )	/	Interest Expense (Q: Sep. 2018 )
	=	-1	*	295	/	-23
	=	12.83

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

Newfield Exploration Co (NYSE:NFX) 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 .

Newfield Exploration Co Interest Coverage Related Terms

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

Newfield Exploration Co (Newfield Exploration Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Newfield Exploration Co (NYSE:NFX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.newfield.com

Newfield Exploration Company is an independent exploration and production company that participates in exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company operates with a portfolio of onshore liquids-rich resource plays. Newfield Exploration has extensive drilling inventories in the United States' drilling areas. The majority of Newfield's operations are located in the Anadarko and Arkoma basins of Oklahoma, Willingston basin of North Dakota and Uinta basin of Utah. It also has oil producing assets offshore China. The majority of Newfield's oil, natural gas, and natural gas liquids are sold to a variety of purchasers under short-term contracts.

Executives

Roger B Plank	director
James Kent Wells	director	1700 LINCOLN STREET, SUITE 2800, DENVER CO 80203-4535
Steven W Nance	director	130 EAST RANDOLPH DRIVE, CHICAGO IL 60601
Giesinger Edgar R. Jr.	director	1915 SANDGATE FALLS, HOUSTON TX 77062
J Terry Strange	director	700 LOUISIANA STREET, SUITE 3000, HOUSTON TX 77002
Thomas G Ricks	director	H&S VENTURES LLC, 2101 EAST COAST HWY - 3RD FLOOR, CORONA DEL MAR CA 92625
Timothy D. Yang	officer: General Counsel and Secretary	1415 LOUISIANA STREET, SUITE 1600, HOUSTON TX 77002
Valerie A Mitchell	officer: VP-Mid-Continent	4 WATERWAY SQUARE PLACE, SUITE 100, THE WOODLANDS TX 77380
Kemp John Randolph Iii	director	3106 NOBLE LAKES LANE, HOUSTON TX 77082-6809
Clay M Gaspar	officer: VP-Mid-Continent	333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
Terry W Rathert	officer: EVP and Senior Advisor	4 WATERWAY SQUARE PLACE, SUITE 100, THE WOODLANDS TX 77380
Richard K Stoneburner	director
Howard H Newman	director	C/O PINE BROOK ROAD PARTNERS, LLC, 60 EAST 42ND STREET, SUITE 3014, NEW YORK NY 10165
Joseph H Netherland	director	35 ELECTRA CIRCLE, THE WOODLANDS TX 77382
J M Lacey	director	1726 FORREST PARKWAY, DENVER CO 80220