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LRR Energy LP (LRR Energy LP) Interest Coverage : 0 (At Loss) (As of Jun. 2015)


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What is LRR Energy 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. LRR Energy LP's Operating Income for the three months ended in Jun. 2015 was $-18.9 Mil. LRR Energy LP's Interest Expense for the three months ended in Jun. 2015 was $-3.1 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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


LRE's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 6.72
* 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.


LRR Energy LP Interest Coverage Historical Data

The historical data trend for LRR Energy 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.

LRR Energy LP Interest Coverage Chart

LRR Energy LP Annual Data
Trend Dec09 Dec10 Dec12 Dec13 Dec14
Interest Coverage
- 8.21 2.76 - 6.23

LRR Energy LP Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
Interest Coverage Get a 7-Day Free Trial 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 12.43 - -

Competitive Comparison of LRR Energy LP's Interest Coverage

For the Oil & Gas E&P subindustry, LRR Energy 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.


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

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

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



LRR Energy 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.

LRR Energy LP's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, LRR Energy LP's Interest Expense was $-10.5 Mil. Its Operating Income was $65.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $280.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2014 )/Interest Expense (A: Dec. 2014 )
=-1*65.19/-10.472
=6.23

LRR Energy LP's Interest Coverage for the quarter that ended in Jun. 2015 is calculated as

Here, for the three months ended in Jun. 2015, LRR Energy LP's Interest Expense was $-3.1 Mil. Its Operating Income was $-18.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $285.0 Mil.

LRR Energy LP did not have earnings to cover the 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.

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


LRR Energy LP  (NYSE:LRE) 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 .


LRR Energy LP Interest Coverage Related Terms

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


LRR Energy LP (LRR Energy LP) Business Description

Traded in Other Exchanges
N/A
Address
LRR Energy LP formed in April 2011 by Lime Rock Management LP. The Company is engaged in operating, acquiring, exploiting and producing oil and natural gas properties in North America. The Company's properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas. Its customers includes ConocoPhillips, Holly Frontier, Sunoco and Shell Trading Company. The Company's operations are subject to stringent and complex federal, state and local laws and regulations governing environmental protection as well as the discharge of materials into the environment.
Executives
Eric D. Mullins director, officer: Co-CEO & Chairman of the Board HERITAGE PLAZA, 1111 BAGBY STREET, SUITE 4600, HOUSTON TX 77002
John T Reynolds 10 percent owner, other: Director by Deputization C/O C/O LIME ROCK PARTNERS, 518 RIVER SIDE AVE BLDG 11 2ND FL, WESTPORT CT 06880
Jonathan C. Farber director, 10 percent owner HERITAGE PLAZA, 1111 BAGBY STREET, SUITE 4600, HOUSTON TX 77002
Jaime R. Casas officer: V.P. and CFO HERITAGE PLAZA, 1111 BAGBY STREET, SUITE 4600, HOUSTON TX 77002
Jonathan P Carroll director 4265 SAN FELIPE, 8TH FLOOR, HOUSTON TX 77027
John A Bailey director 64 PERCH BAY WACCABUC NY 10597
Robert T Oconnell director C/O CENTERPOINT ENERGY, INC., 1111 LOUISIANA, HOUSTON TX 77002
Dawn Smajstrla officer: V.P., Controller and CAO 801 LOUISIANA, STE 700, HOUSTON X1 77479
Milton Carroll director C/O CENTERPOINT ENERGY, INC., 1111 LOUISIANA STREET, HOUSTON TX 77002