What is PostRock Energy Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, PostRock Energy's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of PostRock Energy's Probability of Financial Distress (%)
For the Oil & Gas E&P subindustry, PostRock Energy's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
PostRock Energy's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, PostRock Energy's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where PostRock Energy's Probability of Financial Distress (%) falls into.
PostRock Energy Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
PostRock Energy (PostRock Energy) Business Description
Traded in Other Exchanges
N/A
Address
210 Park Avenue, Oklahoma, OK, USA, 73102
PostRock Energy Corp together with its subsidiaries is an independent oil and gas company. The company is engaged in acquisition, exploration, development, production and gathering of crude oil and natural gas.
Executives
| Duke R Ligon |
director |
2800 WEST COUNTRY CLUB DRIVE, SUITE E, OKLAHOMA CITY OK 73116 |
| Alexander P Lynch |
director |
BIOFUEL ENERGY CORP., 1600 BROADWAY SUITE 2200, DENVER CO 80202 |
| Ben A Guill |
10 percent owner |
600 TRAVIS, SUITE 6000, HOUSTON TX 77002 |
| Edelman & Guill Energy L.p. |
director, 10 percent owner |
700 LOUISIANA STREET, SUITE 4770, HOUSTON TX 77002 |
| Edelman & Guill Energy Ltd. |
10 percent owner |
700 LOUISIANA STREET, SUITE 4770, HOUSTON TX 77002 |
| White Deer Energy Fi, L.p. |
10 percent owner |
700 LOUISIANA STREET, SUITE 4770, HOUSTON TX 77002 |
| White Deer Energy Te L.p. |
10 percent owner |
700 LOUISIANA STREET, HOUSTON TX 77002 |
| White Deer Energy L.p. |
10 percent owner |
700 LOUISIANA STREET, HOUSTON TX 77002 |
| Thomas J Edelman |
10 percent owner |
777 MAIN STREET SUITE 2500, FORT WORTH TX 76102 |
| J Philip Mccormick |
director |
|
| Daniel L Spears |
director |
C/O EMERALD OIL, INC., 200 COLUMBINE, SUITE 500, DENVER CO 80206 |
| Jack T Collins |
officer: EVP & CFO |
210 PARK AVENUE SUITE 2750 OKLAHOMA CITY OK 73102 |
| Constellation Energy Group Inc |
10 percent owner |
100 CONSTELLATION WAY, BALTIMORE MD 21202 |
| David C Lawler |
director, officer: CEO and President |
9520 NORTH MAY STREET, SUITE 300, OKLAHOMA CITY OK 73120 |
| Gary M Pittman |
director |
C/O FLOTEK INDUSTRIES, INC., 2930 W. SAM HOUSTON PARKWAY N., STE. 300, HOUSTON, TX 77043 |
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