Magnolia Petroleum (LSE:MAGP) Debt-to-Equity: 3.25 (As of Jun. 2017) — 829% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Magnolia Petroleum Debt-to-Equity?

Magnolia Petroleum LSE:MAGP +50.00% Debt-to-Equity is 3.25 as of Jun. 2017, which is 829% above its 10-year median of 0.35. The stock has 6 warning signs investors should review.

Magnolia Petroleum's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2017 was £2.00 Mil. Magnolia Petroleum's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2017 was £0.00 Mil. Magnolia Petroleum's Total Stockholders Equity for the quarter that ended in Jun. 2017 was £0.62 Mil. Magnolia Petroleum's debt to equity for the quarter that ended in Jun. 2017 was 3.25.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Magnolia Petroleum's Debt-to-Equity or its related term are showing as below:

LSE:MAGP' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.06   Med: 0.35   Max: 3.25
Current: 3.25

During the past 9 years, the highest Debt-to-Equity Ratio of Magnolia Petroleum was 3.25. The lowest was 0.06. And the median was 0.35.

LSE:MAGP's Debt-to-Equity is not ranked
in the Oil & Gas industry.
Industry Median: 0.45 vs LSE:MAGP: 3.25

Magnolia Petroleum  (LSE:MAGP) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.


Magnolia Petroleum Debt-to-Equity Related Terms


Magnolia Petroleum Debt-to-Equity Historical Data

* Premium members only.

The historical data trend for Magnolia Petroleum's Debt-to-Equity 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.

Magnolia Petroleum Debt-to-Equity Chart

Magnolia Petroleum Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Debt-to-Equity
Get a 7-Day Free Trial Premium Member Only 0.00 0.06 0.18 0.53 0.84

Magnolia Petroleum Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Debt-to-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.22 0.53 0.48 0.84 3.25

LSE:MAGP vs VNRRQ, GBEYF, STSC: Debt-to-Equity Comparison

For the Oil & Gas E&P subindustry, Magnolia Petroleum's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.


Magnolia Petroleum Debt-to-Equity vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Magnolia Petroleum's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Magnolia Petroleum's Debt-to-Equity falls into.



Magnolia Petroleum Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Magnolia Petroleum's Debt to Equity Ratio for the fiscal year that ended in Dec. 2016 is calculated as

Magnolia Petroleum's Debt to Equity Ratio for the quarter that ended in Jun. 2017 is calculated as

* 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.

Frequently Asked Questions Learn more about Debt-to-Equity →
What does a Debt-to-Equity of 3.25 mean?
Magnolia Petroleum (LSE:MAGP) has a Debt-to-Equity of 3.25 as of Jun. 2017. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Magnolia Petroleum and its competitors. This is 829% above median its historical median of 0.35. Over the past decade, Magnolia Petroleum's Debt-to-Equity has ranged from 0.06 to 3.25.
Is Magnolia Petroleum's Debt-to-Equity too high?
Magnolia Petroleum's current Debt-to-Equity of 3.25 is 829% above median its 10-year median of 0.35. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 3.25. The Oil & Gas industry median Debt-to-Equity is 0.45. Magnolia Petroleum's value of 3.25 is 622.2% above this industry median.
How does Magnolia Petroleum's Debt-to-Equity compare to VNRRQ and GBEYF?
Magnolia Petroleum's Debt-to-Equity of 3.25 can be compared against companies in the Oil & Gas industry. The industry median Debt-to-Equity is 0.45. Magnolia Petroleum's value of 3.25 is 622.2% above this benchmark. Historically, Magnolia Petroleum's own Debt-to-Equity has ranged from 0.06 to 3.25 over the past decade. While the company's 10-year median is 0.35 vs. the industry median of 0.45, Magnolia Petroleum has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for an Oil & Gas company?
The median Debt-to-Equity among Oil & Gas companies is 0.45, based on 809 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magnolia Petroleum's current Debt-to-Equity of 3.25 is 622.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Magnolia Petroleum and its competitors. For the Oil & Gas industry, the median Debt-to-Equity is 0.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnolia Petroleum's current Debt-to-Equity is 3.25, which is 829% above median its own 10-year median of 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Petroleum stock overvalued right now?
Magnolia Petroleum (LSE:MAGP) has a current Debt-to-Equity of 3.25. The current Debt-to-Equity is 3.25, which is 829% above median its 10-year median of 0.35 and 622.2% above the Oil & Gas industry median of 0.45. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Magnolia Petroleum (LSE:MAGP), the current Debt-to-Equity is 3.25 as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Magnolia Petroleum Business Description

Industry EnergyOil & Gas
Address 19-21 Crawford Street, Suite 321, London, GBR, W1H 1PJ
Magnolia Petroleum PLC is an oil and gas production company. The company focuses on the acquisition, exploitation, and development of oil and gas properties located onshore in the United States. It has a diverse portfolio of revenue-generating assets including leases on the highly productive Bakken/Three Forks Sanish Formation in North Dakota and the proven Mississippi Lime and Woodford/Hunton oil formations in Oklahoma. It operates in two geographical areas, the United Kingdom and the United States of America.