Legacy Reserves (Legacy Reserves) Interest Coverage : 0 (At Loss) (As of Sep. 2019)

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What is Legacy Reserves 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. Legacy Reserves's Operating Income for the three months ended in Sep. 2019 was $-6.67 Mil. Legacy Reserves's Interest Expense for the three months ended in Sep. 2019 was $-15.15 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Legacy Reserves Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Legacy Reserves's Interest Coverage or its related term are showing as below:

LGCYP.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.03 Med: 1.68 Max: 5.84
Current: 0.03

LGCYP.PFD's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 6.79 vs LGCYP.PFD: 0.03

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

Legacy Reserves Interest Coverage Historical Data

The historical data trend for Legacy Reserves'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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Legacy Reserves Interest Coverage Chart

Legacy Reserves Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

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1.33

0.64

0.79

Legacy Reserves Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
Interest Coverage	Get a 7-Day Free Trial															0.98	0.63	0.16	-	-

Competitive Comparison of Legacy Reserves's Interest Coverage

For the Oil & Gas E&P subindustry, Legacy Reserves'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.

Legacy Reserves's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Legacy Reserves's Interest Coverage falls into.

Legacy Reserves 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.

Legacy Reserves's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Legacy Reserves's Interest Expense was $-117.01 Mil. Its Operating Income was $92.01 Mil. And its Long-Term Debt & Capital Lease Obligation was $432.92 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	92.007	/	-117.008
	=	0.79

Legacy Reserves's Interest Coverage for the quarter that ended in Sep. 2019 is calculated as

Here, for the three months ended in Sep. 2019, Legacy Reserves's Interest Expense was $-15.15 Mil. Its Operating Income was $-6.67 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Legacy Reserves did not have earnings to cover the interest expense.

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

Legacy Reserves (NAS:LGCYP.PFD) 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 .

Legacy Reserves Interest Coverage Related Terms

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

Legacy Reserves (Legacy Reserves) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Legacy Reserves Inc (NAS:LGCYP.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

303 West Wall Street, Suite 1800, Midland, TX, USA, 79701

Website

http://www.legacyreserves.com

Legacy Reserves LP is a limited partnership which focuses on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions of the United States. The company owns an interest in producing oil and natural gas properties in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma and several other states. The company operates through the segment being the Acquisition and development of oil and natural gas properties.