GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Lonestar Resources US Inc (OTCPK:LONEQ) » Definitions » Interest Coverage

Lonestar Resources US (Lonestar Resources US) Interest Coverage : 6.72 (As of Jun. 2021)


View and export this data going back to 2016. Start your Free Trial

What is Lonestar Resources US 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. Lonestar Resources US's Operating Income for the three months ended in Jun. 2021 was $26.4 Mil. Lonestar Resources US's Interest Expense for the three months ended in Jun. 2021 was $-3.9 Mil. Lonestar Resources US's interest coverage for the quarter that ended in Jun. 2021 was 6.72. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Lonestar Resources US Inc interest coverage is 2.06, which is low.

The historical rank and industry rank for Lonestar Resources US's Interest Coverage or its related term are showing as below:

LONEQ' s Interest Coverage Range Over the Past 10 Years
Min: 0.08   Med: 1.93   Max: 25.07
Current: 2.06


LONEQ's Interest Coverage is not ranked
in the Oil & Gas industry.
Industry Median: 6.645 vs LONEQ: 2.06

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


Lonestar Resources US Interest Coverage Historical Data

The historical data trend for Lonestar Resources US'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.

Lonestar Resources US Interest Coverage Chart

Lonestar Resources US Annual Data
Trend Jun12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Get a 7-Day Free Trial Premium Member Only - 0.08 1.83 1.03 N/A

Lonestar Resources US Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 - - N/A 6.10 6.72

Competitive Comparison of Lonestar Resources US's Interest Coverage

For the Oil & Gas E&P subindustry, Lonestar Resources US'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.


Lonestar Resources US's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Lonestar Resources US's Interest Coverage falls into.



Lonestar Resources US 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.

Lonestar Resources US's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Lonestar Resources US's Interest Expense was $0.0 Mil. Its Operating Income was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $255.3 Mil.

GuruFocus does not calculate Lonestar Resources US's interest coverage with the available data.

Lonestar Resources US's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Lonestar Resources US's Interest Expense was $-3.9 Mil. Its Operating Income was $26.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $243.2 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*26.398/-3.931
=6.72

* 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.


Lonestar Resources US  (OTCPK:LONEQ) 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 .


Lonestar Resources US Interest Coverage Related Terms

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


Lonestar Resources US (Lonestar Resources US) Business Description

Traded in Other Exchanges
N/A
Address
111 Boland Street, Suite 301, Fort Worth, TX, USA, 76107
Lonestar Resources US Inc is an oil and natural gas company. It focuses on the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas in the Eagle Ford Shale in South Texas. The properties in the Eagle Ford are divided into three distinct regions namely the Western Eagle Ford, Central Eagle Ford, and Eastern Eagle Ford. The vast majority of its revenue is generated from oil sales.
Executives
John H Pinkerton director 3437 W 7TH ST #234, FORT WORTH TX 76107-2718
Barry Schneider officer: CHIEF OPERATING OFFICER 111 BOLAND STREET, SUITE 300, FORT WORTH TX 76107
Jana Payne officer: VP - GEOSCIENCE 111 BOLAND STREET, SUITE 300 FORT WORTH TX 76107
Thomas H Olle officer: VP - RESERVIOR ENGINEERING 111 BOLAND STREET, SUITE 300 FORT WORTH TX 76107
Bracken Frank D Iii director, officer: CEO 111 BOLAND STREET, SUITE 300 FORT WORTH TX 76107
Jason N Werth officer: Chief Accounting Officer 600 BAILEY AVENUE SUITE 200 FORT WORTH TX 76107
Gregory R Packer officer: See Remarks 600 BAILEY AVENUE SUITE 200 FORT WORTH TX 76107
Chambers Energy Capital Iii, Lp 10 percent owner 600 TRAVIS STREET SUITE 4700 HOUSTON TX 77002
Cec Gp, Llc 10 percent owner C/O CHAMBERS ENERGY MANAGEMENT LP 600 TRAVIS STREET, SUITE 4700 HOUSTON TX 77002
Cec Fund Iii Gp,llc 10 percent owner C/O CHAMBERS ENERGY MANAGEMENT, LP 600 TRAVIS STREET, SUITE 4700 HOUSTON TX 77002
John Robert Chambers 10 percent owner C/O CHAMBERS ENERGY MANAGEMENT, LP 600 TRAVIS STREET, SUITE 4700 HOUSTON TX 77002
Henry Ellis director 111 BOLAND STREET, SUITE 300 FORT WORTH TX 76107
Stephen H Oglesby director 111 BOLAND STREET, SUITE 300 FORT WORTH TX 76107
Randy L Wolsey director 111 BOLAND STREET SUITE 300 FORT WORTH TX 76107
Daniel R Lockwood director 111 BOLAND STREET, SUITE 300 FORT WORTH TX 76107