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Anadarko Petroleum (Anadarko Petroleum) Interest Coverage : 3.30 (As of Jun. 2019)


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What is Anadarko Petroleum 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. Anadarko Petroleum's Operating Income for the three months ended in Jun. 2019 was $821 Mil. Anadarko Petroleum's Interest Expense for the three months ended in Jun. 2019 was $-249 Mil. Anadarko Petroleum's interest coverage for the quarter that ended in Jun. 2019 was 3.30. The higher the ratio, the stronger the company's financial strength is.

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


APC's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 6.59
* 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.


Anadarko Petroleum Interest Coverage Historical Data

The historical data trend for Anadarko Petroleum'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.

Anadarko Petroleum Interest Coverage Chart

Anadarko Petroleum Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.63 - - - 3.59

Anadarko Petroleum Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 3.78 4.78 3.15 3.32 3.30

Competitive Comparison of Anadarko Petroleum's Interest Coverage

For the Oil & Gas E&P subindustry, Anadarko Petroleum'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.


Anadarko Petroleum's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Anadarko Petroleum's Interest Coverage falls into.



Anadarko Petroleum 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.

Anadarko Petroleum'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, Anadarko Petroleum's Interest Expense was $-947 Mil. Its Operating Income was $3,399 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,470 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2018 )/Interest Expense (A: Dec. 2018 )
=-1*3399/-947
=3.59

Anadarko Petroleum's Interest Coverage for the quarter that ended in Jun. 2019 is calculated as

Here, for the three months ended in Jun. 2019, Anadarko Petroleum's Interest Expense was $-249 Mil. Its Operating Income was $821 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,506 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2019 )/Interest Expense (Q: Jun. 2019 )
=-1*821/-249
=3.30

* 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.


Anadarko Petroleum  (NYSE:APC) 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 .


Anadarko Petroleum Interest Coverage Related Terms

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


Anadarko Petroleum (Anadarko Petroleum) Business Description

Traded in Other Exchanges
N/A
Address
1201 Lake Robbins Drive, The Woodlands, TX, USA, 77380-1046
Anadarko Petroleum, based in The Woodlands, Texas, is one of the largest independent exploration and production companies in North America. Its asset base includes conventional and unconventional properties in the U.S. and deepwater oil and gas projects in the Gulf of Mexico and Africa. At the end of 2017, proven reserves totaled 1.44 billion boe, with net production of 672 mboe/d.
Executives
Paulett Eberhart director C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 32121
David E Constable director ONE ENTERPRISE DRIVE, ALISO VIEJO CA 92656
Michael K Grimm director 3141 HOOD STREET, SUITE 350, DALLAS TX 75219
Amanda M. Mcmillian officer: EVP and General Counsel 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Anthony R Chase director 10307 PACIFIC CENTER COURT, SAN DIEGO CA 92121
Benjamin Matthew Fink officer: EVP, Finance and CFO 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Mitchell W Ingram officer: EVP, Intl, DW & Exploration 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Daniel E Brown officer: EVP, US Onshore Operations 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Robert G Gwin officer: President 1201 LAKE ROBBINS DR, THE WOODLANDS TX 77380
Joseph W Gorder director P.O. BOX 696000, SAN ANTONIO TX 78269-6000
Alexandra Pruner director 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Christopher O Champion officer: SVP, CAO and Controller 5 GREENWAY PLAZA, SUITE 110, HOUSTON TX 77046
Peter J Fluor director 20 N. BROADWAY, OKLAHOMA CITY OK 73102
Eric D. Mullins director HERITAGE PLAZA, 1111 BAGBY STREET, SUITE 4600, HOUSTON TX 77002
R A Walker director, officer: Chairman & CEO 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380

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