Magnolia Oil & Gas (Magnolia Oil & Gas) Interest Coverage

: 340.96 (As of Dec. 2023)

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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. Magnolia Oil & Gas's Operating Income for the three months ended in Dec. 2023 was $138 Mil. Magnolia Oil & Gas's Interest Expense for the three months ended in Dec. 2023 was $-0 Mil. Magnolia Oil & Gas's interest coverage for the quarter that ended in Dec. 2023 was 340.96. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Magnolia Oil & Gas's Interest Coverage or its related term are showing as below:

MGY' s Interest Coverage Range Over the Past 10 Years
Min: 4.51 Med: 5022.91 Max: 16673.33
Current: 354.07

MGY's Interest Coverage is ranked better than
86.76% of 763 companies
in the Oil & Gas industry
Industry Median: 6.67 vs MGY: 354.07

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

Magnolia Oil & Gas Interest Coverage Historical Data

The historical data trend for Magnolia Oil & Gas'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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Magnolia Oil & Gas Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.51

19.44

45.81

16,673.33

Magnolia Oil & Gas Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																109.64	N/A	105.60	N/A	340.96

Competitive Comparison

For the Oil & Gas E&P subindustry, Magnolia Oil & Gas'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.

Magnolia Oil & Gas Interest Coverage Distribution

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

* The bar in red indicates where Magnolia Oil & Gas's Interest Coverage falls into.

Magnolia Oil & Gas 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.

Magnolia Oil & Gas's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Magnolia Oil & Gas's Interest Expense was $-0 Mil. Its Operating Income was $550 Mil. And its Long-Term Debt & Capital Lease Obligation was $393 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	550.22	/	-0.033
	=	16,673.33

Magnolia Oil & Gas's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Magnolia Oil & Gas's Interest Expense was $-0 Mil. Its Operating Income was $138 Mil. And its Long-Term Debt & Capital Lease Obligation was $393 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	138.088	/	-0.405
	=	340.96

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

Magnolia Oil & Gas (NYSE:MGY) 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 .

Magnolia Oil & Gas Interest Coverage Related Terms

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

Magnolia Oil & Gas (Magnolia Oil & Gas) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Magnolia Oil & Gas Corp (NYSE:MGY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Nine Greenway Plaza, Suite 1300, Houston, TX, USA, 77046

Website

https://www.magnoliaoilgas.com

Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquid (NGL) reserves. The Company's oil and natural gas properties are located in Karnes County and the Giddings area in South Texas, where the Company targets the Eagle Ford Shale and Austin Chalk formations. Its objective is to generate stock market value over the long term through consistent organic production growth, high full-cycle operating margins, and an efficient capital program with short economic paybacks. The company's operating segment is acquisition, development, exploration, and production of oil and natural gas properties located in the United States.

Executives

James R Larson	director	CSI COMPRESSCO LP, 1735 HUGHES LANDING BLVD STE 200, THE WOODLANDS TX 77380
Enervest, Ltd.	director, 10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
John B Walker	director, 10 percent owner	NINE GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Brian Corales	officer: SVP & Chief Financial Officer	C/O MAGNOLIA OIL & GAS CORPORATION, NINE GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Stephen I Chazen	director, officer: Chairman, President & CEO	1700 E. PUTNAM AVE, SUITE 500, OLD GREENWICH CT 06870
Enervest Energy Institutional Fund Xiv-c, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Angela M Busch	director	1 ECOLAB PLACE, SAINT PAUL MN 55102
Enervest Management Gp, L.c.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Investment Services, L.l.c.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-wic, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-3a, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-2a, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-a, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-c-aiv, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Michael G. Macdougall	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102