SM Energy Co (SM Energy Co) Interest Coverage

: 9.59 (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. SM Energy Co's Operating Income for the three months ended in Dec. 2023 was $229 Mil. SM Energy Co's Interest Expense for the three months ended in Dec. 2023 was $-24 Mil. SM Energy Co's interest coverage for the quarter that ended in Dec. 2023 was 9.59. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for SM Energy Co's Interest Coverage or its related term are showing as below:

SM' s Interest Coverage Range Over the Past 10 Years
Min: 0.05 Med: 7.15 Max: 16.29
Current: 10.03

SM's Interest Coverage is ranked better than
59.9% of 763 companies
in the Oil & Gas industry
Industry Median: 6.67 vs SM: 10.03

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

SM Energy Co Interest Coverage Historical Data

The historical data trend for SM Energy Co'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.

SM Energy Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.39

7.15

16.29

10.03

SM Energy Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																14.97	9.83	8.93	11.73	9.59

Competitive Comparison

For the Oil & Gas E&P subindustry, SM Energy Co'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.

SM Energy Co Interest Coverage Distribution

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

* The bar in red indicates where SM Energy Co's Interest Coverage falls into.

SM Energy Co 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.

SM Energy Co'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, SM Energy Co's Interest Expense was $-92 Mil. Its Operating Income was $919 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,575 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	918.752	/	-91.63
	=	10.03

SM Energy Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, SM Energy Co's Interest Expense was $-24 Mil. Its Operating Income was $229 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,575 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	229.405	/	-23.917
	=	9.59

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

SM Energy Co (NYSE:SM) 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 .

SM Energy Co Interest Coverage Related Terms

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SM Energy Co (SM Energy Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » SM Energy Co (NYSE:SM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SJL:Germany

Address

1700 Lincoln Street, Suite 3200, Denver, CO, USA, 80203

Website

https://sm-energy.com

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.

Executives

Julio M Quintana	director	3993 W. SAM HOUSTON PARKWAY N., STE. 100, HOUSTON TX 77043
Ramiro G Peru	director	WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46260
Rose M Robeson	director	370 17TH STREET, SUITE 2775, DENVER CO 80202
Patrick A Lytle	officer: Controller and PAO	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Julie Gray	officer: Vice President Marketing	1700 LINCOLN STREET, SUITE 3200, DENVER CO 80203
Herbert S Vogel	officer: Sr VP Portf Dev & Tech Servs	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
James Barker Lebeck	officer: SVP & General Counsel	1700 LINCOLN STREET, SUITE 3200, DENVER CO 80203
David W Copeland	officer: EVP, GC & Corp. Sec.	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
David J. Whitcomb	officer: VP-Marketing	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Mary Ellen Lutey	officer: VP & Regional Manager	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Anita M. Powers	director	9200 OAKDALE AVENUE, SUITE 900, LOS ANGELES CA 91311
William D Sullivan	director	TETRA TECHNOLOGIES, INC., 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Kenneth J. Knott	officer: VP- Land & Asst. Secretary	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Javan D Ottoson	officer: Executive VP & COO	ST. MARY LAND & EXPLORATION COMPANY, 1776 LINCOLN STREET, SUITE 700, DENVER CO 80203
Carla Jean Bailo	director	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203