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Lonestar Resources US (Lonestar Resources US) Financial Strength : 0 (As of Jun. 2021)


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What is Lonestar Resources US Financial Strength?

Lonestar Resources US has the Financial Strength Rank of 0.

Warning Sign:

Lonestar Resources US Inc displays poor financial strength. Usually this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Lonestar Resources US's Interest Coverage for the quarter that ended in Jun. 2021 was 6.72. Lonestar Resources US's debt to revenue ratio for the quarter that ended in Jun. 2021 was 1.44. As of today, Lonestar Resources US's Altman Z-Score is -0.31.


Competitive Comparison of Lonestar Resources US's Financial Strength

For the Oil & Gas E&P subindustry, Lonestar Resources US's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Lonestar Resources US's Financial Strength falls into.



Lonestar Resources US Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

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

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

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

2. Debt to revenue ratio. The lower, the better.

Lonestar Resources US's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(22.157 + 243.199) / 184.108
=1.44

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Lonestar Resources US has a Z-score of -0.31, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.31 is in distress zone. This implies bankrupcy possibility in the next two years.

* 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.


Lonestar Resources US  (OTCPK:LONE) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Lonestar Resources US has the Financial Strength Rank of 0.


Lonestar Resources US Financial Strength Related Terms

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Lonestar Resources US (Lonestar Resources US) Business Description

Comparable Companies
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.