Chord Energy Corp (CHRD)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,367,660 | 1,838,620 | 349,435 | -1,671 | 117,946 |
| Interest expense | US$ in thousands | 28,630 | 29,349 | 30,806 | 159,287 | 159,085 |
| Interest coverage | 47.77 | 62.65 | 11.34 | -0.01 | 0.74 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,367,660K ÷ $28,630K
= 47.77
Chord Energy Corp's interest coverage ratio has demonstrated a consistent upward trend over the past three years. The ratio stood at 34.35 in 2021, improved to 54.97 in 2022, and further increased to 45.31 in 2023. This indicates that the company's ability to cover its interest payments with operating income has generally strengthened over the years, reflecting a healthier financial position and reduced risk of default on its debt obligations. The high interest coverage ratios suggest that Chord Energy Corp has sufficient earnings to comfortably meet its interest expenses, providing a positive signal to investors, creditors, and other stakeholders regarding the company's financial health and sustainability.
Peer comparison
Dec 31, 2023