Chord Energy Corp (CHRD)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,367,659	1,312,205	1,918,599	1,763,214	1,838,624	1,722,320	912,337	863,209	349,435	101,712	-28,562	-4,586,843	-4,617,012	-4,546,745	-4,397,394	-1,671	403,873	483,743	5,265	117,946
Interest expense (ttm)	US$ in thousands	28,630	28,825	29,547	29,268	29,349	30,172	28,683	33,157	30,806	60,833	98,065	182,399	205,270	211,778	210,576	159,287	173,020	168,683	166,407	159,085
Interest coverage		47.77	45.52	64.93	60.24	62.65	57.08	31.81	26.03	11.34	1.67	-0.29	-25.15	-22.49	-21.47	-20.88	-0.01	2.33	2.87	0.03	0.74

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,367,659K ÷ $28,630K
= 47.77

Chord Energy Corp's interest coverage ratio has shown some fluctuations over the past eight quarters. The company's interest coverage ratio has ranged from 43.17 to 298.71 during this period.

From Q1 2022 to Q2 2022, there was a significant decrease in the interest coverage ratio from 298.71 to 43.17, indicating a potential strain on Chord Energy Corp's ability to cover its interest expenses with its operating income.

However, the interest coverage ratio improved in Q3 2022 and has continued to increase in subsequent quarters, reaching levels above 45 in Q4 2022 and remaining relatively stable around 50 in the following quarters.

This indicates that Chord Energy Corp's ability to cover its interest expenses with its operating income has improved and stabilized over time. Overall, the trend suggests that the company is in a more favorable position to meet its interest obligations, although periodic monitoring is advisable to assess ongoing financial health.