Chord Energy Corp (CHRD)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,160,556	1,275,789	1,234,438	1,215,388	1,374,392	1,323,080	1,914,348	1,862,031	1,432,787	1,286,595	514,117	389,446	321,460	830,224	713,887	558,779	-3,852,334	-4,599,048	-4,590,433	-4,436,283
Interest expense (ttm)	US$ in thousands	56,523	45,821	33,741	28,761	27,106	25,579	26,061	25,782	26,206	27,285	36,674	52,296	51,161	51,335	70,344	87,713	176,545	214,616	220,706	223,952
Interest coverage		20.53	27.84	36.59	42.26	50.70	51.73	73.46	72.22	54.67	47.15	14.02	7.45	6.28	16.17	10.15	6.37	-21.82	-21.43	-20.80	-19.81

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,160,556K ÷ $56,523K
= 20.53

To analyze the interest coverage of Chord Energy Corp, we examine the trend in the interest coverage ratio over the period from March 31, 2020, to December 31, 2024.

The interest coverage ratio is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is more capable of covering its interest obligations.

From March 31, 2020, to December 31, 2020, Chord Energy Corp had negative interest coverage ratios, indicating that the company's EBIT was insufficient to cover its interest expenses during this period.

However, starting from March 31, 2021, the interest coverage ratio turned positive, indicating an improvement in the company's ability to cover its interest payments. The ratios steadily increased throughout 2021 and 2022, reaching peak levels in March 31, 2023, and June 30, 2023.

From September 30, 2023, to December 31, 2024, the interest coverage ratio experienced a decline, although it remained positive. This could suggest a period of decreased profitability or higher interest expenses relative to earnings.

The significant increase in the interest coverage ratio observed from March 31, 2020, to December 31, 2024, reflects an overall improvement in Chord Energy Corp's ability to meet its interest obligations and indicates a positive trend in the company's financial health during this period.