Matador Resources Company (MTDR)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,153,620 | 1,157,059 | 1,310,832 | 1,624,801 | 1,680,727 | 1,636,703 | 1,384,110 | 943,134 | 734,365 | 355,913 | -90,339 | -664,475 | -562,112 | -436,863 | -129,909 | 382,711 | 197,182 | 286,779 | 239,295 | 239,427 |
| Interest expense (ttm) | US$ in thousands | 121,520 | 102,237 | 82,825 | 67,088 | 67,164 | 69,848 | 71,841 | 71,289 | 74,687 | 75,931 | 76,173 | 76,530 | 76,692 | 76,041 | 75,985 | 75,756 | 73,873 | 68,664 | 60,829 | 50,765 |
| Interest coverage | 9.49 | 11.32 | 15.83 | 24.22 | 25.02 | 23.43 | 19.27 | 13.23 | 9.83 | 4.69 | -1.19 | -8.68 | -7.33 | -5.75 | -1.71 | 5.05 | 2.67 | 4.18 | 3.93 | 4.72 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,153,620K ÷ $121,520K
= 9.49
Matador Resources Co's interest coverage ratio has displayed a generally positive trend over the past eight quarters, indicating the company's ability to comfortably meet its interest obligations using its earnings before interest and taxes (EBIT). The ratio has fluctuated within a range from 9.95 to 26.19 during this period.
In the most recent quarter (Q4 2023), the interest coverage ratio was 9.95, showing a slight decrease compared to the previous quarter. However, the ratio remains at a level indicating that Matador Resources Co's EBIT is sufficient to cover its interest expenses nearly 10 times over.
Looking back over the past two years, there has been a clear improvement in the interest coverage ratio, with a significant increase from 14.16 in Q1 2022 to 25.36 in Q1 2023. This suggests an enhanced ability to cover interest payments with operating income.
Overall, the interest coverage ratio indicates that Matador Resources Co has been effectively managing its debt obligations, maintaining a strong ability to service its interest payments with its operational earnings. The consistent levels above 1 indicate a healthy financial position and a reduced risk of default due to interest obligations.
Peer comparison
Dec 31, 2023