Permian Resources Corporation (PR)

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	809,460	575,461	757,527	868,393	730,974	742,957	510,436	329,896	328,196	106,067	22,387	-137,514	-780,120	-707,366	-664,158	-534,250	79,429	102,913	160,989	200,413
Interest expense (ttm)	US$ in thousands	177,209	153,543	141,768	119,268	95,645	70,218	56,101	56,957	61,288	65,039	68,067	70,256	69,192	67,658	65,186	62,252	55,991	48,063	39,351	30,705
Interest coverage		4.57	3.75	5.34	7.28	7.64	10.58	9.10	5.79	5.35	1.63	0.33	-1.96	-11.27	-10.46	-10.19	-8.58	1.42	2.14	4.09	6.53

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $809,460K ÷ $177,209K
= 4.57

Permian Resources Corp's interest coverage ratio has shown a gradual decline over the recent quarters, indicating a potential deterioration in the company's ability to cover its interest expenses with operating profits. The interest coverage ratio has decreased from 12.59 in Q3 2022 to 6.93 in Q4 2023, signaling a significant decrease in the company's ability to meet its interest obligations. This downward trend may raise concerns about the company's financial health and its ability to service its debt efficiently. It is crucial for stakeholders to closely monitor Permian Resources Corp's interest coverage ratio in the future to assess the company's financial stability and debt repayment capacity.