Karoon Energy (ASX:KAR) Debt-to-EBITDA : 0.86 (As of Dec. 2023)

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What is Karoon Energy Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Karoon Energy's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$73 Mil. Karoon Energy's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$658 Mil. Karoon Energy's annualized EBITDA for the quarter that ended in Dec. 2023 was A$854 Mil. Karoon Energy's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.86.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Karoon Energy's Debt-to-EBITDA or its related term are showing as below:

ASX:KAR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.02 Med: 4.23 Max: 19.64
Current: 1.08

During the past 13 years, the highest Debt-to-EBITDA Ratio of Karoon Energy was 19.64. The lowest was -0.02. And the median was 4.23.

ASX:KAR's Debt-to-EBITDA is ranked better than
65.56% of 720 companies
in the Oil & Gas industry
Industry Median: 1.76 vs ASX:KAR: 1.08

Karoon Energy Debt-to-EBITDA Historical Data

The historical data trend for Karoon Energy's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Karoon Energy Debt-to-EBITDA Chart

Karoon Energy Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-EBITDA

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-0.02

7.71

19.64

0.75

Karoon Energy Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															-2.32	1.87	1.50	0.82	0.86

Competitive Comparison of Karoon Energy's Debt-to-EBITDA

For the Oil & Gas E&P subindustry, Karoon Energy's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Karoon Energy's Debt-to-EBITDA Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Karoon Energy's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Karoon Energy's Debt-to-EBITDA falls into.

Karoon Energy Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Karoon Energy's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(70.328	+	340.465)	/	551.3
	=	0.75

Karoon Energy's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(72.907	+	657.509)	/	854.27
	=	0.86

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Dec. 2023) EBITDA data.

Karoon Energy (ASX:KAR) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Karoon Energy Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Karoon Energy's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Karoon Energy (ASX:KAR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Karoon Energy Ltd (ASX:KAR) » Definitions » Debt-to-EBITDA

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KRNGY:USA KRNGF:USA LBL:Germany

Address

6 Riverside Quay, Level 3, Suite 3.02, Southbank, Melbourne, VIC, AUS, 3006

Website

https://www.karoonenergy.com.au

Karoon produces around 8 million barrels of oil annually from its wholly owned Bauna field in Brazil's offshore Santos basin. The company acquired Bauna from Petrobras in 2020 and has been steadily increasing production via well interventions and new developments. Field life is approaching eight years based on proven and probable 2P reserves of 55 million barrels at end December 2022, though this excludes a further 82 million barrels in 2C contingent resources which which have potential to increase life further. We credit life of approximately 10 years, assuming partial conversion of 2C contingent resources into reserve category with drilling. There are also prospective untested targets within Karoon's permits which could potentially add further reserves in the medium term.