Another variation of the Debt/EBITDA ratio is the Debt/EBITDAX ratio, which is similar, except EBITDAX is EBITDA before exploration costs for successful efforts companies. Media Releases. Japan's pledge to reach net-zero emissions by 2050 has thrown into doubt the future of Australia's $38 billion export trade in coal and LNG with the country. However, there are a few disadvantages to using this ratio. (See also: Debt Ratios: An Introduction.). The remote Beetaloo Basin could be supplying the east coast with gas several years before many are assuming, says Joel Riddle, chief executive of explorer Tamboran Resources. For many years, FGE's leading independent analytics and forecasts of the oil markets has benefited a wide variety of clients across the globe. With a basic understanding of these ratios in oil and gas, investors can better understand the fundamentals of these energy stocks. Energy Market model for Europe. Capra Energy develops customised market analytics and price forecasting models to support our clients' global gas & LNG supply, procurement and trading strategies. The debt/equity ratio, probably one of the most common financial leverage ratios, is calculated by dividing total liabilities by shareholders equity. Take a look. For one, it ignores all tax expenses when the government always gets paid first. The project will have a "junk" credit rating and be unable to attract debt finance without an urgent change to the energy market rules, says NSW grid owner TransGrid. Since it is important to know how well a business is managing its debt, the following leverage ratios are used: Debt/EBITDA, EBIT/Interest Expense, Debt/Cap and the Debt-to-Equity Ratios. An oil and gas company should cover their interest and fixed charges by at least a factor of 2:1 or, even more ideally, 3:1. Net debt shows how much cash would remain if all debts were paid off and if a company has enough liquidity to meet its debt obligations. Fundamental Data & Analysis. FGE's coverage of the NGLs market spans the full breadth of the value chain, from supply, demand, pricing, balances, trade flows, and more, helping clients better understand which way the market is heading. Capra Energy's LNGdash platform provides the most relevant, timely and reliable fundamental data and analysis available for global gas. This suite of Monthly reports incorporates a detailed, internally-consistent database covering crude/NGL output and main oil products supply/demand encompassing: crude/NGL supply, refinery runs, refinery output, products demand, crude/products stocks, and regional/global balances. Karoon Energy has appointed Julian Fowles to chief executive officer and managing director as the junior oil and gas explorer prepares to expand its operations in Brazil. Our coverage of the refining industry is underpinned by in-house models and over five decades of refining expertise. Predictions on business development … EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance. Since oil and gas companies typically have a lot of debt on their balance sheets, this ratio is useful in determining how many years of EBITDA would be necessary in order to pay back all the debt. Here’s what's changed. EBIT and EBITDA are two metrics that, in theory, can be used to pay the interest on the debt and repay the principal. Leading Fundamental Analysis Up-to-date comprehensive analysis of key fundamental drivers in the global oil markets, together with detailed projections of crude/NGL production, refinery output, and products demand. FGE’s core analytical block for its perspectives on future developments in oil demand, supply and prices to 2040. A low ratio indicates that the company will be able to pay back its debts faster. Having too much debt, however, leaves firms vulnerable to economic downturns and interest rate hikes. Executive Vice Chairman and Managing Director, FGE USA, Managing Director, Global Gas/LNG Team & FGE Singapore, Managing Director, Middle East, FGE London, Chief Operating Officer (COO), FGE London, Refining data (refinery runs, refinery output, refining margins, product cracks, and refinery downtime), Regional/global crude & products balances, Short-term forecasts (12-months) and 12-months history, Four monthly reports (Global Oil Market Drivers, Product Imbalances & Pressure Points, Crude Supply/Trade & Price Differentials, and Refinery Margins and Product Cracks) Associated data files (excel), Telephone, email, video conferencing consultation with our regional oil experts, Access to proprietary supply, demand, and products balances data through FGE's Oil Online Database, Annual client meeting with updates on FGE's outlook for the region's oil market (can be tailored around the client's needs).