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Highest Debt to EBITDA Ratio in the Oil & Gas Exploration & Production Industry Detected in Shares of Clayton Williams Energy (CWEI, CXO, WPX, WLL, CPE)

By David Diaz

Below are the three companies in the Oil & Gas Exploration & Production industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Clayton Williams Energy ranks highest with a a debt to EBITDA ratio of 381.1. Concho Resources is next with a a debt to EBITDA ratio of 29.9. WPX Energy ranks third highest with a a debt to EBITDA ratio of 12.9.

Whiting Petroleum follows with a a debt to EBITDA ratio of 11.5, and Callon Petroleum rounds out the top five with a a debt to EBITDA ratio of 9.0.

SmarTrend recommended that its subscribers protect gains by selling shares of Whiting Petroleum on March 8th, 2017 by issuing a Downtrend alert when the shares were trading at $9.74. Since that call, shares of Whiting Petroleum have fallen 12.3%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio clayton williams energy concho resources wpx energy whiting petroleum callon petroleum

Ticker(s): CWEI CXO WPX WLL CPE