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Relatively High Debt to EBITDA Ratio Detected in Shares of Cheniere Energy in the Oil & Gas Storage & Transportation Industry (LNG, STNG, GLOG, LPG, ASC)

By Amy Schwartz

Below are the three companies in the Oil & Gas Storage & Transportation 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.

Cheniere Energy ranks highest with a a debt to EBITDA ratio of 36.7. Following is Scorpio Tankers with a a debt to EBITDA ratio of 12.6. Gaslog Ltd ranks third highest with a a debt to EBITDA ratio of 9.5.

Dorian Lpg Ltd follows with a a debt to EBITDA ratio of 9.5, and Ardmore Shipping rounds out the top five with a a debt to EBITDA ratio of 9.1.

SmarTrend recommended that its subscribers protect gains by selling shares of Dorian Lpg Ltd on April 18th, 2017 by issuing a Downtrend alert when the shares were trading at $9.38. Since that call, shares of Dorian Lpg Ltd have fallen 24.7%. 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 cheniere energy scorpio tankers gaslog ltd dorian lpg ltd nyse:asc ardmore shipping

Ticker(s): LNG STNG GLOG LPG