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Shares of BP Rank the Highest in Terms of Debt to EBITDA Ratio in the Integrated Oil & Gas Industry (BP, OXY, CVX, LUKOY, XOM)

By Shiri Gupta

Below are the three companies in the Integrated Oil & Gas 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.

BP ranks highest with a a debt to EBITDA ratio of 3.4. Following is Occidental Petroleum with a a debt to EBITDA ratio of 2.4. Chevron ranks third highest with a a debt to EBITDA ratio of 1.7.

Lukoil OAO follows with a a debt to EBITDA ratio of 1.1, and Exxon Mobil rounds out the top five with a a debt to EBITDA ratio of 1.0.

SmarTrend recommended that subscribers consider buying shares of Lukoil OAO on July 5th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $42.72. Since that recommendation, shares of Lukoil OAO have risen 15.0%. We continue to monitor Lukoil OAO for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio Occidental Petroleum Chevron lukoil oao Exxon Mobil

Ticker(s): BP OXY CVX LUKOY XOM