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Top 5 Companies in the Gas Utilities Industry With the Highest Debt to EBITDA Ratio (SJI, NJR, WGL, NWN, ATO)

By Nick Russo

Below are the three companies in the Gas Utilities 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.

South Jersey Ind ranks highest with a a debt to EBITDA ratio of 5.1. New Jersey Res is next with a a debt to EBITDA ratio of 4.8. Wgl Hldgs Inc ranks third highest with a a debt to EBITDA ratio of 4.5.

Northwest Nat Gs follows with a a debt to EBITDA ratio of 3.2, and Atmos Energy rounds out the top five with a a debt to EBITDA ratio of 3.2.

SmarTrend recommended that subscribers consider buying shares of Atmos Energy on July 20th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $85.12. Since that recommendation, shares of Atmos Energy have risen 3.6%. We continue to monitor Atmos Energy for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio south jersey ind new jersey res wgl hldgs inc northwest nat gs Atmos Energy

Ticker(s): SJI NJR WGL NWN ATO