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Comparing the Debt Positions of EQT, NBL, COG, and AR

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EQT and COG: Lowest net debt-to-EBITDA ratio

EQT’s (EQT) net debt-to-EBITDA[1. earnings before interest, tax, depreciation, and amortization] ratio in 1Q16 was 1.3x. This was the lowest among the peer group under review in this series.

EQT has reduced its net debt by ~17% since 1Q15. However, its 1Q16 trailing 12-month EBITDA has declined more significantly year-over-year by ~40%. This explains why its 1Q16 net debt-to-adjusted EBITDA ratio was higher compared to 1Q15.

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Cabot Oil and Gas’s (COG) 1Q16 net debt-to-EBITDA ratio 1.7x was also lower compared to its peers. As in EQT’s case, COG also reduced its net debt in 1Q16 versus 1Q15. However, its trailing 12-month EBITDA decreased even more significantly, causing its 1Q16 net debt-to-adjusted EBITDA ratio to be higher in 1Q16.

NBL and AR’s net debt-to-EBITDA ratios were over 3x

Noble Energy’s (NBL) net debt-to-EBITDA ratio was ~3.4x in 1Q16 compared to ~1.7x in 1Q15. Its 1Q16 net debt increased by 58% compared to 1Q15. Its adjusted trailing 12-month EBITDA fell by 22% in 1Q16 compared to 1Q15, explaining the higher ratio in 1Q16.

Antero Resources’s (AR) 1Q16 net debt-to-EBITDA ratio was the highest among its peers at ~4x, compared to ~3.6x in 1Q15. AR’s 1Q16 net debt increased by 17% compared to 1Q15. Its adjusted trailing-12-month EBITDA also increased by 1.4%, which explains the higher ratio versus 1Q15.

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