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What You Should Know about Bill Barrett’s Leverage

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Dec. 12 2016, Published 4:50 p.m. ET

Bill Barrett’s leverage

Since 3Q14, Bill Barrett’s (BBG) total debt has fallen 14%. In 3Q16, the company’s total debt was $711.9 million compared to ~$804 million in 3Q15, a decline of 11%.

However, BBG’s total-debt-to-equity ratio rose from 88% in 3Q14 to ~142% in 3Q15. Its total-debt-to-equity ratio did fall slightly to 139.8% in 3Q16, but still remains high. A debt-to-equity ratio over 100% means that a company has more debt than equity. The higher the ratio, the riskier the company.

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Bill Barrett’s peers

Bill Barrett’s upstream peers Cimarex Energy (XEC), Concho Resources (CXO), and Hess (HES) have debt-to-equity ratios of ~64.3%, ~38.1%, and 37%, respectively. These companies make up 3.4% of the Energy Select Sector SPDR (XLE).

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