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Cequence Net debt/EBITDA

What is the Net debt/EBITDA of Cequence?

The Net debt/EBITDA of Cequence Energy Ltd. is 18.41

What is the definition of Net debt/EBITDA?



The net debt to earnings before interest, taxes, depreciation, and amortization (Net debt/EBITDA) ratio measures financial leverage and the company’s ability to pay off its debt. It shows how long it would take the company to pay off all its debt with operations at the current level.

The net debt to EBITDA ratio is calculated as Net debt divided by EBITDA. It is similar to the debt to EBITDA ratio, but cash and cash equivalents are subtracted in net debt.

Net debt = short-term debt + long-term debt - cash and cash equivalents
EBITDA = net income + interest expense + taxes + depreciation + amortization

Lower debt debt to EBITDA ratio indicates the company is not heavily indebted and should be able to repay its obligations. Alternatively, higher ratio indicated the company is excessively indebted. The ratio varies between industries as different industries have different capital requirements. Usually, the ratio should be compared to a benchmark or an industry average to determine the company’s credit risk. Generally, a net debt to EBITDA ratio above 4 or 5 is considered high.

Net debt/EBITDA of companies in the Energy sector on TSX compared to Cequence

What does Cequence do?

Cequence Energy Ltd. engages in the acquisition, exploration, development, and production of petroleum and natural gas reserves in Western Canada. It primarily focuses on the development of its Simonette asset located in the Alberta Deep Basin. The company was formerly known as Sabretooth Energy Ltd. and changed its name to Cequence Energy Ltd. in July 2009. Cequence Energy Ltd. was incorporated in 2000 and is based in Calgary, Canada.

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