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High Debt Poses Risk for Some Oil & Gas Independents

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Athabasca Oil
Athabasca Oil Corp, based in Calgary, Alberta, has the highest long term debt-to-revenue ratio of any company in the CSI industry group.

Average long-term debt for independent oil & gas explorers has soared in the past three years increasing the bankruptcy risk for some companies. 

With a CSI score of 2.40, high credit standards and a seemingly strong balance sheet, Canadian oil & gas explorer Athabasca Oil Corp. figures to be a low bankruptcy risk.  But, a closer examination reveals a massive amount of long-term debt, over six times annual revenue, that is effectively covered up in the debts-to-assets ratio by the companies large asset-base.

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