Post by
Pumpjack on Apr 03, 2023 2:57pm
Earning Reporting
Why does Saturn report their earnings in EBITDA instead of Cash Flow or FFO like all of the other oil companies?
For example they quote a 0.7x debt to EBITDA, whereas all the other E+P's always quote Debt/Cash flow metrics.
As far as I understand EBITDA ignores interest and taxes, so essentially is leaving out cash expenses from the equation. Essentially making their debt ratio's look better. Am is thinking of this wrong?
Comment by
Suppe11 on Apr 04, 2023 9:35pm
Because Debt/Ebitda is the industry standard...regardless, what other companies quote.