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Fundamental Analysis Of Pengrowth Energy's Debt And Risk

|Includes:Pengrowth Energy Corporation (PGH)

Gaining knowledge about a company's debt and liabilities is a key component in understanding the risk of a company. An understanding of these factors will aid in the decision to invest, not to invest, or to stay invested in a company. There are many metrics involved in gaining knowledge about the debt of a company, but for this article, I will look at Pengrowth Energy Corporation's (NYSE:PGH) total debt, total liabilities, debt ratios and WACC.

All material is sourced from Google Finance, Morningstar and the company webpage.

1. Total Debt = Long-Term Debt + Short-Term Debt

Total debt is the sum of long-term debt, which is debt that is due in one year or more, and short-term debt, which is any debt that is due within one year.

  • 2008 - $1.525 billion + $0 million = $1.525 billion
  • 2009 - $982 million + $169 million = $1.151 billion
  • 2010 - $1.024 billion + $22 million = $1.046 billion
  • 2011 - $1.008 billion + $0 million = $1.008 billion
  • 2012 TTM - $1.662 billion + $86 million = $1.748 billion

Pengrowth's total debt has increased since 2008. In 2008, the company reported a total debt of $1.525 billion. In 2012 TTM, the company's total debt increased to $1.748 billion. Over the past 5 years, Pengrowth's total debt has increased by 14.62%.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: PGH