Correct Rob. It is a TTM view. The methodology is explained in the link I gave for SSN's credit facility with MOB.
* For Mar'14 it was x4.
* For Jun'14 it was add the last two Qtrs and x2.
* For Sep'14 it was add the last 3 Qtr's and x4 and divide by 3
* For Dec'14 it was add the last 4 Qtrs
Taken from the loan agreement ""Test Period" means, at any time, the four consecutive fiscal quarters of Borrower then last ended (in each case taken as one accounting period) for which financial statements have been or are required to be delivered pursuant to this Agreement"
So my inference is if Dec (which is not as bad as this qtr coming) caused a breach then rolling off Mar'14 (which when annualized did not cause a breach and is therefore a good Qtr) must logically infer the numerical relationship gets worse not better. Don't you think or have I got it wrong.
The only thing I keep trying to look at that saves those numbers is the DD&A and Capex - but Capex has dropped (DD&A will rise of course). Hedging appears to be treated as "non-recurring gains" for EBITDAX purposes.
Let us know your thoughts
SSN Price at posting:
1.1¢ Sentiment: None Disclosure: Not Held
