EBITDA definition
Examples of EBITDA in a sentence
As a result of a challenging environment and the impact of the gap in the timing between funding our capital program and the time the assets are placed in service and begin to generate cash flow, we expect our long-term debt-to-adjusted EBITDA to be above our target range for the near-term.
From time to time, we may be outside the parameters of our targeted credit profile as, in certain cases, capital expenditures and acquisitions may be financed initially using debt or there may be delays in realizing anticipated synergies from acquisitions or contributions from expansion capital projects to adjusted EBITDA.
We target a credit profile with the following attributes: • an average long-term debt-to-total capitalization ratio of approximately 50% or less; • a long-term debt-to-adjusted EBITDA multiple averaging between 3.5x and 4.0x (adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and further adjusted for selected items that impact comparability.
We expect this leverage ratio will improve and return to our targeted levels as we execute our Leverage Reduction Plan (discussed further below), and as the industry recovers and we realize EBITDA growth from our capital investments.