APAAPA -0.54%57 Interest Coverage is 17.98 as of Mar. 2026, which is 174% above its 10-year median of 6.57. GuruFocus rates APA with a GF Score™ of 57/100 and a GF Value™ of $26.07 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 728 Oil & Gas companies, APA ranks better than 67.17% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. APA's
Operating Income
for the
three
months ended in Mar. 2026 was $1,007 Mil. APA's Interest Expense for the
three
months ended in Mar. 2026 was $-56 Mil.
APA's interest coverage for the quarter that ended in Mar. 2026 was 17.98.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for APA's Interest Coverage or its related term are showing as below:
APA'
s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 6.57 Max: 16.18
Current: 12.11
APA's Interest Coverage is ranked better than 67.17% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs APA: 12.11
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
APA Interest Coverage Related Terms
APA Interest Coverage Historical Data
* Premium members only.
The historical data trend for APA's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Oil & Gas E&P subindustry, APA's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
APA Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, APA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where APA's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
APA (APA) has a Interest Coverage of 17.98 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on APA and its competitors. This is 174% above median its historical median of 6.57. Over the past decade, APA's Interest Coverage has ranged from 0.41 to 16.18. According to the industry distribution chart, APA ranks #239 out of 728 companies in the Oil & Gas industry, placing it in the top 32.8%.
Is APA's Interest Coverage too high?
APA's current Interest Coverage of 17.98 is 174% above median its 10-year median of 6.57. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 16.18. The Oil & Gas industry median Interest Coverage is 5.89. APA's value of 17.98 is 205.5% above this industry median. Based on the distribution chart, APA ranks #239 out of 728 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, APA has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does APA's Interest Coverage compare to AR and OVV?
According to the Oil & Gas industry distribution chart, APA ranks #239 out of 728 companies for Interest Coverage. This puts APA in the upper half of its industry. The industry median Interest Coverage is 5.89. APA's value of 17.98 is 205.5% above this benchmark. Historically, APA's own Interest Coverage has ranged from 0.41 to 16.18 over the past decade. While the company's 10-year median is 6.57 vs. the industry median of 5.89, APA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. APA's current Interest Coverage of 17.98 is 205.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on APA and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. APA's current Interest Coverage is 17.98, which is 174% above median its own 10-year median of 6.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is APA stock overvalued right now?
Based on GuruFocus' analysis, APA (APA) is currently considered Modestly Overvalued. The stock's GF Value™ is $26.07, compared to a current price of $33.15 — trading 27.2% above its estimated fair value. The current Interest Coverage is 17.98, which is 174% above median its 10-year median of 6.57 and 205.5% above the Oil & Gas industry median of 5.89. APA's overall GF Score™ is 57/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For APA (APA), the current Interest Coverage is 17.98 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is APA (APA) Overvalued in 2026?
Based on GuruFocus' analysis, APA stock appears to be overvalued.
The current stock price of $33.15 is trading 27.2% above its estimated GF Value™ of $26.07.
GuruFocus considers APA to be Modestly Overvalued.
Key valuation signals for APA:
Interest Coverage: 17.98 (174% above median its 10-year median of 6.57)
GF Value™: $26.07 vs. price of $33.15 (27.2% above fair value)
Industry Position: 205.5% above the Oil & Gas median (#239 of 728)
No single metric tells the full story. See the APA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
APA Corp is an independent exploration and production company. It develops and produces crude oil, natural gas, and natural gas liquids. The company's business has oil and gas operations in four segments: Egypt, the North Sea, Suriname, and the U.S. The company generates the majority of its revenue from the U.S. reporting segment. The company also has exploration interests in Uruguay, Alaska, and other international locations.
57GF Score
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