Energy Transfer LPET -1.46%84 Interest Coverage is 3.15 as of Mar. 2026, which is 9% above its 10-year median of 2.89. GuruFocus rates ET with a GF Score™ of 84/100 and a GF Value™ of $19.06 (Fairly Valued). The stock has 10 warning signs investors should review. Among 728 Oil & Gas companies, Energy Transfer LP ranks worse than 70.74% 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. Energy Transfer LP's
Operating Income
for the
three
months ended in Mar. 2026 was $2,983 Mil. Energy Transfer LP's Interest Expense for the
three
months ended in Mar. 2026 was $-947 Mil.
Energy Transfer LP's interest coverage for the quarter that ended in Mar. 2026 was 3.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Energy Transfer LP's Interest Coverage or its related term are showing as below:
ET'
s Interest Coverage Range Over the Past 10 Years
Min: 1.58 Med: 2.89 Max: 3.89
Current: 2.71
ET's Interest Coverage is ranked worse than 70.74% of 728
companies
in the Oil & Gas industry
Industry Median: 5.885
vs ET: 2.71
Energy Transfer LP (NYSE:ET) Interest Coverage Explanation
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 .
Energy Transfer LP Interest Coverage Related Terms
Energy Transfer LP Interest Coverage Historical Data
* Premium members only.
The historical data trend for Energy Transfer LP'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.
ET vs KMI, MPLX, TRGP: Interest Coverage Comparison
For the Oil & Gas Midstream subindustry, Energy Transfer LP'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.
Energy Transfer LP Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Energy Transfer LP's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Energy Transfer LP'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.
Energy Transfer LP (ET) has a Interest Coverage of 3.15 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Energy Transfer LP and its competitors. This is near median its historical median of 2.89. Over the past decade, Energy Transfer LP's Interest Coverage has ranged from 1.58 to 3.89. According to the industry distribution chart, Energy Transfer LP ranks #515 out of 728 companies in the Oil & Gas industry, placing it in the top 70.7%.
Is Energy Transfer LP's Interest Coverage too high?
Energy Transfer LP's current Interest Coverage of 3.15 is near median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 3.89. The Oil & Gas industry median Interest Coverage is 5.89. Energy Transfer LP's value of 3.15 is 46.5% below this industry median. Based on the distribution chart, Energy Transfer LP ranks #515 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Energy Transfer LP has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Energy Transfer LP's Interest Coverage compare to KMI and MPLX?
According to the Oil & Gas industry distribution chart, Energy Transfer LP ranks #515 out of 728 companies for Interest Coverage. This places Energy Transfer LP in the lower half of its industry. The industry median Interest Coverage is 5.89. Energy Transfer LP's value of 3.15 is 46.5% below this benchmark. Historically, Energy Transfer LP's own Interest Coverage has ranged from 1.58 to 3.89 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 5.89, Energy Transfer LP has consistently been below 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. Energy Transfer LP's current Interest Coverage of 3.15 is 46.5% below 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 Energy Transfer LP 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. Energy Transfer LP's current Interest Coverage is 3.15, which is near median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Transfer LP stock overvalued right now?
Based on GuruFocus' analysis, Energy Transfer LP (ET) is currently considered Fairly Valued. The stock's GF Value™ is $19.06, compared to a current price of $18.94 — trading 0.6% below its estimated fair value. The current Interest Coverage is 3.15, which is near median its 10-year median of 2.89 and 46.5% below the Oil & Gas industry median of 5.89. Energy Transfer LP's overall GF Score™ is 84/100 with 10 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 Energy Transfer LP (ET), the current Interest Coverage is 3.15 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 Energy Transfer LP (ET) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Transfer LP stock appears to be undervalued.
The current stock price of $18.94 is trading 0.6% below its estimated GF Value™ of $19.06.
GuruFocus considers Energy Transfer LP to be Fairly Valued.
Key valuation signals for ET:
Interest Coverage: 3.15 (near median its 10-year median of 2.89)
GF Value™: $19.06 vs. price of $18.94 (0.6% below fair value)
Industry Position: 46.5% below the Oil & Gas median (#515 of 728)
No single metric tells the full story. See the ET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Transfer is a diversified midstream firm operating from wellhead to consuming demand. It handles natural gas, natural gas liquids, crude oil, and refined products. Commodities are moved through its network of field-level gathering and processing to refineries and demand centers. Operations are concentrated in Texas and the midcontinent United States. It also controls Sunoco and USA Compression through its general partner relationship.
84GF Score
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