Occidental PetroleumFRA:OPC -1.09%58 Interest Coverage is 2.15 as of Mar. 2026, which is 43% below its 10-year median of 3.74. GuruFocus rates FRA:OPC with a GF Score™ of 58/100 and a GF Value™ of €40.30 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 728 Oil & Gas companies, Occidental Petroleum ranks worse than 71.29% 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. Occidental Petroleum's
Operating Income
for the
three
months ended in Mar. 2026 was €802 Mil. Occidental Petroleum's Interest Expense for the
three
months ended in Mar. 2026 was €-374 Mil.
Occidental Petroleum's interest coverage for the quarter that ended in Mar. 2026 was 2.15.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Occidental Petroleum's Interest Coverage or its related term are showing as below:
FRA:OPC'
s Interest Coverage Range Over the Past 10 Years
Min: 2.66 Med: 3.74 Max: 13.27
Current: 2.66
FRA:OPC's Interest Coverage is ranked worse than 71.29% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs FRA:OPC: 2.66
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 .
Occidental Petroleum Interest Coverage Related Terms
Occidental Petroleum Interest Coverage Historical Data
* Premium members only.
The historical data trend for Occidental Petroleum'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.
FRA:OPC vs FANG, DVN, EOG: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Occidental Petroleum'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.
Occidental Petroleum Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Occidental Petroleum's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Occidental Petroleum'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.
Occidental Petroleum (FRA:OPC) has a Interest Coverage of 2.15 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Occidental Petroleum and its competitors. This is 43% below median its historical median of 3.74. Over the past decade, Occidental Petroleum's Interest Coverage has ranged from 2.66 to 13.27. According to the industry distribution chart, Occidental Petroleum ranks #519 out of 728 companies in the Oil & Gas industry, placing it in the top 71.3%.
Is Occidental Petroleum's Interest Coverage too high?
Occidental Petroleum's current Interest Coverage of 2.15 is 43% below median its 10-year median of 3.74. Over the past 10 years, this metric has ranged from a low of 2.66 to a high of 13.27. The Oil & Gas industry median Interest Coverage is 5.84. Occidental Petroleum's value of 2.15 is 63.2% below this industry median. Based on the distribution chart, Occidental Petroleum ranks #519 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Occidental Petroleum has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Occidental Petroleum's Interest Coverage compare to FANG and DVN?
According to the Oil & Gas industry distribution chart, Occidental Petroleum ranks #519 out of 728 companies for Interest Coverage. This places Occidental Petroleum in the lower half of its industry. The industry median Interest Coverage is 5.84. Occidental Petroleum's value of 2.15 is 63.2% below this benchmark. Historically, Occidental Petroleum's own Interest Coverage has ranged from 2.66 to 13.27 over the past decade. While the company's 10-year median is 3.74 vs. the industry median of 5.84, Occidental Petroleum 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 5.84, 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. Occidental Petroleum's current Interest Coverage of 2.15 is 63.2% 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 Occidental Petroleum and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Occidental Petroleum's current Interest Coverage is 2.15, which is 43% below median its own 10-year median of 3.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Occidental Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Occidental Petroleum (FRA:OPC) is currently considered Modestly Overvalued. The stock's GF Value™ is €40.30, compared to a current price of €44.56 — trading 10.6% above its estimated fair value. The current Interest Coverage is 2.15, which is 43% below median its 10-year median of 3.74 and 63.2% below the Oil & Gas industry median of 5.84. Occidental Petroleum's overall GF Score™ is 58/100 with 2 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 Occidental Petroleum (FRA:OPC), the current Interest Coverage is 2.15 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 Occidental Petroleum (FRA:OPC) Overvalued in 2026?
Based on GuruFocus' analysis, Occidental Petroleum stock appears to be overvalued.
The current stock price of €44.56 is trading 10.6% above its estimated GF Value™ of €40.30.
GuruFocus considers Occidental Petroleum to be Modestly Overvalued.
Key valuation signals for FRA:OPC:
Interest Coverage: 2.15 (43% below median its 10-year median of 3.74)
GF Value™: €40.30 vs. price of €44.56 (10.6% above fair value)
Industry Position: 63.2% below the Oil & Gas median (#519 of 728)
No single metric tells the full story. See the FRA:OPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Occidental Petroleum is an independent exploration and production company with operations in the United States, Latin America, and the Middle East. At the end of 2025, the company reported net proved reserves of 4.6 billion barrels of oil equivalent. Net production averaged 1.4 million barrels of oil equivalent per day in 2025 at a ratio of roughly 74% oil and natural gas liquids and 26% natural gas.
58GF Score
Get the complete analysis for FRA:OPC
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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