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. Cheniere Energy's
Operating Income
for the
three
months ended in Mar. 2026 was $-3,488 Mil. Cheniere Energy's Interest Expense for the
three
months ended in Mar. 2026 was $-255 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cheniere Energy's Interest Coverage or its related term are showing as below:
LNG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.09 Med: 2.35 Max: 13.57
Current: 4.79
LNG's Interest Coverage is ranked worse than 54.4% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs LNG: 4.79
Cheniere Energy (NYSE:LNG) 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 .
Cheniere Energy Interest Coverage Related Terms
Cheniere Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cheniere Energy'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.
LNG vs OKE, TRGP, MPLX: Interest Coverage Comparison
For the Oil & Gas Midstream subindustry, Cheniere Energy'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.
Cheniere Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Cheniere Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cheniere Energy'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:
Cheniere Energy did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Cheniere Energy (LNG) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cheniere Energy and its competitors. Over the past decade, Cheniere Energy's Interest Coverage has ranged from 0.09 to 13.57. According to the industry distribution chart, Cheniere Energy ranks #396 out of 728 companies in the Oil & Gas industry, placing it in the top 54.4%.
Is Cheniere Energy's Interest Coverage too high?
Cheniere Energy's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 13.57. Based on the distribution chart, Cheniere Energy ranks #396 out of 728 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Cheniere Energy has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cheniere Energy's Interest Coverage compare to OKE and TRGP?
According to the Oil & Gas industry distribution chart, Cheniere Energy ranks #396 out of 728 companies for Interest Coverage. This places Cheniere Energy in the lower half of its industry. The industry median Interest Coverage is 5.84. Historically, Cheniere Energy's own Interest Coverage has ranged from 0.09 to 13.57 over the past decade. 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. 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 Cheniere Energy 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. Cheniere Energy's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheniere Energy stock overvalued right now?
Based on GuruFocus' analysis, Cheniere Energy (LNG) is currently considered Fairly Valued. The stock's GF Value™ is $249.76, compared to a current price of $241.64 — trading 3.3% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Cheniere Energy's overall GF Score™ is 72/100 with 4 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 Cheniere Energy (LNG), the current Interest Coverage is 0 (At Loss) 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 Cheniere Energy (LNG) Overvalued in 2026?
Based on GuruFocus' analysis, Cheniere Energy stock appears to be undervalued.
The current stock price of $241.64 is trading 3.3% below its estimated GF Value™ of $249.76.
GuruFocus considers Cheniere Energy to be Fairly Valued.
Key valuation signals for LNG:
Interest Coverage: 0 (At Loss)
GF Value™: $249.76 vs. price of $241.64 (3.3% below fair value)
No single metric tells the full story. See the LNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheniere Energy is a liquified natural gas, or LNG, producer with two facilities in Corpus Christi, Texas and Sabine Pass, Louisiana. It generates most of its revenue through long-term contracts with customers on a fixed and variable fee payout structure. It also generates revenue by selling uncontracted LNG to customers on a short or one-time basis. A subsidiary, Cheniere Energy Partners, owns the Sabine Pass facility and trades as a master limited partnership.
72GF Score
Get the complete analysis for LNG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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