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Magnolia Oil & GasMGY +4.03%93 Interest Coverage is 36.12 as of Jun. 2026, which is 11% below its 10-year median of 40.72. GuruFocus rates MGY with a GF Score™ of 93/100 and a GF Value™ of $29.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 744 Oil & Gas companies, Magnolia Oil & Gas ranks better than 75.67% 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. Magnolia Oil & Gas's
Operating Income
for the
three
months ended in Jun. 2026 was $243 Mil. Magnolia Oil & Gas's Interest Expense for the
three
months ended in Jun. 2026 was $-7 Mil.
Magnolia Oil & Gas's interest coverage for the quarter that ended in Jun. 2026 was 36.12.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Magnolia Oil & Gas's Interest Coverage or its related term are showing as below:
MGY'
s Interest Coverage Range Over the Past 10 Years
Min: 4.51 Med: 40.72 Max: 16673.33
Current: 24.1
MGY's Interest Coverage is ranked better than 75.67% of 744
companies
in the Oil & Gas industry
Industry Median: 6.125
vs MGY: 24.10
Magnolia Oil & Gas (NYSE:MGY) 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 .
Magnolia Oil & Gas Interest Coverage Related Terms
Magnolia Oil & Gas Interest Coverage Historical Data
* Premium members only.
The historical data trend for Magnolia Oil & Gas'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.
MGY vs MUR, MTDR, CNX: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Magnolia Oil & Gas'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.
Magnolia Oil & Gas Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Magnolia Oil & Gas's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Magnolia Oil & Gas'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.
Magnolia Oil & Gas (MGY) has a Interest Coverage of 36.12 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Magnolia Oil & Gas and its competitors. This is 11% below median its historical median of 40.72. Over the past decade, Magnolia Oil & Gas' Interest Coverage has ranged from 4.51 to 16,673.33. According to the industry distribution chart, Magnolia Oil & Gas ranks #181 out of 744 companies in the Oil & Gas industry, placing it in the top 24.3%.
Is Magnolia Oil & Gas' Interest Coverage too high?
Magnolia Oil & Gas' current Interest Coverage of 36.12 is 11% below median its 10-year median of 40.72. Over the past 10 years, this metric has ranged from a low of 4.51 to a high of 16,673.33. The Oil & Gas industry median Interest Coverage is 6.13. Magnolia Oil & Gas' value of 36.12 is 489.7% above this industry median. Based on the distribution chart, Magnolia Oil & Gas ranks #181 out of 744 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Magnolia Oil & Gas has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magnolia Oil & Gas' Interest Coverage compare to MUR and MTDR?
According to the Oil & Gas industry distribution chart, Magnolia Oil & Gas ranks #181 out of 744 companies for Interest Coverage. This places Magnolia Oil & Gas in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.13. Magnolia Oil & Gas' value of 36.12 is 489.7% above this benchmark. Historically, Magnolia Oil & Gas' own Interest Coverage has ranged from 4.51 to 16,673.33 over the past decade. While the company's 10-year median is 40.72 vs. the industry median of 6.13, Magnolia Oil & Gas 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 6.13, based on 744 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. Magnolia Oil & Gas's current Interest Coverage of 36.12 is 489.7% 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 Magnolia Oil & Gas and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnolia Oil & Gas's current Interest Coverage is 36.12, which is 11% below median its own 10-year median of 40.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Oil & Gas stock overvalued right now?
Based on GuruFocus' analysis, Magnolia Oil & Gas (MGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.06, compared to a current price of $26.09 — trading 10.2% below its estimated fair value. The current Interest Coverage is 36.12, which is 11% below median its 10-year median of 40.72 and 489.7% above the Oil & Gas industry median of 6.13. Magnolia Oil & Gas' overall GF Score™ is 93/100 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 Magnolia Oil & Gas (MGY), the current Interest Coverage is 36.12 as of Jun. 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 Magnolia Oil & Gas (MGY) Overvalued in 2026?
Based on GuruFocus' analysis, Magnolia Oil & Gas stock appears to be undervalued.
The current stock price of $26.09 is trading 10.2% below its estimated GF Value™ of $29.06.
GuruFocus considers Magnolia Oil & Gas to be Modestly Undervalued.
Key valuation signals for MGY:
Interest Coverage: 36.12 (11% below median its 10-year median of 40.72)
GF Value™: $29.06 vs. price of $26.09 (10.2% below fair value)
Industry Position: 489.7% above the Oil & Gas median (#181 of 744)
No single metric tells the full story. See the MGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids (NGL) reserves. The company's oil and natural gas properties are located in Karnes County and the Giddings area of South Texas, where it targets the Eagle Ford Shale and Austin Chalk formations. It focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its capital spending philosophy. The company operates in only one segment and derives the majority of its revenue from the sale of crude oil, natural gas, and natural gas liquids (NGLs).
93GF Score
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