Gran Tierra Energy (TSX:GTE) Interest Coverage: 2.57 (As of Jun. 2026) — 26% Below Median

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TSX:GTE Gran Tierra Energy Inc TSX:GTE
51 GF Score
Price C$12.77
GF Value C$7.48
Valuation Significantly Overvalued
! 8 Warning Signs
View Full Analysis

What is Gran Tierra Energy Interest Coverage?

Gran Tierra Energy TSX:GTE -3.62% 51 Interest Coverage is 2.57 as of Jun. 2026, which is 26% below its 10-year median of 3.48. GuruFocus rates TSX:GTE with a GF Score™ of 51/100 and a GF Value™ of C$7.48 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 747 Oil & Gas companies, Gran Tierra Energy ranks worse than 98.66% 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. Gran Tierra Energy's Operating Income for the three months ended in Jun. 2026 was C$82.1 Mil. Gran Tierra Energy's Interest Expense for the three months ended in Jun. 2026 was C$-31.9 Mil. Gran Tierra Energy's interest coverage for the quarter that ended in Jun. 2026 was 2.57. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Gran Tierra Energy Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Gran Tierra Energy's Interest Coverage or its related term are showing as below:

TSX:GTE' s Interest Coverage Range Over the Past 10 Years
Min: 0.23   Med: 3.48   Max: 10.04
Current: 0.23


TSX:GTE's Interest Coverage is ranked worse than
98.66% of 747 companies
in the Oil & Gas industry
Industry Median: 6.43 vs TSX:GTE: 0.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Gran Tierra Energy  (TSX:GTE) 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 .


Gran Tierra Energy Interest Coverage Related Terms


Gran Tierra Energy Interest Coverage Historical Data

* Premium members only.

The historical data trend for Gran Tierra 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.

Gran Tierra Energy Interest Coverage Chart

Gran Tierra Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.97 7.39 3.48 1.77 0.00

Gran Tierra Energy Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.26 0.00 0.00 0.00 2.57

TSX:GTE vs INR, PNRG, UNTC: Interest Coverage Comparison

For the Oil & Gas E&P subindustry, Gran Tierra 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.


Gran Tierra Energy Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Gran Tierra Energy's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gran Tierra Energy's Interest Coverage falls into.


TSX:GTE
51GF Score
Gran Tierra Energy Inc TSX:GTE
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Gran Tierra Energy Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Gran Tierra Energy's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Gran Tierra Energy's Interest Expense was C$-116.4 Mil. Its Operating Income was C$-14.9 Mil. And its Long-Term Debt & Capital Lease Obligation was C$947.1 Mil.

Gran Tierra Energy did not have earnings to cover the interest expense.

Gran Tierra Energy's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Gran Tierra Energy's Interest Expense was C$-31.9 Mil. Its Operating Income was C$82.1 Mil. And its Long-Term Debt & Capital Lease Obligation was C$774.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*82.138/-31.929
=2.57

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.57 mean?
Gran Tierra Energy (TSX:GTE) has a Interest Coverage of 2.57 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gran Tierra Energy and its competitors. This is 26% below median its historical median of 3.48. Over the past decade, Gran Tierra Energy's Interest Coverage has ranged from 0.23 to 10.04. According to the industry distribution chart, Gran Tierra Energy ranks #737 out of 747 companies in the Oil & Gas industry, placing it in the top 98.7%.
Is Gran Tierra Energy's Interest Coverage too high?
Gran Tierra Energy's current Interest Coverage of 2.57 is 26% below median its 10-year median of 3.48. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 10.04. The Oil & Gas industry median Interest Coverage is 6.43. Gran Tierra Energy's value of 2.57 is 60% below this industry median. Based on the distribution chart, Gran Tierra Energy ranks #737 out of 747 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Gran Tierra Energy has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gran Tierra Energy's Interest Coverage compare to INR and PNRG?
According to the Oil & Gas industry distribution chart, Gran Tierra Energy ranks #737 out of 747 companies for Interest Coverage. This places Gran Tierra Energy in the lower half of its industry. The industry median Interest Coverage is 6.43. Gran Tierra Energy's value of 2.57 is 60% below this benchmark. Historically, Gran Tierra Energy's own Interest Coverage has ranged from 0.23 to 10.04 over the past decade. While the company's 10-year median is 3.48 vs. the industry median of 6.43, Gran Tierra Energy 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 6.43, based on 747 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. Gran Tierra Energy's current Interest Coverage of 2.57 is 60% 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 Gran Tierra Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gran Tierra Energy's current Interest Coverage is 2.57, which is 26% below median its own 10-year median of 3.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gran Tierra Energy stock overvalued right now?
Based on GuruFocus' analysis, Gran Tierra Energy (TSX:GTE) is currently considered Significantly Overvalued. The stock's GF Value™ is C$7.48, compared to a current price of C$12.77 — trading 70.7% above its estimated fair value. The current Interest Coverage is 2.57, which is 26% below median its 10-year median of 3.48 and 60% below the Oil & Gas industry median of 6.43. Gran Tierra Energy's overall GF Score™ is 51/100 with 8 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 Gran Tierra Energy (TSX:GTE), the current Interest Coverage is 2.57 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 Gran Tierra Energy (TSX:GTE) Overvalued in 2026?

Based on GuruFocus' analysis, Gran Tierra Energy stock appears to be overvalued. The current stock price of C$12.77 is trading 70.7% above its estimated GF Value™ of C$7.48. GuruFocus considers Gran Tierra Energy to be Significantly Overvalued.

Key valuation signals for TSX:GTE:

  • Interest Coverage: 2.57 (26% below median its 10-year median of 3.48)
  • GF Value™: C$7.48 vs. price of C$12.77 (70.7% above fair value)
  • GF Score™: 51/100 with 8 warning signs
  • Industry Position: 60% below the Oil & Gas median (#737 of 747)

No single metric tells the full story. See the TSX:GTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Gran Tierra Energy Business Description

Industry EnergyOil & Gas
Other Exchanges GTE:USAGTE:UKG1P0:Germany
Address 500 Centre Street Southeast, Calgary, AB, CAN, T2G 1A6
Gran Tierra Energy Inc is an independent energy company. The company, along with its subsidiaries, is focused on oil and gas exploration and production, with assets in Colombia, Canada, and Ecuador. It produces oil, natural gas, and natural gas liquids. Gran Tierra has assembled a diversified, high-quality asset base that is fully operated in Colombia and Ecuador and partly in Canada. The company operates various blocks in Colombia and Ecuador, spanning three basins. It also has contiguous areas in Alberta, Canada, spanning various gross acres across the Western Canadian Sedimentary Basin. The company's reportable segments are Colombia, Ecuador, Canada, and Other. The majority of its revenue comes from operations in Colombia.
51GF Score

Get the complete analysis for TSX:GTE

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$12.77
Price
C$7.48
GF Value