Tullow OilXGHA:TLW 43 Interest Coverage is 0.46 as of Dec. 2025, which is 78% below its 10-year median of 2.12. GuruFocus rates XGHA:TLW with a GF Score™ of 43/100 and a GF Value™ of GHS14.01 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 731 Oil & Gas companies, Tullow Oil ranks worse than 94.66% 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. Tullow Oil's
Operating Income
for the
six
months ended in Dec. 2025 was GHS767 Mil. Tullow Oil's Interest Expense for the
six
months ended in Dec. 2025 was GHS-1,665 Mil.
Tullow Oil's interest coverage for the quarter that ended in Dec. 2025 was 0.46.
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. Tullow Oil PLCs 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 Tullow Oil's Interest Coverage or its related term are showing as below:
XGHA:TLW'
s Interest Coverage Range Over the Past 10 Years
Min: 0.66 Med: 2.12 Max: 3.08
Current: 0.66
XGHA:TLW's Interest Coverage is ranked worse than 94.66% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs XGHA:TLW: 0.66
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 .
Tullow Oil Interest Coverage Related Terms
Tullow Oil Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tullow Oil'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.
XGHA:TLW vs COP, EOG, OXY: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Tullow Oil'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.
Tullow Oil Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Tullow Oil's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tullow Oil'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.
Tullow Oil (XGHA:TLW) has a Interest Coverage of 0.46 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tullow Oil and its competitors. This is 78% below median its historical median of 2.12. Over the past decade, Tullow Oil's Interest Coverage has ranged from 0.66 to 3.08. According to the industry distribution chart, Tullow Oil ranks #692 out of 731 companies in the Oil & Gas industry, placing it in the top 94.7%.
Is Tullow Oil's Interest Coverage too high?
Tullow Oil's current Interest Coverage of 0.46 is 78% below median its 10-year median of 2.12. Over the past 10 years, this metric has ranged from a low of 0.66 to a high of 3.08. The Oil & Gas industry median Interest Coverage is 5.89. Tullow Oil's value of 0.46 is 92.2% below this industry median. Based on the distribution chart, Tullow Oil ranks #692 out of 731 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Tullow Oil has a GF Score™ of 43/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tullow Oil's Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Tullow Oil ranks #692 out of 731 companies for Interest Coverage. This places Tullow Oil in the lower half of its industry. The industry median Interest Coverage is 5.89. Tullow Oil's value of 0.46 is 92.2% below this benchmark. Historically, Tullow Oil's own Interest Coverage has ranged from 0.66 to 3.08 over the past decade. While the company's 10-year median is 2.12 vs. the industry median of 5.89, Tullow Oil 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 731 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. Tullow Oil's current Interest Coverage of 0.46 is 92.2% 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 Tullow Oil 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. Tullow Oil's current Interest Coverage is 0.46, which is 78% below median its own 10-year median of 2.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tullow Oil stock overvalued right now?
Based on GuruFocus' analysis, Tullow Oil (XGHA:TLW) is currently considered Modestly Undervalued. The stock's GF Value™ is GHS14.01, compared to a current price of GHS11.92 — trading 14.9% below its estimated fair value. The current Interest Coverage is 0.46, which is 78% below median its 10-year median of 2.12 and 92.2% below the Oil & Gas industry median of 5.89. Tullow Oil's overall GF Score™ is 43/100 with 5 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 Tullow Oil (XGHA:TLW), the current Interest Coverage is 0.46 as of Dec. 2025. 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 Tullow Oil (XGHA:TLW) Overvalued in 2026?
Based on GuruFocus' analysis, Tullow Oil stock appears to be undervalued.
The current stock price of GHS11.92 is trading 14.9% below its estimated GF Value™ of GHS14.01.
GuruFocus considers Tullow Oil to be Modestly Undervalued.
Key valuation signals for XGHA:TLW:
Interest Coverage: 0.46 (78% below median its 10-year median of 2.12)
GF Value™: GHS14.01 vs. price of GHS11.92 (14.9% below fair value)
Industry Position: 92.2% below the Oil & Gas median (#692 of 731)
No single metric tells the full story. See the XGHA:TLW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tullow Oil PLC is an independent oil and gas exploration and production company. The company conducts exploration, appraisal, and development activities in the African and Atlantic regions. The majority of revenue is derived from West African assets, with a focus on offshore fields. Assets used in oil and gas production are acquired through licenses. The company generates revenue from natural gas and crude oil sales. Its reportable segments are: Ghana, which generates key revenue, and the other segment.
43GF Score
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