Chord Energy Corp (CHRD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Long-term debt	US$ in thousands	395,902	394,209	392,524	2,711,570	2,735,280
Total assets	US$ in thousands	6,926,150	6,631,080	3,026,790	7,499,250	7,626,140
Debt-to-assets ratio		0.06	0.06	0.13	0.36	0.36

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $395,902K ÷ $6,926,150K
= 0.06

The debt-to-assets ratio of Chord Energy Corp has remained relatively stable over the past three years, indicating a conservative financial structure. The ratio was consistent at 0.06 in both 2023 and 2022, signaling that only 6% of the company's assets were financed through debt. However, there was a significant drop from 0.13 in 2021 to the subsequent years, suggesting a reduction in debt levels relative to total assets.

This consistency and the downward trend in the debt-to-assets ratio demonstrates that Chord Energy Corp has been effectively managing its debt obligations and maintaining a healthy balance between debt and assets. A low debt-to-assets ratio generally implies lower financial risk and greater financial stability for the company, as it indicates that a smaller portion of its assets is financed by debt.