Chord Energy Corp (CHRD)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Long-term debt	US$ in thousands	395,902	395,475	395,049	394,626	394,209	393,782	393,354	392,933	392,524	1,041,900	1,044,470	674,238	487,500	2,761,670	2,777,930	2,711,570	2,798,860	2,896,520	2,791,330	2,735,280
Total stockholders’ equity	US$ in thousands	5,076,620	4,941,010	4,819,570	4,758,740	4,679,800	4,470,810	1,198,100	1,441,960	1,032,900	904,442	836,067	864,777	-810,015	-759,124	-670,739	3,636,140	3,705,330	3,676,770	3,624,790	3,734,580
Debt-to-capital ratio		0.07	0.07	0.08	0.08	0.08	0.08	0.25	0.21	0.28	0.54	0.56	0.44	—	1.38	1.32	0.43	0.43	0.44	0.44	0.42

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $395,902K ÷ ($395,902K + $5,076,620K)
= 0.07

The debt-to-capital ratio of Chord Energy Corp has been relatively stable over the past eight quarters, ranging from 0.07 to 0.25. In Q4 2023 and Q3 2023, the ratio remained low at 0.07, indicating that the company's level of debt relative to its total capital remained moderate. This suggests a favorable financial position with a lower risk of financial distress.

However, in Q2 2023 and Q1 2023, the ratio slightly increased to 0.08, signaling a slight uptick in debt relative to capital. While still at manageable levels, this trend should be monitored to ensure that it does not lead to an unsustainable increase in leverage.

The significant spike in the debt-to-capital ratio observed in Q2 2022 to 0.25 indicates a substantial increase in debt relative to capital during that period, which could raise concerns about the company's financial health and potential liquidity issues. It is important to investigate the reasons behind this significant change and evaluate the company's debt management practices.

Overall, the trend of Chord Energy Corp's debt-to-capital ratio suggests a generally stable financial position with manageable levels of debt, but attention should be paid to any deviations from the typical range to ensure long-term financial sustainability.