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.