Civitas Resources Inc (CIVI)

Debt-to-assets 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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	4,785,730	3,699,890	3,048,510	393,693	393,293	392,897	392,508	492,123	491,710	160,000	199,000	0	0	20,000	58,000	59,000	80,000	—	—	65,000
Total assets	US$ in thousands	14,097,300	12,841,600	10,171,000	7,675,050	7,971,400	7,688,800	7,414,430	7,033,750	6,741,030	1,937,080	1,916,180	1,208,290	1,182,810	1,148,780	1,190,230	1,264,070	1,206,320	1,199,740	1,145,340	1,103,390
Debt-to-assets ratio		0.34	0.29	0.30	0.05	0.05	0.05	0.05	0.07	0.07	0.08	0.10	0.00	0.00	0.02	0.05	0.05	0.07	0.00	0.00	0.06

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,785,730K ÷ $14,097,300K
= 0.34

The debt-to-assets ratio for Civitas Resources Inc has shown fluctuation over the past eight quarters, ranging from 0.05 to 0.34. In Q4 2023, the ratio increased to 0.34 from 0.29 in Q3 2023, indicating a higher level of debt relative to assets. This increase could be a result of taking on additional debt or a reduction in asset value during the quarter.

Compared to the stable ratios of 0.05 recorded in Q1, Q2, and Q3 of 2022, the higher ratio in Q4 2023 raises concerns about the company's leverage and financial risk. It suggests that a significant portion of Civitas Resources Inc's assets are financed through debt, which could potentially impact its financial stability and ability to meet debt obligations in the future.

Overall, the trend in the debt-to-assets ratio for Civitas Resources Inc indicates a recent increase in leverage, highlighting the importance of monitoring the company's debt levels and asset management to ensure long-term financial health.