Civitas Resources Inc (CIVI)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	4,493,530	4,785,730	393,293	491,710	0
Total stockholders’ equity	US$ in thousands	6,628,750	6,181,320	5,373,920	4,655,000	1,045,250
Debt-to-capital ratio		0.40	0.44	0.07	0.10	0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,493,530K ÷ ($4,493,530K + $6,628,750K)
= 0.40

The debt-to-capital ratio of Civitas Resources Inc has exhibited fluctuations over the past five years. Starting at 0.00 on December 31, 2020, the ratio increased to 0.10 by December 31, 2021, indicating a slight rise in the proportion of debt in the company's capital structure. Subsequently, the ratio decreased to 0.07 by December 31, 2022, suggesting a reduction in debt relative to total capital.

However, in the following years, there was a notable increase in the debt-to-capital ratio as it rose sharply to 0.44 by December 31, 2023, and remained relatively high at 0.40 by December 31, 2024. These higher ratios imply a significant increase in the company's reliance on debt financing compared to its total capital structure.

It is important for stakeholders to closely monitor Civitas Resources Inc's debt-to-capital ratio trends, as higher ratios could indicate increased financial risk and potential challenges in meeting debt obligations. The company may need to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.