Civitas Resources Inc (CIVI)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	4,493,530	4,841,520	4,889,550	4,437,620	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
Total stockholders’ equity	US$ in thousands	6,628,750	6,668,480	6,586,020	6,634,930	6,181,320	6,020,630	5,046,690	5,101,750	5,373,920	5,253,520	4,992,550	4,637,530	4,655,000	1,417,250	1,385,110	1,046,760	1,045,250	982,952	978,038	1,016,420
Debt-to-capital ratio		0.40	0.42	0.43	0.40	0.44	0.38	0.38	0.07	0.07	0.07	0.07	0.10	0.10	0.10	0.13	0.00	0.00	0.02	0.06	0.05

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 shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at a relatively low level of 0.05 in March 2020 and gradually increased to 0.44 by December 2023. This upward trend indicates a rising reliance on debt to finance the company's operations and investments relative to its capital structure.

However, a slight decrease in the ratio was observed in the following quarters, hovering around the range of 0.40 to 0.42 from March 2024 to September 2024. This stabilization suggests a potential effort to manage debt levels or a shift in capital structure priorities during this period.

The significant spike in the debt-to-capital ratio to 0.43 in June 2024 followed by a further increase to 0.42 in September 2024 indicates a potential increase in debt relative to capital, which may raise concerns about the company's financial leverage and risk profile.

Overall, it is essential for Civitas Resources Inc to carefully monitor its debt levels relative to capital in order to maintain a healthy balance between debt and equity financing and ensure sustainable financial performance and stability.