Civitas Resources Inc (CIVI)

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	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 stockholders’ equity	US$ in thousands	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	936,690	937,924	900,006	858,147
Debt-to-capital ratio		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	0.08	0.00	0.00	0.07

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,785,730K ÷ ($4,785,730K + $6,181,320K)
= 0.44

Civitas Resources Inc's debt-to-capital ratio has shown fluctuations over the past eight quarters. In Q4 2023, the ratio stood at 0.44, indicating that 44% of the company's capital structure was funded by debt. This represents an increase from the previous quarter's ratio of 0.38, which suggests a higher reliance on debt financing.

Comparing the current ratio to earlier quarters, it is notable that Q1 and Q4 2022 also had a debt-to-capital ratio of 0.07. This suggests a significant increase in debt levels from those earlier periods to the most recent quarter. In Q2 and Q3 2023, the ratio was also 0.38, indicating a consistent level of debt relative to capital during that time.

However, Q1 2023 showed a notably lower ratio of 0.07, indicating a minimal reliance on debt for capital funding in that quarter. The Q1 2023 ratio of 0.10 was slightly higher but still comparatively lower than Q4 2023.

Overall, the varying debt-to-capital ratios over the quarters suggest changes in the company's capital structure and financial strategy. The recent increase in the ratio may indicate a shift towards more debt financing, which could impact the company's financial risk and leverage going forward. Monitoring this trend will be crucial to assess the stability and efficiency of Civitas Resources Inc's capital structure.