Civitas Resources Inc (CIVI)

Debt-to-equity 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-equity ratio		0.68	0.77	0.07	0.11	0.00

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,493,530K ÷ $6,628,750K
= 0.68

The debt-to-equity ratio of Civitas Resources Inc has shown fluctuating trends over the years. As of December 31, 2020, the company had no debt as indicated by the ratio of 0.00. Subsequently, the ratio increased to 0.11 by the end of 2021 and decreased to 0.07 by the end of 2022, suggesting a conservative level of debt relative to equity during these periods.

However, there was a significant jump in the ratio to 0.77 by December 31, 2023, indicating a substantial increase in debt levels compared to equity. By the end of 2024, the ratio decreased slightly to 0.68, but it still suggests a relatively high level of debt compared to equity.

It is important for stakeholders to monitor this trend closely, especially the increase in the debt-to-equity ratio in 2023, as it may indicate a higher financial risk for Civitas Resources Inc. Further analysis of the company's financial health and debt management practices would be recommended to understand the implications of these ratios on its overall financial stability and growth prospects.