Civitas Resources Inc (CIVI)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	4,785,730	393,293	491,710	0	80,000
Total stockholders’ equity	US$ in thousands	6,181,320	5,373,920	4,655,000	1,045,250	936,690
Debt-to-equity ratio		0.77	0.07	0.11	0.00	0.09

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,785,730K ÷ $6,181,320K
= 0.77

The debt-to-equity ratio of Civitas Resources Inc has shown fluctuations over the past five years. In 2023, the ratio stands at 0.77, indicating a higher level of debt relative to equity compared to the previous year. The significant increase from 2022 to 2023 suggests that the company may have taken on more debt in relation to its equity position, which could potentially increase its financial risk.

It is noteworthy that in 2022, the company had a notably low debt-to-equity ratio of 0.07, implying a very conservative capital structure with minimal debt in relation to equity. However, this ratio has since increased, signaling a shift towards a higher reliance on debt financing in 2023.

Overall, the trend in the debt-to-equity ratio of Civitas Resources Inc indicates potential changes in the company's capital structure and financing decisions. Further analysis of the underlying reasons for these fluctuations and their implications for the company's financial health and risk profile would be necessary to draw more definitive conclusions about the company's financial position.