Civitas Resources Inc (CIVI)

Debt-to-equity 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-equity ratio		0.77	0.61	0.60	0.08	0.07	0.07	0.08	0.11	0.11	0.11	0.14	0.00	0.00	0.02	0.06	0.06	0.09	0.00	0.00	0.08

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 varied over the periods presented. In Q4 2023, the ratio stood at 0.77, indicating that the company had more debt relative to equity. This was higher compared to the previous quarter where the ratio was 0.61. The trend over the past few quarters has shown an increasing reliance on debt as a source of financing.

In comparison to Q1-Q3 2023, the debt-to-equity ratio in Q4 2023 showed a significant increase, signaling a potential increase in financial leverage and higher risk for the company. However, it is noteworthy that the ratio had been relatively low in the earlier quarters of 2022, ranging between 0.07 and 0.11, which may indicate a more conservative financial structure during that period.

Overall, the recent uptrend in the debt-to-equity ratio of Civitas Resources Inc suggests a shift towards a more leveraged position, which could lead to increased financial risk and interest payment obligations. It would be essential for stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively.