Civitas Resources Inc (CIVI)

Debt-to-equity 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-equity ratio		0.68	0.73	0.74	0.67	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

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 displayed some fluctuations over the reported periods, ranging from a low of 0.00 to a high of 0.77. Generally, a lower debt-to-equity ratio indicates a lower level of financial risk as it signifies that the company relies less on debt financing relative to equity.

In the first half of the data series, from March 2020 to March 2021, the company maintained a very low debt-to-equity ratio of 0.00.
From June 2021 to September 2022, the ratio increased gradually, reaching a peak of 0.14 in June 2021, then decreased to 0.07 by September 2022. This suggests that during this period, the company may have increased its debt relative to equity but then reduced its debt levels.

However, in the latter part of the data series, from June 2023 to December 2024, the debt-to-equity ratio increased significantly, reaching as high as 0.77 by December 2023. This substantial increase in the ratio could indicate a higher level of financial leverage and potentially an increased risk related to debt obligations.

Overall, the debt-to-equity ratio trend for Civitas Resources Inc indicates some volatility in its capital structure over the reported periods, with notable fluctuations and periods of both low and high leverage. Further analysis and consideration of the company's financial strategy and performance would be needed to fully assess the implications of these ratio movements.