Magnolia Oil & Gas Corp (MGY)

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	392,839	392,209	391,590	390,982	390,383	389,794	389,216	388,647	388,087	387,537	386,996	391,448	391,115	390,787	390,464	390,147	389,835	389,528	389,225	388,928
Total stockholders’ equity	US$ in thousands	1,691,650	1,664,150	1,634,470	1,599,340	1,576,030	1,271,010	1,098,250	897,564	816,733	694,612	623,532	609,789	548,136	532,608	527,019	543,166	1,776,020	1,769,750	1,739,560	1,685,190
Debt-to-capital ratio		0.19	0.19	0.19	0.20	0.20	0.23	0.26	0.30	0.32	0.36	0.38	0.39	0.42	0.42	0.43	0.42	0.18	0.18	0.18	0.19

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $392,839K ÷ ($392,839K + $1,691,650K)
= 0.19

The debt-to-capital ratio of Magnolia Oil & Gas Corp has shown a generally increasing trend over the past five years, starting at 0.18 at the end of 2019 and reaching 0.42 by the end of 2021. However, from the end of 2021 to the present, the ratio has fluctuated between 0.19 and 0.20, indicating some stabilization.

A debt-to-capital ratio of 0.19 to 0.20 suggests that the company relies on debt for about 19% to 20% of its total capital, with the rest financed through equity. This indicates a moderate level of leverage, which could be considered manageable depending on industry norms and the company's specific circumstances.

It is worth noting that a higher debt-to-capital ratio could indicate increased financial risk due to higher interest expenses and potential difficulties in meeting debt obligations. Monitoring trends in this ratio over time can provide insights into the company's capital structure and financial health.