Northern Oil & Gas Inc (NOG)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,835,550	1,525,410	803,437	879,843	1,118,160
Total stockholders’ equity	US$ in thousands	2,047,680	745,260	215,135	-223,304	558,643
Debt-to-capital ratio		0.47	0.67	0.79	1.34	0.67

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,835,550K ÷ ($1,835,550K + $2,047,680K)
= 0.47

The debt-to-capital ratio of Northern Oil and Gas Inc. has demonstrated fluctuations over the past five years. In 2023, the ratio declined to 0.47 from 0.67 in 2022. This decrease indicates a lower proportion of debt in the company's capital structure relative to total capital. The reduction in the debt-to-capital ratio could suggest that Northern Oil and Gas Inc. has either decreased its debt levels or increased its equity capital during the year.

Comparing to the ratios in 2021 and 2020, where the ratios were 0.79 and 1.31 respectively, the significant decrease in 2023 indicates a positive trend towards a healthier capital structure with less reliance on debt funding. However, the ratio in 2023 is also lower than the ratio in 2019 when it was at 0.67. This suggests that although there has been an improvement from the peak in 2020, the company's debt levels are still higher than they were in 2019.

Overall, the trend of decreasing debt-to-capital ratio from 2020 to 2023 indicates progress towards a more balanced capital structure for Northern Oil and Gas Inc., with potentially lower financial risk associated with debt. It is noteworthy that monitoring further trends in this ratio will be essential to assess the company's ongoing capital management strategy and financial health.