Northern Oil & Gas Inc (NOG)

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	1,835,550	2,057,360	1,672,550	1,756,950	1,525,410	1,169,220	1,102,210	1,119,500	803,437	858,415	801,998	817,061	879,843	918,327	924,171	975,282	1,118,160	1,140,070	857,198	839,229
Total stockholders’ equity	US$ in thousands	2,047,680	1,407,790	1,415,800	1,048,070	745,260	709,097	152,650	-35,302	215,135	-157,710	-168,217	-180,682	-223,304	-83,731	140,729	1,009,010	558,643	514,114	389,649	312,760
Debt-to-capital ratio		0.47	0.59	0.54	0.63	0.67	0.62	0.88	1.03	0.79	1.23	1.27	1.28	1.34	1.10	0.87	0.49	0.67	0.69	0.69	0.73

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 fluctuated over the past eight quarters. In Q1 2022, the ratio was at its highest level of 1.03, indicating a significant portion of the company's capital structure was funded by debt. Subsequently, the ratio decreased in Q2 and Q3 2022, but rose again in Q4 2022 to 0.67.

Throughout 2023, the ratio continued to fluctuate, with Q1 showing a ratio of 0.63, Q2 at 0.54, Q3 at 0.59, and Q4 at 0.47. The downward trend in the debt-to-capital ratio in 2023 may suggest that Northern Oil and Gas Inc. has been reducing its reliance on debt financing relative to its total capital.

Overall, a decreasing trend in the debt-to-capital ratio can indicate improving financial strength and stability, as the company relies less on debt to fund its operations and growth. However, it is essential to assess the absolute levels of debt and capital to get a comprehensive understanding of the company's overall financial health.