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.