Civitas Resources, Inc. Reports Third Quarter 2024 Results

In This Article:

Return of capital to shareholders and debt reduction benefiting from 2H24 production and free cash flow increase

DENVER, November 07, 2024--(BUSINESS WIRE)--Civitas Resources, Inc. (NYSE: CIVI) (the "Company" or "Civitas") today reported its third quarter 2024 financial and operating results. A webcast and conference call is planned for 7 a.m. MT (9 a.m. ET) on Friday, November 8, 2024. Participation details are available in this release, and supplemental earnings materials can be accessed on the Company's website, www.civitasresources.com.

Key Third Quarter 2024 Results

 

 

Three Months Ended September 30, 2024

 

Nine Months Ended September 30, 2024

Net Income ($MM)

 

$295.8

 

$687.6

Adjusted Net Income ($MM)(1)

 

$195.8

 

$670.5

Operating Cash Flow ($MM)

 

$835.0

 

$2,007.2

Adjusted EBITDAX ($MM)(1)

 

$910.1

 

$2,756.4

Sales Volumes (MBoe/d)

 

348.1

 

342.2

Oil Volumes (MBbl/d)

 

159.0

 

156.8

Capital Expenditures ($MM)

 

$438.4

 

$1,654.4

Adjusted Free Cash Flow ($MM)(1)

 

$366.3

 

$747.4

(1) Non-GAAP financial measure; see attached schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures.

Additional Highlights

  • Return of capital totaled $227 million, including $149 million in dividends (second quarter dividend paid in September) and $78 million in share repurchases. Rather than declaring a third quarter variable dividend, the Company has allocated 100% of its third quarter variable return of capital to share repurchases.

  • Reduced total debt (inclusive of deferred Vencer acquisition payment) with cash payments of $88 million. Financial liquidity at the end of the third quarter totaled more than $1.4 billion, comprised of cash on hand and available borrowing capacity under the Company's credit facility.

  • Fourth quarter oil volumes are anticipated to increase 3% from the third quarter, with October 2024 oil production averaging 165 MBbl/d.

  • Average two-mile Midland Basin Wolfcamp A/B well costs (drilling, completion and equipment) have been reduced to $740 per lateral foot, a 13% decrease from the beginning of the year.

  • Commenced production on 16 Wolfcamp D wells in the Midland Basin year-to-date, with higher than anticipated productivity. These results expand the economic competitiveness of the Wolfcamp D across Civitas' acreage position.

  • Year-to-date, the Company has added more than 75 gross locations in the Delaware and Midland Basins through multiple "ground game" transactions. In addition, via several land trades and acreage swaps, Civitas has significantly extended lateral footage on near-term core developments in the Permian Basin.

  • Four-mile laterals in the DJ Basin are performing above expectation, with the Blue 4AH well producing a state-record 165 thousand barrels of oil in its initial 90 days.

  • Received approval by Colorado’s Energy and Carbon Management Commission of the Lowry Ranch Comprehensive Area Plan within the Watkins development area of the DJ Basin.

Waiting for permission
Allow microphone access to enable voice search

Try again.