Civitas Resources, Inc. (NYSE: CIVI) (the "Company" or
"Civitas") today reported its fourth quarter and full year 2024
financial and operating results. A webcast and conference call to
review these results and the Company’s 2025 outlook is planned for
6:30 a.m. MT (8:30 a.m. ET), on Tuesday, February 25, 2025.
Participation details are available in this release, and
supplemental materials can be accessed on the Company's website,
www.civitasresources.com.
Key Fourth Quarter and Full Year 2024 Results
Three Months Ended December
31, 2024
Twelve Months Ended
December 31, 2024
Net Income ($MM)
$151
$839
Adjusted Net Income ($MM)(1)
$171
$842
Operating Cash Flow ($MM)
$858
$2,865
Adjusted EBITDAX ($MM)(1)
$895
$3,652
Sales Volumes (MBoe/d)
352
345
Oil Volumes (MBbl/d)
164
159
Capital Expenditures ($MM)
$278
$1,933
Adjusted Free Cash Flow ($MM)(1)
$519
$1,266
(1) Non-GAAP financial measure; see
attached reconciliation schedules at the end of this release for
reconciliations to the most directly comparable GAAP financial
measures.
Management Quote
“The Civitas team performed well in 2024, establishing a
successful operational track record in our first full year of
operating in the Permian Basin and building on our strong momentum
in the DJ Basin. Our high-quality assets and strong execution
delivered in-line to better-than-expected sales volumes, capital
expenditures, and operating costs. Along with enhancing our
portfolio returns through sustainable capital efficiency gains and
improved cycle times, we also expanded our asset base with
attractive inventory adds in our core areas. All of these actions
strengthened our business and our long-term free cash flow
outlook,” said President and CEO Chris Doyle.
Fourth Quarter 2024 Financial and Operating Results
Total sales and oil volumes increased 1% and 3% sequentially to
352 MBoe/d and 164 MBbl/d, respectively. Sales volumes in the
fourth quarter were split 50% Permian Basin and 50% DJ Basin, as
the DJ Basin grew significantly following a high number of third
quarter turn-in-lines. Supported by strong sales volumes and
commodity price realizations, higher than expected revenues offset
higher cash operating costs, primarily occurring in the Permian
Basin, as a result of winterization efforts and increased workover
and maintenance activities.
Capital expenditures of $278 million were consistent with plan
and reflected continued efficiency gains, as the Company drilled,
completed, and turned to sales 21, 34, and 4 net operated wells,
respectively, in the Permian Basin, and 9, 3, and 28 net operated
wells, respectively, in the DJ Basin. The Company's average lateral
length completed in the quarter was approximately 2.2 miles and 3.0
miles for the Permian Basin and DJ Basin, respectively.
Long-term debt was reduced by $350 million in the fourth
quarter, while the Company also returned $205 million to its
shareholders, including $48 million in dividends and $157 million
in share repurchases. The Company repurchased nearly 3.5% of its
outstanding shares in the fourth quarter.
2024 Financial Highlights
- Generated adjusted free cash flow(1) of nearly $1.3 billion,
representing a yield of 29% (based on year-end 2024 market
capitalization)
- Delivered capital expenditures in the lower half of the
Company's original guidance, with total sales volumes approximately
5% above original guidance and oil volumes at the midpoint,
adjusted for non-core DJ Basin divestments
- Cash operating costs, including lease operating, midstream,
gathering, transportation, and processing, and cash G&A were
below the midpoint of original guidance
- Returned more than $920 million to shareholders throughout the
year, including $494 million in dividends and $427 million of share
repurchases
- Repurchased 7.3 million outstanding shares (approximately 7% of
shares outstanding)
- Increased the Company’s revolving credit facility borrowing
base by $400 million (to $3.4 billion) and its elected commitment
by $350 million (to $2.2 billion)
- Received an upgrade on the Company's long-term issuer rating
from Fitch Ratings to BB+, along with an upgrade from S&P
Global to a positive outlook
(1) Non-GAAP financial measure; see
attached reconciliation schedules at the end of this release for
reconciliations to the most directly comparable GAAP financial
measures.
2024 Operational Highlights
- Established operational track record in the Permian Basin,
delivering sustainably lower well costs through well design
changes, accelerated drilling and completion cycle times, and scale
benefits
- Midland Basin average two-mile well costs (drilling, completion
and equipment) decreased from $850 per lateral foot to less than
$725 per foot by the end of the year, a more than 15%
improvement
- Implemented simulfrac operations late in 2024, increasing fluid
throughput by more than 40% (barrels pumped per day)
- Achieved Permian Basin total recordable incident rate of 0.18
in the first year of operatorship
- Delineated Wolfcamp D development in the Midland Basin, with
higher than anticipated productivity and lower costs, expanding the
economic competitiveness of the Wolfcamp D across Civitas' acreage
position
- Successfully executed 13 four-mile laterals in the DJ Basin,
the longest laterals ever drilled and completed in Colorado,
representing the highest 180-day cumulative oil producing wells in
the state and observing no per foot degradation in
productivity
- Drilled, completed, and commenced production on the Company's
first "U-turn" wells in the Company's northeast extension area of
the DJ Basin, outperforming expected capital cost, cycle times, and
production
- Reported 2024 proved reserves of 798 million barrels of oil
equivalent, a 14% increase from year-end 2023, primarily driven by
the acquisition of Vencer Energy
2024 Strategic Highlights
- Closed on the acquisition of certain oil and gas assets in the
Midland Basin from Vencer Energy at the start of the year,
materially expanding the Company’s Permian Basin position
- Extended the Company's future development inventory through
multiple land transactions and optimized development plans, adding
approximately 100 gross locations in the Permian Basin and 250
gross locations in the DJ Basin
- Divested non-core DJ Basin assets for $215 million, which
included 7 MBoe/d of production (~40% oil) and long-dated future
development inventory in the Company's northeast extension
area
- Reduced regulatory risk in the DJ Basin through a multi-party
regulatory agreement with the governor, industry colleagues, and
environmental groups that defers future ballot measure and
legislative initiatives through at least the end of 2027 (Senate
Bill 24-229 and 24-230)
- Received approval from Colorado’s Energy and Carbon Management
Commission of the Lowry Ranch Comprehensive Area Plan within the
Watkins development area of the DJ Basin
Webcast / Conference Call Information
The Company plans to host a webcast and conference call at 6:30
a.m. MT (8:30 a.m. ET) on February 25, 2025. The dial-in number for
the call is 888-510-2535, with passcode 4872770. A live webcast and
replay of this event will be available on the Investor Relations
section of the Company’s website at www.civitasresources.com.
About Civitas Resources, Inc.
Civitas Resources, Inc. is an independent exploration and
production company focused on the acquisition, development and
production of crude oil and liquids-rich natural gas from its
premier assets in the DJ Basin in Colorado and the Permian Basin in
Texas and New Mexico. Civitas’ proven business model to maximize
shareholder returns is focused on four key strategic pillars:
generating significant free cash flow, maintaining a premier
balance sheet, returning capital to shareholders, and demonstrating
ESG leadership. For more information about Civitas, please visit
www.civitasresources.com.
Schedule 1:
Consolidated Statements of Operations
(in thousands, except for per share
amounts, unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Operating net revenues:
Crude oil, natural gas, and NGL sales
$
1,291,745
$
1,125,730
$
5,202,408
$
3,473,821
Other operating income
1,121
1,045
4,400
5,419
Total operating net revenues
1,292,866
1,126,775
5,206,808
3,479,240
Operating expenses:
Lease operating expense
173,005
109,560
577,837
301,288
Midstream operating expense
11,313
10,039
48,038
45,080
Gathering, transportation, and
processing
97,894
80,880
377,678
290,645
Severance and ad valorem taxes
86,307
88,293
377,388
276,535
Exploration
587
632
14,322
2,178
Depreciation, depletion, and
amortization
544,568
416,634
2,056,427
1,171,192
Transaction costs
682
24,251
31,419
84,328
General and administrative expense
53,223
54,524
226,965
161,077
Other operating expense
6,192
2,182
17,330
7,437
Total operating expenses
973,771
786,995
3,727,404
2,339,760
Other income (expense):
Derivative gain (loss), net
(11,437
)
129,881
37,490
9,307
Interest expense
(113,860
)
(90,071
)
(456,303
)
(182,740
)
Loss on property transactions, net
(1,136
)
—
(2,566
)
(254
)
Other income (expense)
7,099
(695
)
24,670
33,661
Total other income (expense)
(119,334
)
39,115
(396,709
)
(140,026
)
Income from operations before income
taxes
199,761
378,895
1,082,695
999,454
Income tax expense
(48,651
)
(76,028
)
(243,972
)
(215,166
)
Net income
$
151,110
$
302,867
$
838,723
$
784,288
Earnings per common share
Basic
$
1.57
$
3.23
$
8.48
$
9.09
Diluted
$
1.57
$
3.20
$
8.46
$
9.02
Weighted-average common shares
outstanding:
Basic
96,254
93,774
98,865
86,240
Diluted
96,394
94,519
99,176
86,988
Schedule 2:
Consolidated Statement of Cash Flows
(in thousands, unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Cash flows from operating activities:
Net income
$
151,109
$
302,867
$
838,723
$
784,288
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and
amortization
544,568
416,634
2,056,427
1,171,192
Stock-based compensation
12,150
9,354
48,272
34,931
Derivative (gain) loss, net
11,437
(129,881
)
(37,490
)
(9,307
)
Derivative cash settlement gain (loss),
net
12,147
(23,339
)
6,435
(68,246
)
Amortization of deferred financing costs
and deferred acquisition consideration
13,775
3,587
52,702
9,293
Loss on property transactions, net
1,136
—
2,566
254
Deferred income tax expense
48,378
106,191
235,773
245,163
Other, net
4,084
(330
)
1,084
(740
)
Changes in operating assets and
liabilities, net
Accounts receivable, net
(58,057
)
760
(23,036
)
(39,869
)
Prepaid expenses and other
(12,856
)
19,141
(17,644
)
19,987
Accounts payable, accrued expenses, and
other liabilities
130,199
138,204
(298,584
)
91,814
Net cash provided by operating
activities
858,070
843,188
2,865,228
2,238,760
Cash flows from investing activities:
Acquisitions of businesses, net of cash
acquired
—
(5,121
)
(905,096
)
(3,655,612
)
Acquisitions of crude oil and natural gas
properties
(23,096
)
(93,880
)
(47,440
)
(154,855
)
Deposits for acquisitions
—
(161,250
)
—
(161,250
)
Capital expenditures for drilling and
completion activities and other fixed assets
(292,319
)
(570,269
)
(1,924,426
)
(1,352,388
)
Proceeds from property transactions
45,544
84,692
208,824
90,456
Purchases of carbon credits and renewable
energy credits
(1,826
)
(287
)
(5,744
)
(6,151
)
Other, net
—
(177
)
2,000
(3,355
)
Net cash used in investing activities
(271,697
)
(746,292
)
(2,671,882
)
(5,243,155
)
Cash flows from financing activities:
Proceeds from credit facility
250,000
1,000,000
1,900,000
2,120,000
Payments to credit facility
(600,000
)
(900,000
)
(2,200,000
)
(1,370,000
)
Proceeds from issuance of senior notes
—
987,500
—
3,653,750
Payment of deferred financing costs and
other
(1,215
)
(2,879
)
(7,724
)
(45,788
)
Dividends paid
(47,629
)
(149,289
)
(493,842
)
(660,320
)
Common stock repurchased and retired
(157,444
)
—
(427,305
)
(320,398
)
Payment of employee tax withholdings in
exchange for the return of common stock
(396
)
(114
)
(12,037
)
(13,416
)
Other, net
(938
)
(727
)
(3,427
)
(752
)
Net cash provided by (used in) financing
activities
(557,622
)
934,491
(1,244,335
)
3,363,076
Net change in cash, cash equivalents, and
restricted cash
28,751
1,031,387
(1,050,989
)
358,681
Cash, cash equivalents, and restricted
cash:
Beginning of period (1)
47,075
95,428
1,126,815
768,134
End of period (1)
$
75,826
$
1,126,815
$
75,826
$
1,126,815
(1) The balance includes $0.1 million of
restricted cash consisting of funds for road maintenance and
repairs that is presented in other noncurrent assets within our
balance sheets for all periods presented prior to September 30,
2024. These funds were released to the Company during the third
quarter of 2024. In addition, the December 31, 2023 balance
includes $1.9 million of interest earned on cash held in escrow
that is presented in deposits for acquisitions within our balance
sheets for the period ended December 31, 2023.
Schedule 3:
Consolidated Balance Sheets
(in thousands)
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
75,826
$
1,124,797
Accounts receivable, net:
Crude oil and natural gas sales
646,290
505,961
Joint interest and other
125,047
247,228
Derivative assets
66,517
35,192
Deposits for acquisitions
—
163,164
Prepaid expenses and other
74,638
68,070
Total current assets
988,318
2,144,412
Property and equipment (successful efforts
method):
Proved properties
16,897,070
12,738,568
Less: accumulated depreciation, depletion,
and amortization
(4,287,752
)
(2,339,541
)
Total proved properties, net
12,609,318
10,399,027
Unproved properties
630,727
821,939
Wells in progress
505,556
536,858
Other property and equipment, net of
accumulated depreciation of $9,382 in 2024 and $9,808 in 2023
48,757
62,392
Total property and equipment, net
13,794,358
11,820,216
Derivative assets
17,037
8,233
Other noncurrent assets
144,407
124,458
Total assets
$
14,944,120
$
14,097,319
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
560,893
$
565,708
Production taxes payable
322,976
421,045
Crude oil and natural gas revenue
distribution payable
702,130
766,123
Derivative liability
22,178
18,096
Deferred acquisition consideration
478,749
—
Other liabilities
118,168
80,915
Total current liabilities
2,205,094
1,851,887
Long-term liabilities:
Debt, net
4,493,531
4,785,732
Ad valorem taxes
294,058
307,924
Derivative liability
13,016
—
Deferred income tax liabilities, net
800,554
564,781
Asset retirement obligations
399,002
305,716
Other long-term liabilities
110,119
99,958
Total liabilities
8,315,374
7,915,998
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value,
25,000,000 shares authorized, none outstanding
—
—
Common stock, $.01 par value, 225,000,000
shares authorized, 93,933,857 and 93,774,901 issued and outstanding
as of December 31, 2024 and 2023, respectively
5,006
5,004
Additional paid-in capital
5,095,298
4,964,450
Retained earnings
1,528,442
1,211,867
Total stockholders’ equity
6,628,746
6,181,321
Total liabilities and stockholders’
equity
$
14,944,120
$
14,097,319
Schedule 4: Average Sales Volumes and
Prices (unaudited)
The following table presents crude oil, natural gas, and NGL
sales volumes by operating region as well as consolidated average
sales prices for the periods presented:
Three Months Ended
Twelve Months Ended
December 31, 2024
September 30, 2024
December 31, 2024
December 31, 2023
Average sales volumes per day
Crude oil (MBbl/d)
DJ Basin
84
71
74
79
Permian Basin
80
88
85
21
Total
164
159
159
100
Natural gas (MMcf/d)
DJ Basin
309
311
320
302
Permian Basin
286
292
278
64
Total
595
603
598
366
Natural gas liquids (MBbl/d)
DJ Basin
41
37
38
39
Permian Basin
49
52
48
12
Total
90
89
86
51
Average sales volumes per day (MBoe/d)
DJ Basin
176
159
165
169
Permian Basin
176
189
179
44
Total(1)
352
348
345
213
Average sales prices (before
derivatives):
Crude oil (per Bbl)
$
69.96
$
75.46
$
75.26
$
75.57
Natural gas (per Mcf)
$
1.14
$
0.17
$
0.77
$
2.28
Natural gas liquids (per Bbl)
$
21.47
$
19.38
$
21.09
$
21.35
Total (per Boe)
$
39.90
$
39.70
$
41.24
$
44.86
____________________
(1) Items may not recalculate due to
rounding.
Schedule 5: Adjusted Net Income (in
thousands, except per share amounts, unaudited)
Adjusted Net Income is a supplemental non-GAAP financial measure
that is used by management to present a more comparable, recurring
profitability between periods. We believe that Adjusted Net Income
provides external users of our consolidated financial statements
with additional information to assist in their analysis of the
Company. The Company defines Adjusted Net Income as net income
after adjusting for (1) the impact of certain non-cash items and
one-time transactions and correspondingly (2) the related tax
effect in each period. Adjusted Net Income is not a measure of net
income as determined by GAAP and should not be considered in
isolation or as a substitute for net income, net cash provided by
operating activities, or other profitability or liquidity measures
prepared under GAAP.
The following table presents a reconciliation of the GAAP
financial measure of net income to the non-GAAP financial measure
of Adjusted Net Income.
Three Months Ended
Twelve Months Ended
December 31, 2024
September 30, 2024
December 31, 2024
December 31, 2023
Net income
$
151,110
$
295,803
$
838,723
$
784,288
Adjustments to net income:
Unused commitments(1)
1,232
1,117
1,730
5,013
Transaction costs
682
140
31,419
84,328
Loss on property transactions, net
1,136
—
2,566
254
Derivative (gain) loss, net
11,437
(151,029
)
(37,490
)
(9,307
)
Derivative cash settlement gain (loss),
net
12,147
18,195
6,435
(68,246
)
Total adjustments to net income before
taxes
26,634
(131,577
)
4,660
12,042
Tax effect of adjustments
(6,499
)
31,578
(1,049
)
(2,589
)
Total adjustments to net income after
taxes
20,135
(99,999
)
3,611
9,453
Adjusted Net Income
$
171,245
$
195,804
$
842,334
$
793,741
Adjusted Net Income per diluted share
$
1.78
$
1.99
$
8.49
$
9.12
Diluted weighted-average common shares
outstanding
96,394
98,224
99,176
86,988
1) Included as a portion of other
operating expense in the consolidated statements of operations.
Schedule 6: Adjusted EBITDAX (in
thousands, unaudited)
Adjusted EBITDAX is a supplemental non-GAAP financial measure
that represents earnings before interest, income taxes,
depreciation, depletion, and amortization, exploration expense, and
other non-cash and non-recurring charges. Adjusted EBITDAX excludes
certain items that we believe affect the comparability of operating
results and can exclude items that are generally non-recurring in
nature or whose timing and/or amount cannot be reasonably
estimated. We present Adjusted EBITDAX because we believe it
provides useful additional information to investors and analysts,
as a performance measure, for analysis of our ability to internally
generate funds for exploration, development, acquisitions, and to
service debt. We are also subject to financial covenants under our
revolving credit facility based on Adjusted EBITDAX ratios. In
addition, Adjusted EBITDAX is widely used by professional research
analysts and others in the valuation, comparison, and investment
recommendations of companies in the crude oil and natural gas
exploration and production industry. Adjusted EBITDAX should not be
considered in isolation or as a substitute for net income, net cash
provided by operating activities, or other profitability or
liquidity measures prepared under GAAP. Because Adjusted EBITDAX
excludes some, but not all items that affect net income and may
vary among companies, the Adjusted EBITDAX amounts presented may
not be comparable to similar metrics of other companies.
The following table presents a reconciliation of the GAAP
financial measure of net income to the non-GAAP financial measure
of Adjusted EBITDAX:
Three Months Ended
Twelve Months Ended
December 31, 2024
September 30, 2024
December 31, 2024
December 31, 2023
Net Income
$
151,110
$
295,803
$
838,723
$
784,288
Total adjustments to net income before
taxes (from schedule 4)
26,634
(131,577
)
4,660
12,042
Exploration
587
861
14,322
2,178
Depreciation, depletion, and
amortization
544,568
523,929
2,056,427
1,171,192
Stock-based compensation(1)
12,150
12,661
48,272
34,931
Interest expense
113,860
117,760
456,303
182,740
Interest income(2)
(2,334
)
(2,650
)
(11,058
)
(33,347
)
Income tax expense
48,651
93,309
243,972
215,166
Adjusted EBITDAX
$
895,226
$
910,096
$
3,651,621
$
2,369,190
(1) Included as a portion of general and
administrative expense in the consolidated statements of
operations.
(2) Included as a portion of other income
in the consolidated statements of operations.
Schedule 7: Adjusted Free Cash Flow
(in thousands, unaudited)
Adjusted Free Cash Flow is a supplemental non-GAAP financial
measure that is calculated as net cash provided by operating
activities before changes in operating assets and liabilities and
less exploration and development of crude oil and natural gas
properties, changes in working capital related to capital
expenditures, and purchases of carbon credits. We believe that
Adjusted Free Cash Flow provides additional information that may be
useful to investors and analysts in evaluating our ability to
generate cash from our existing crude oil and natural gas assets to
fund future exploration and development activities and to return
cash to stockholders. Adjusted Free Cash Flow is a supplemental
measure of liquidity and should not be viewed as a substitute for
cash flows from operations because it excludes certain required
cash expenditures.
The following table presents a reconciliation of the GAAP
financial measure of net cash provided by operating activities to
the non-GAAP financial measure of Adjusted Free Cash Flow:
Three Months Ended
Twelve Months Ended
December 31, 2024
September 30, 2024
December 31, 2024
December 31, 2023
Net cash provided by operating
activities
$
858,070
$
835,038
$
2,865,228
$
2,238,760
Add back: changes in operating assets and
liabilities, net
(59,285
)
(28,270
)
339,264
(71,932
)
Cash flow from operations before changes
in operating assets and liabilities
798,785
806,768
3,204,492
2,166,828
Less: Cash paid for capital expenditures
for drilling and completion activities and other fixed assets
(292,319
)
(541,410
)
(1,924,426
)
(1,352,388
)
Less: Changes in working capital related
to capital expenditures
14,115
103,021
(8,208
)
(12,349
)
Capital expenditures
(278,204
)
(438,389
)
(1,932,634
)
(1,364,737
)
Less: Purchases of carbon credits and
renewable energy credits
(1,826
)
(2,032
)
(5,744
)
(6,151
)
Adjusted Free Cash Flow
$
518,755
$
366,347
$
1,266,114
$
795,940
Capital expenditures by operating
region
DJ Basin
$
78,223
$
208,530
$
813,750
$
890,962
Permian Basin
199,955
228,910
1,117,686
473,933
Other/Corporate
25
951
1,199
(158
)
Total
$
278,203
$
438,391
$
1,932,635
$
1,364,737
Schedule 8: Estimated Proved
Reserves
A summary of our changes in quantities of total proved reserves
for the year ended December 31, 2024 is as follows:
Proved Reserve Roll-Forward
(in MBoe)
Net Proved Reserves
Balance as of December 31, 2023
697,799
Extensions, discoveries, and other
additions
101,817
Production
(126,135
)
Divestiture of reserves
(22,929
)
Removed from capital program
(24,064
)
Acquisition of reserves
179,348
Revisions to previous estimates
(8,112
)
Balance as of December 31, 2024
797,724
The table below sets forth information regarding our estimated
proved reserves by category and operating region as of December 31,
2024:
Operating Region/Area
Crude Oil (MBbls)
Natural Gas (MMcf)
NGL (MBbls)
Crude Oil Equivalent
(MBoe)
Proved developed reserves:
DJ Basin
103,812
647,550
79,431
291,168
Permian Basin
131,814
676,306
123,751
368,283
Total proved developed reserves
235,626
1,323,856
203,182
659,451
Proved undeveloped reserves:
DJ Basin
34,045
99,276
11,883
62,474
Permian Basin
35,690
116,386
20,711
75,799
Total proved undeveloped reserves
69,735
215,662
32,594
138,273
Proved reserves:
DJ Basin
137,857
746,826
91,314
353,642
Permian Basin
167,504
792,692
144,462
444,082
Total proved reserves(1)
305,361
1,539,518
235,776
797,724
____________________
(1) Items may not recalculate due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224936014/en/
For further information, please contact: Investor
Relations: Brad Whitmarsh, 832.736.8909,
bwhitmarsh@civiresources.com Mae Herrington, 832.913.5444,
mherrington@civiresources.com
Media: Rich Coolidge, info@civiresources.com
Civitas Resources (NYSE:CIVI)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
Civitas Resources (NYSE:CIVI)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
