Civitas Resources Reports Second Quarter 2025 Results and Reinstates Capital Return Program
Board increases share repurchase authorization to
Non-core DJ Basin divestments totaling
Key Highlights
- Second quarter results exceeded expectations, with strong operating performance including higher than expected oil production and lower than expected capital and operating costs.
-
On track with the Company's cost optimization and capital efficiency efforts, targeting
$40 million $100 million
-
Signed agreements to divest non-core DJ Basin assets for
$435 million
-
Reinstating a capital return strategy of allocating
50% of free cash flow, after the base dividend, to share buybacks and50% to debt reduction on an annual basis. The Company's Board increased its share repurchase authorization to$750 million $250 million
Management Quote
Interim CEO Wouter van Kempen commented, “Our second quarter results demonstrate the decisive steps we have taken to strengthen Civitas’ operating performance and financial position. Year-to-date, we’ve improved field-level execution, captured sustainable cost savings, reduced risk through hedging, optimized our capital structure, and accelerated value through non-core divestments, resulting in a stronger and more durable Civitas. With high confidence in our operating plan, including reaching our
Key Second Quarter 2025 Results
|
|
Three Months Ended June 30, 2025 |
|
Six Months Ended June 30, 2025 |
Net Income ($MM) |
|
|
|
|
Adjusted Net Income ($MM)(1) |
|
|
|
|
Operating Cash Flow ($MM) |
|
|
|
|
Adjusted EBITDAX ($MM)(1) |
|
|
|
|
Sales Volumes (MBoe/d) |
|
317 |
|
314 |
Oil Volumes (MBbl/d) |
|
149 |
|
145 |
Capital Expenditures ($MM) |
|
|
|
|
Adjusted Free Cash Flow ($MM)(1) |
|
|
|
|
(1) Non-GAAP financial measure; see attached schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures. |
||||
Second Quarter 2025 Operational Update
- Average daily oil volumes increased six percent from the first quarter, almost entirely from the Permian Basin as a result of new wells commencing production in the first half of the year.
-
Capital expenditures were at the low end of expectations, benefiting from well cost optimization, capital efficiencies, and activity timing adjustments.
-
The Company's current average drilling, completion and facilities cost per lateral foot in the
Delaware , Midland, and DJ Basins are$880 $685 $650
-
The Company's current average drilling, completion and facilities cost per lateral foot in the
-
Permian Basin activity included 27, 31, and 42 net operated wells drilled, completed, and turned to sales, respectively. The Company's average lateral length completed was approximately two miles.
-
Over
50% of the wells drilled and30% of the wells completed were in theDelaware Basin. -
Simul-frac operations in the
Delaware Basin averaged more than 170,000 barrels of water pumped per day on its initial completions. -
Included in the wells turned to sales was the Company's initial operated
Delaware development inLea County, New Mexico . The four wells commenced production in late June with initial production in line with expectations. -
In the Midland Basin, the Company brought online 11 two-mile laterals in
Martin County, Texas , that included co-development in the Middle and Lower Spraberry, Jo Mill, and Wolfcamp A reservoirs, with peak 30-day production averaging 823 barrels per day per well.
-
Over
-
DJ Basin activity for the quarter included 30, 31, and 46 net operated wells drilled, completed, and turned to sales, respectively. The Company's average lateral length completed was 2.3 miles.
- During the second quarter, the Company drilled a multi-well pad of four-mile wells with an average spud-to-total depth of 4.4 days.
-
In the
Watkins area, the Company commenced production on an eight-well development that averaged over four miles drilled and three miles completed, demonstrating Civitas' expertise in long-reach laterals. The wells represent some of the longest laterals inColorado , and peak 30-day oil production averaged 1,100 barrels per day per well, with one of the wells averaging over 1,600 barrels per day.
Second Quarter 2025 Financial Update
-
Crude oil, natural gas, and NGL revenues totaled nearly
$1.1 billion - Realized oil prices for the quarter benefited from the Company's high-quality crude production in both basins and improved commercial terms for long-haul transportation from the DJ Basin.
-
Natural gas realizations reflected continued weak Waha pricing, and natural gas liquid realizations averaged
30% of the West Texas Intermediate ("WTI") oil price for the period.
-
Realized hedging gains for the quarter totaled
$69 million -
During the second quarter, the Company opportunistically added over nine million barrels of oil hedges through the third quarter of 2026. The Company has protected nearly
60% of second half 2025 production with a weighted-average floor of$67 -
Cash operating expenses, including lease operating expense ("LOE"), midstream operating expense, gathering, transportation, and processing, and cash G&A(2), totaled
$10.19 10% reduction from the first quarter of the year.-
Permian Basin LOE per BOE was lower than the first quarter by more than
15% , largely as a result of reduced maintenance and workover activity, lower water disposal, and fuel and power usage.
-
Permian Basin LOE per BOE was lower than the first quarter by more than
-
Financial liquidity at the end of the second quarter 2025 totaled
$2 billion $750 million
(2) Cash operating expenses include LOE, midstream, gathering, transportation and processing, and cash G&A. Cash G&A is a non-GAAP financial measure. See attached schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures. |
Dividend Declared
The Company’s Board of Directors approved a quarterly dividend of
Accelerating Value Through Non-Core Asset Divestments
The Company recently executed two agreements to divest non-core DJ Basin asset packages for a total value of
The two transactions are expected to close around the end of the third quarter 2025, and all proceeds are expected to go to debt reduction. Production is anticipated to be lower by 2 MBoe/d in the third quarter of 2025 and 12 MBoe/d in the fourth quarter, approximately half of which is oil, as a result of the divestments.
Updated 2025 Outlook
Civitas remains on track with its cost optimization and efficiency initiative to deliver sustainable capital reductions and margin improvements. For 2025, the Company estimates the impact from this initiative to be
For the third quarter, Civitas anticipates more than five percent oil volume growth, with both the Permian and DJ Basins showing meaningful increases. Permian Basin production is anticipated to maintain high levels in the fourth quarter while the DJ Basin is reduced primarily as a result of the non-core divestitures.
Third quarter capital expenditures are expected to be lower than the second quarter of the year, reflecting well cost improvements and slight adjustments in the timing of planned activities.
|
|
3Q25 Guidance |
Sales Volumes (MBoe/d)(3) |
|
327 - 338 |
Oil Volumes (MBbl/d)(3) |
|
154 - 160 |
Capital Expenditures ($MM) |
|
|
Cash Operating Expenses ($ per BOE)(4) |
|
|
(3) Third quarter 2025 average sales volumes guidance reflects a 2 MBoe/d (1 MBbl/d) reduction as a result of the non-core asset divestments. |
||
(4) Cash operating expenses include LOE, midstream, gathering, transportation and processing, and cash G&A. Cash G&A is a non-GAAP financial measure. Due to the forward-looking nature of this projection and the unavailability of the specific quantifications of the amounts that would be required to reconcile such projection to the most directly comparable GAAP financial measure, we believe it to be infeasible to provide accurate reconciliations. |
||
Webcast / Conference Call Information
The Company plans to host a webcast and conference call at 6:00 a.m. MT (8:00 a.m. ET) on Thursday, August 7, 2025. The webcast will be available on the Investor Relations section of the Company’s website at www.civitasresources.com. The dial-in number for the call is 888-510-2535, with passcode 4872770.
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 Permian Basin in
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this press release concerning future expectations, beliefs, plans, objectives, financial conditions, returns to shareholders, assumptions, or future events or performance that are not historical facts are “forward-looking” statements based on assumptions currently believed to be valid. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “probable,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “would,” “potential,” “may,” “might,” “anticipate,” “likely,” “plan,” “positioned,” “strategy,” and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. Specific forward-looking statements included in this press release include statements regarding the Company’s plans and expectations with respect to the Company’s capital return program and anticipated ASR program, the timing of the completion of and the allocation of proceeds from the Company’s two non-core DJ Basin asset divestitures, achievement of the Company’s net debt targets, future production, sales volumes, capital expenditures, cash operating expenses, and oil differentials, and the effects of such on the Company’s results of operations, financial position, growth opportunities, reserve estimates and competitive position. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to: future financial condition, results of operations, strategy and plans; declines or volatility in the prices we receive for our crude oil, natural gas, and NGLs; general economic conditions, whether internationally, nationally, or in the regional and local market areas in which we do business, including any future economic downturn, the impact of continued or further inflation, disruption in the financial markets, the imposition of tariffs or trade or other economic sanctions, political instability, and the availability of credit on acceptable terms; the effects of disruption of our operations or excess supply of crude oil and natural gas and other effects of world events, and actions taken by OPEC+ as it pertains to global supply and demand of, and prices for, crude oil, natural gas, and NGLs; political conditions in or affecting other producing countries, including conflicts or hostilities in or relating to the
Additional information concerning other factors that could cause results to differ materially from those described above can be found under Item 1A. “Risk Factors” and “Management’s Discussion and Analysis” sections in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, subsequently filed Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings made with the Securities and Exchange Commission.
All forward-looking statements speak only as of the date they are made and are based on information available at the time they were made. The Company assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
Schedule 1: Condensed Consolidated Statements of Operations |
|||||||||||||||
(in millions, except share and per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Operating net revenues: |
|
|
|
|
|
|
|
||||||||
Crude oil, natural gas, and NGL sales |
$ |
1,054 |
|
|
$ |
1,311 |
|
|
$ |
2,246 |
|
|
$ |
2,639 |
|
Other operating income |
|
3 |
|
|
|
2 |
|
|
|
5 |
|
|
|
3 |
|
Total operating net revenues |
|
1,057 |
|
|
|
1,313 |
|
|
|
2,251 |
|
|
|
2,642 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Lease operating expense |
|
158 |
|
|
|
127 |
|
|
|
332 |
|
|
|
258 |
|
Midstream operating expense |
|
12 |
|
|
|
12 |
|
|
|
26 |
|
|
|
26 |
|
Gathering, transportation, and processing |
|
83 |
|
|
|
94 |
|
|
|
170 |
|
|
|
183 |
|
Severance and ad valorem taxes |
|
75 |
|
|
|
102 |
|
|
|
164 |
|
|
|
204 |
|
Exploration |
|
3 |
|
|
|
2 |
|
|
|
6 |
|
|
|
13 |
|
Depreciation, depletion, and amortization |
|
501 |
|
|
|
521 |
|
|
|
946 |
|
|
|
988 |
|
Transaction costs |
|
— |
|
|
|
8 |
|
|
|
6 |
|
|
|
31 |
|
General and administrative expense |
|
53 |
|
|
|
59 |
|
|
|
110 |
|
|
|
117 |
|
Other operating expense |
|
2 |
|
|
|
1 |
|
|
|
6 |
|
|
|
8 |
|
Total operating expenses |
|
887 |
|
|
|
926 |
|
|
|
1,766 |
|
|
|
1,828 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Derivative gain (loss), net |
|
104 |
|
|
|
8 |
|
|
|
156 |
|
|
|
(102 |
) |
Interest expense |
|
(114 |
) |
|
|
(115 |
) |
|
|
(221 |
) |
|
|
(225 |
) |
Other, net |
|
2 |
|
|
|
3 |
|
|
|
(11 |
) |
|
|
7 |
|
Total other expense |
|
(8 |
) |
|
|
(104 |
) |
|
|
(76 |
) |
|
|
(320 |
) |
Income from operations before income taxes |
|
162 |
|
|
|
283 |
|
|
|
409 |
|
|
|
494 |
|
Income tax expense |
|
(38 |
) |
|
|
(67 |
) |
|
|
(99 |
) |
|
|
(102 |
) |
Net income |
$ |
124 |
|
|
$ |
216 |
|
|
$ |
310 |
|
|
$ |
392 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.34 |
|
|
$ |
2.17 |
|
|
$ |
3.33 |
|
|
$ |
3.92 |
|
Diluted |
$ |
1.34 |
|
|
$ |
2.15 |
|
|
$ |
3.33 |
|
|
$ |
3.88 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
92,588,030 |
|
|
|
99,425,524 |
|
|
|
93,107.102 |
|
|
|
100,061.694 |
|
Diluted |
|
92,670,914 |
|
|
|
100,244,878 |
|
|
|
93,218.041 |
|
|
|
100,864.694 |
|
Schedule 2: Condensed Consolidated Statements of Cash Flows |
|||||||||||||||
(in millions, unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
124 |
|
|
$ |
216 |
|
|
$ |
310 |
|
|
$ |
392 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion, and amortization |
|
501 |
|
|
|
521 |
|
|
|
946 |
|
|
|
988 |
|
Stock-based compensation |
|
13 |
|
|
|
12 |
|
|
|
26 |
|
|
|
23 |
|
Derivative (gain) loss, net |
|
(104 |
) |
|
|
(8 |
) |
|
|
(156 |
) |
|
|
102 |
|
Derivative cash settlement gain (loss), net |
|
69 |
|
|
|
(13 |
) |
|
|
73 |
|
|
|
(24 |
) |
Amortization of deferred financing costs and deferred acquisition consideration |
|
5 |
|
|
|
13 |
|
|
|
9 |
|
|
|
25 |
|
Deferred income tax expense |
|
34 |
|
|
|
63 |
|
|
|
90 |
|
|
|
93 |
|
Other, net |
|
(13 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
— |
|
Changes in operating assets and liabilities, net |
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
(10 |
) |
|
|
80 |
|
|
|
47 |
|
|
|
3 |
|
Prepaid expenses and other |
|
(12 |
) |
|
|
— |
|
|
|
(16 |
) |
|
|
7 |
|
Accounts payable, accrued expenses, and other liabilities |
|
(309 |
) |
|
|
(524 |
) |
|
|
(309 |
) |
|
|
(437 |
) |
Net cash provided by operating activities |
|
298 |
|
|
|
359 |
|
|
|
1,017 |
|
|
|
1,172 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Acquisitions of businesses, net of cash acquired |
|
— |
|
|
|
(34 |
) |
|
|
(756 |
) |
|
|
(868 |
) |
Acquisitions of crude oil and natural gas properties |
|
(3 |
) |
|
|
(14 |
) |
|
|
(20 |
) |
|
|
(14 |
) |
Capital expenditures for drilling and completion activities and other fixed assets |
|
(486 |
) |
|
|
(519 |
) |
|
|
(961 |
) |
|
|
(1,091 |
) |
Proceeds from property transactions |
|
1 |
|
|
|
79 |
|
|
|
3 |
|
|
|
172 |
|
Purchases of carbon credits and renewable energy credits |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
Other, net |
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash used in investing activities |
|
(489 |
) |
|
|
(490 |
) |
|
|
(1,734 |
) |
|
|
(1,803 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from credit facility |
|
450 |
|
|
|
1,000 |
|
|
|
1,550 |
|
|
|
1,300 |
|
Payments to credit facility |
|
(900 |
) |
|
|
(550 |
) |
|
|
(1,400 |
) |
|
|
(1,200 |
) |
Proceeds from issuance of senior notes |
|
743 |
|
|
|
— |
|
|
|
743 |
|
|
|
— |
|
Dividends paid |
|
(47 |
) |
|
|
(149 |
) |
|
|
(97 |
) |
|
|
(297 |
) |
Common stock repurchased and retired |
|
(1 |
) |
|
|
(125 |
) |
|
|
(72 |
) |
|
|
(192 |
) |
Payment of employee tax withholdings in exchange for the return of common stock |
|
— |
|
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(9 |
) |
Other, net |
|
(5 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(6 |
) |
Net cash provided by (used in) financing activities |
|
240 |
|
|
|
171 |
|
|
|
710 |
|
|
|
(404 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
49 |
|
|
|
40 |
|
|
|
(7 |
) |
|
|
(1,035 |
) |
Cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
|
||||||||
Beginning of period |
|
20 |
|
|
|
52 |
|
|
|
76 |
|
|
|
1,127 |
|
End of period |
$ |
69 |
|
|
$ |
92 |
|
|
$ |
69 |
|
|
$ |
92 |
|
Schedule 3: Condensed Consolidated Balance Sheets |
|||||||
(in millions, except share and per share amounts, unaudited) |
|||||||
|
June 30, 2025 |
|
December 31, 2024 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
69 |
|
|
$ |
76 |
|
Accounts receivable, net: |
|
|
|
||||
Crude oil, natural gas, and NGL sales |
|
587 |
|
|
|
646 |
|
Joint interest and other |
|
138 |
|
|
|
125 |
|
Derivative assets |
|
174 |
|
|
|
67 |
|
Prepaid expenses and other |
|
82 |
|
|
|
74 |
|
Total current assets |
|
1,050 |
|
|
|
988 |
|
Property and equipment (successful efforts method): |
|
|
|
||||
Proved properties |
|
18,328 |
|
|
|
16,897 |
|
Less: accumulated depreciation, depletion, and amortization |
|
(5,212 |
) |
|
|
(4,288 |
) |
Total proved properties, net |
|
13,116 |
|
|
|
12,609 |
|
Unproved properties |
|
462 |
|
|
|
631 |
|
Wells in progress |
|
543 |
|
|
|
506 |
|
Other property and equipment, net of accumulated depreciation of |
|
57 |
|
|
|
48 |
|
Total property and equipment, net |
|
14,178 |
|
|
|
13,794 |
|
Derivative assets |
|
12 |
|
|
|
17 |
|
Other noncurrent assets |
|
163 |
|
|
|
145 |
|
Total assets |
$ |
15,403 |
|
|
$ |
14,944 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
622 |
|
|
$ |
561 |
|
Severance and ad valorem taxes payable |
|
283 |
|
|
|
323 |
|
Crude oil, natural gas, and NGL revenue distribution payable |
|
610 |
|
|
|
702 |
|
Derivative liability |
|
39 |
|
|
|
22 |
|
Deferred acquisition consideration |
|
— |
|
|
|
479 |
|
Other liabilities |
|
129 |
|
|
|
118 |
|
Total current liabilities |
|
1,683 |
|
|
|
2,205 |
|
Long-term liabilities: |
|
|
|
||||
Debt, net |
|
5,388 |
|
|
|
4,494 |
|
Ad valorem taxes |
|
129 |
|
|
|
294 |
|
Derivative liability |
|
15 |
|
|
|
13 |
|
Deferred income tax liabilities, net |
|
891 |
|
|
|
801 |
|
Asset retirement obligations |
|
384 |
|
|
|
399 |
|
Other long-term liabilities |
|
119 |
|
|
|
109 |
|
Total liabilities |
|
8,609 |
|
|
|
8,315 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
5,030 |
|
|
|
5,095 |
|
Retained earnings |
|
1,759 |
|
|
|
1,529 |
|
Total stockholders’ equity |
|
6,794 |
|
|
|
6,629 |
|
Total liabilities and stockholders’ equity |
$ |
15,403 |
|
|
$ |
14,944 |
|
Schedule 4: Average Sales Volumes and Prices
The following table presents crude oil, natural gas, and NGL sales volumes by operating region as well as consolidated average sales prices before and after derivatives.
Average sales price, after derivatives is a non-GAAP financial measure that incorporates the net effect of derivative cash receipts from or payments on commodity derivatives that are presented in our accompanying statements of cash flows, netted into the average sales price, before derivatives, the most directly comparable GAAP financial measure. We believe that the presentation of average sales price, after derivatives is a useful means to reflect the actual cash performance of our commodity derivatives for the respective periods and is useful to management and our stockholders in determining the effectiveness of our price risk management program. The following table provides a reconciliation of the GAAP financial measure of average sales price, before derivatives to the non-GAAP financial measure of average sales prices, after derivatives for the periods presented:
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||
|
|
June 30, 2025 |
|
March 31, 2025 |
|
June 30, 2025 |
|
June 30, 2024 |
|||||
Average sales volumes per day(1) |
|
|
|
|
|
|
|
|
|||||
Crude oil (MBbl/d) |
|
|
|
|
|
|
|
|
|||||
Permian Basin |
|
|
83 |
|
|
75 |
|
|
79 |
|
|
85 |
|
DJ Basin |
|
|
66 |
|
|
66 |
|
|
66 |
|
|
70 |
|
Total |
|
|
149 |
|
|
141 |
|
|
145 |
|
|
155 |
|
Natural gas (MMcf/d) |
|
|
|
|
|
|
|
|
|||||
Permian Basin |
|
|
255 |
|
|
273 |
|
|
264 |
|
|
268 |
|
DJ Basin |
|
|
269 |
|
|
288 |
|
|
279 |
|
|
330 |
|
Total |
|
|
524 |
|
|
561 |
|
|
543 |
|
|
598 |
|
Natural gas liquids (MBbl/d) |
|
|
|
|
|
|
|
|
|||||
Permian Basin |
|
|
45 |
|
|
43 |
|
|
44 |
|
|
46 |
|
DJ Basin |
|
|
35 |
|
|
33 |
|
|
34 |
|
|
38 |
|
Total |
|
|
80 |
|
|
76 |
|
|
78 |
|
|
84 |
|
Average sales volumes per day (MBoe/d) |
|
|
|
|
|
|
|
|
|||||
Permian Basin |
|
|
171 |
|
|
164 |
|
|
167 |
|
|
176 |
|
DJ Basin |
|
|
146 |
|
|
147 |
|
|
147 |
|
|
163 |
|
Total |
|
|
317 |
|
|
311 |
|
|
314 |
|
|
339 |
|
|
|
|
|
|
|
|
|
|
|||||
Average sales prices |
|
|
|
|
|
|
|
|
|||||
Crude oil (per Bbl) |
|
$ |
63.87 |
|
$ |
70.90 |
|
$ |
67.27 |
|
$ |
77.98 |
|
Effects of derivatives, net (per Bbl)(2) |
|
|
2.68 |
|
|
0.06 |
|
|
1.41 |
|
|
(1.07 |
) |
Crude oil (after derivatives) (per Bbl) |
|
$ |
66.55 |
|
$ |
70.96 |
|
$ |
68.68 |
|
$ |
76.91 |
|
|
|
|
|
|
|
|
|
|
|||||
Natural gas (per Mcf) |
|
$ |
1.00 |
|
$ |
2.48 |
|
$ |
1.77 |
|
$ |
0.89 |
|
Effects of derivatives, net (per Mcf)(2) |
|
|
0.69 |
|
|
0.08 |
|
|
0.37 |
|
|
0.05 |
|
Natural gas (after derivatives) (per Mcf) |
|
$ |
1.69 |
|
$ |
2.56 |
|
$ |
2.14 |
|
$ |
0.94 |
|
|
|
|
|
|
|
|
|
|
|||||
Natural gas liquids (per Bbl) |
|
$ |
18.99 |
|
$ |
24.07 |
|
$ |
21.46 |
|
$ |
21.79 |
|
Effects of derivatives, net (per Bbl)(2) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Natural gas liquids (after derivatives) (per Bbl) |
|
$ |
18.99 |
|
$ |
24.07 |
|
$ |
21.46 |
|
$ |
21.79 |
|
____________________ |
(1) Items may not recalculate due to rounding. |
(2) Derivatives economically hedge the price we receive for crude oil, natural gas, and NGL. For the three months ended June 30, 2025, the derivative cash settlement gain for crude oil and natural gas was |
Schedule 5: Adjusted Net Income
(in millions, except shares and 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. Adjusted Net Income represents net income after adjusting for (1) the impact of certain non-cash items and/or non-recurring charges 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 |
|
Six Months Ended |
||||||||||||
|
June 30, 2025 |
|
March 31, 2025 |
|
June 30, 2025 |
|
June 30, 2024 |
||||||||
Net income |
$ |
124 |
|
|
$ |
186 |
|
|
$ |
310 |
|
|
$ |
392 |
|
Adjustments to net income: |
|
|
|
|
|
|
|
||||||||
Derivative (gain) loss, net |
|
(104 |
) |
|
|
(52 |
) |
|
|
(156 |
) |
|
|
102 |
|
Derivative cash settlement gain (loss) |
|
69 |
|
|
|
4 |
|
|
|
73 |
|
|
|
(24 |
) |
Transaction costs |
|
— |
|
|
|
6 |
|
|
|
6 |
|
|
|
31 |
|
Other, net(1) |
|
(7 |
) |
|
|
16 |
|
|
|
9 |
|
|
|
1 |
|
Total adjustments to net income before taxes |
|
(42 |
) |
|
|
(26 |
) |
|
|
(68 |
) |
|
|
110 |
|
Tax effect of adjustments |
|
10 |
|
|
|
6 |
|
|
|
16 |
|
|
|
(23 |
) |
Total adjustments to net income after taxes |
|
(32 |
) |
|
|
(20 |
) |
|
|
(52 |
) |
|
|
87 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income |
$ |
92 |
|
|
$ |
166 |
|
|
$ |
258 |
|
|
$ |
479 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income per diluted share |
$ |
0.99 |
|
|
$ |
1.77 |
|
|
$ |
2.77 |
|
|
$ |
4.75 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted-average common shares outstanding |
|
92,670,914 |
|
|
|
93,620,495 |
|
|
|
93,218,041 |
|
|
|
100,864,694 |
|
|
|
|
|
|
|
|
|
||||||||
(1) The three months ended June 30, 2025 includes (i) a |
|||||||||||||||
Schedule 6: Adjusted EBITDAX
(in millions, 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/or 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. 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 |
|
Six Months Ended |
|||||||||||
|
June 30, 2025 |
|
March 31, 2025 |
|
June 30, 2025 |
|
June 30, 2024 |
|||||||
Net Income |
$ |
124 |
|
|
$ |
186 |
|
|
$ |
310 |
|
|
$ |
392 |
Total adjustments to net income before taxes (from schedule 5) |
|
(42 |
) |
|
|
(26 |
) |
|
|
(68 |
) |
|
|
110 |
Interest expense, net(1) |
|
112 |
|
|
|
105 |
|
|
|
217 |
|
|
|
219 |
Income tax expense |
|
38 |
|
|
|
61 |
|
|
|
99 |
|
|
|
102 |
Depreciation, depletion, and amortization |
|
501 |
|
|
|
445 |
|
|
|
946 |
|
|
|
988 |
Exploration |
|
3 |
|
|
|
3 |
|
|
|
6 |
|
|
|
13 |
Stock-based compensation(2) |
|
13 |
|
|
|
12 |
|
|
|
25 |
|
|
|
23 |
Adjusted EBITDAX |
$ |
749 |
|
|
$ |
786 |
|
|
$ |
1,535 |
|
|
$ |
1,847 |
|
|
|
|
|
|
|
|
|||||||
(1) Includes interest income of |
||||||||||||||
(2) Included as a portion of general and administrative expense in the accompanying unaudited condensed consolidated statements of operations. The three and six months ended June 30, 2025 excludes |
||||||||||||||
|
||||||||||||||
Schedule 7: Adjusted Free Cash Flow
(in millions, 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 |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2025 |
|
March 31, 2025 |
|
June 30, 2025 |
|
June 30, 2024 |
||||||||
Net cash provided by operating activities |
|
$ |
298 |
|
|
$ |
719 |
|
|
$ |
1,017 |
|
|
$ |
1,172 |
|
Add back: Changes in operating assets and liabilities, net |
|
|
331 |
|
|
|
(53 |
) |
|
|
278 |
|
|
|
427 |
|
Cash flow from operations before changes in operating assets and liabilities |
|
|
629 |
|
|
|
666 |
|
|
|
1,295 |
|
|
|
1,599 |
|
Less: Cash paid for capital expenditures for drilling and completion activities and other fixed assets |
|
|
(486 |
) |
|
|
(475 |
) |
|
|
(961 |
) |
|
|
(1,091 |
) |
Less: Changes in working capital related to capital expenditures |
|
|
(20 |
) |
|
|
(20 |
) |
|
|
(40 |
) |
|
|
(125 |
) |
Capital expenditures |
|
|
(506 |
) |
|
|
(495 |
) |
|
|
(1,001 |
) |
|
|
(1,216 |
) |
Less: Purchases of carbon credits and renewable energy credits |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Adjusted Free Cash Flow |
|
$ |
123 |
|
|
$ |
171 |
|
|
$ |
294 |
|
|
$ |
381 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures by operating region |
|
|
|
|
|
|
|
|
||||||||
Permian Basin |
|
$ |
271 |
|
|
$ |
271 |
|
|
$ |
542 |
|
|
$ |
689 |
|
DJ Basin |
|
|
226 |
|
|
|
223 |
|
|
|
449 |
|
|
|
527 |
|
Other/Corporate |
|
|
9 |
|
|
|
1 |
|
|
|
10 |
|
|
|
— |
|
Total |
|
$ |
506 |
|
|
$ |
495 |
|
|
$ |
1,001 |
|
|
$ |
1,216 |
|
Schedule 8: Cash General and Administrative
(in millions, unaudited)
Cash general and administrative is a supplemental non-GAAP financial measure that excludes stock-based compensation, that we believe affects the comparability of operating results as it is non-cash. Cash general and administrative is a non-GAAP financial measure that we include in our total cash operating expense per BOE. We believe it provides useful additional information to investors and analysts, as a performance measure, for analysis of our operations.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expense to the non-GAAP financial measure of cash general and administrative:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2025 |
|
March 31, 2025 |
|
June 30, 2025 |
|
June 30, 2024 |
||||||||
General and administrative expense |
|
$ |
53 |
|
|
$ |
57 |
|
|
$ |
110 |
|
|
$ |
117 |
|
Stock-based compensation |
|
|
(13 |
) |
|
|
(13 |
) |
|
|
(26 |
) |
|
|
(23 |
) |
Cash general and administrative |
|
$ |
40 |
|
|
$ |
44 |
|
|
$ |
84 |
|
|
$ |
94 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806245184/en/
For further information, please contact:
Investor Relations:
Brad Whitmarsh, 832.736.8909, bwhitmarsh@civiresources.com
Media:
Rich
Source: Civitas Resources, Inc.
