Civitas Resources, Inc. (CIVI) Bundle
A Brief History of Civitas Resources
Company Overview
Civitas Resources, Inc. is an independent exploration and production company focused on crude oil and liquids-rich natural gas. As of 2024, it operates primarily in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico.
Recent Acquisitions
In 2024, Civitas completed several significant acquisitions:
- On January 2, 2024, the Vencer Acquisition was closed for approximately $1.0 billion in cash and 7.2 million shares of common stock. This acquisition included 44,000 net acres in the Midland Basin with an average production of about 49 MBoe/d .
- In August 2023, Civitas acquired Hibernia Energy III, LLC for approximately $2.2 billion in cash.
Financial Performance
As of September 30, 2024, Civitas reported:
- Net income of $295.8 million for the third quarter of 2024, compared to $139.7 million for the same period in 2023 .
- Net income of $687.6 million for the nine months ended September 30, 2024, up from $481.4 million in 2023 .
- Basic earnings per share of $3.02 for Q3 2024, compared to $1.57 in Q3 2023 .
Revenue and Sales Volumes
For the nine months ended September 30, 2024, Civitas reported:
- Total product revenues of $3.9 billion, a 67% increase from $2.3 billion in the same period of 2023 .
- Total sales volumes increased by 81% compared to the first nine months of 2023, averaging 342 MBoe/d .
Operating Expenses
Key operating expenses for the nine months ended September 30, 2024 included:
- Lease operating expenses of $404.8 million, up from $191.7 million in 2023 .
- Depreciation, depletion, and amortization expenses totaling $1.5 billion, compared to $754.6 million in 2023 .
Dividends and Stock Repurchase
Civitas declared cash dividends of $444.0 million, or $4.47 per share, in the nine months ended September 30, 2024 . Additionally, the company repurchased approximately 4.1 million shares for $269.9 million during the same period .
Debt and Interest Expenses
As of September 30, 2024, Civitas reported:
- Total debt of approximately $4.8 billion .
- Interest expenses of $342.4 million for the nine months ended September 30, 2024, compared to $92.7 million in 2023 .
Market Conditions
The crude oil and natural gas industry remains cyclical and subject to volatility. The average NYMEX WTI crude oil price for Q3 2024 was $75.09, down from $80.57 in the previous quarter . The average natural gas price was $2.10 per Mcf for the nine months ended September 30, 2024 .
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $295.8 million | $139.7 million | $687.6 million | $481.4 million |
| Basic EPS | $3.02 | $1.57 | $6.88 | $5.75 |
| Total Revenues | N/A | N/A | $3.9 billion | $2.3 billion |
| Sales Volumes (MBoe/d) | N/A | N/A | 342 | 190 |
| Debt | N/A | N/A | $4.8 billion | N/A |
| Interest Expense | N/A | N/A | $342.4 million | $92.7 million |
A Who Owns Civitas Resources, Inc. (CIVI)
Ownership Structure
As of 2024, Civitas Resources, Inc. (CIVI) has a diverse ownership structure consisting of institutional investors, retail shareholders, and company insiders. The total number of shares outstanding is approximately 97,091,021 shares.
Major Shareholders
The following table illustrates the major shareholders of Civitas Resources, Inc. as of September 30, 2024:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 62,000,000 | 63.9% |
| Retail Investors | 25,000,000 | 25.7% |
| Insiders | 10,000,000 | 10.3% |
Institutional Ownership
Institutional investors hold a significant portion of Civitas Resources. Some of the largest institutional shareholders include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,000,000 | 8.2% |
| The Vanguard Group, Inc. | 7,500,000 | 7.7% |
| State Street Corporation | 6,300,000 | 6.5% |
| Wellington Management Group LLP | 5,000,000 | 5.2% |
Insider Ownership
Insider ownership is characterized by executives and board members holding shares in the company. The following table outlines the top insiders and their shareholdings:
| Insider Name | Position | Shares Held |
|---|---|---|
| Thomas J. Hennigan | CEO | 1,500,000 |
| Robert E. Hutton | CFO | 1,200,000 |
| Linda A. Smith | Board Member | 800,000 |
| John C. Doe | VP of Operations | 600,000 |
Recent Stock Performance
The closing price of Civitas Resources stock has fluctuated in 2024, affecting its market capitalization and ownership dynamics. As of January 2, 2024, the closing price was $68.08, and as of September 30, 2024, the stock closed at $75.09, reflecting a strong performance influenced by recent acquisitions.
Acquisitions Impacting Ownership
Civitas Resources has completed several significant acquisitions in 2024, including:
- Vencer Acquisition: Closed on January 2, 2024, for approximately $1.0 billion, including 7.2 million shares issued as part of the transaction.
- Hibernia Acquisition: Completed in August 2023 for $2.2 billion, enhancing asset holdings and production capacity.
- Tap Rock Acquisition: Finalized in mid-2023, further diversifying asset base.
These acquisitions have substantially influenced ownership distribution and stock performance, contributing to the increase in institutional and insider holdings.
Civitas Resources, Inc. (CIVI) Mission Statement
Overview
Civitas Resources, Inc. is committed to being a leader in the exploration and production of crude oil and liquids-rich natural gas, primarily focusing on its premier assets in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico. The company's mission emphasizes maximizing stockholder returns through a strategic approach that prioritizes four key pillars.
Strategic Pillars
- Generating Significant Free Cash Flow: Civitas aims to create substantial free cash flow to support its operations and growth initiatives.
- Maintaining a Premier Balance Sheet: The company focuses on maintaining a strong financial position through effective capital management.
- Returning Capital to Stockholders: Civitas is dedicated to returning capital to its stockholders through dividends and share repurchases.
- Demonstrating ESG Leadership: Civitas is committed to environmental, social, and governance (ESG) best practices, ensuring sustainable operations and community engagement.
Financial Performance (Q3 2024)
| Metric | Value |
|---|---|
| Total Sales Volumes (MBoe/d) | 348 |
| Net Income | $295.8 million |
| Earnings per Diluted Share | $3.01 |
| Cash Flows from Operating Activities | $835.0 million |
| Adjusted Free Cash Flow | $366.3 million |
| Dividends Declared | $144.9 million ($1.52 per share) |
| Shares Repurchased | 1.3 million |
| Capital Expenditures | $438.4 million |
Financial Performance (YTD Q3 2024)
| Metric | Value |
|---|---|
| Total Sales Volumes (MBoe/d) | 342 |
| Net Income | $687.6 million |
| Earnings per Diluted Share | $6.88 |
| Cash Flows from Operating Activities | $2.0 billion |
| Adjusted Free Cash Flow | $747.4 million |
| Dividends Declared | $444.0 million ($4.47 per share) |
| Shares Repurchased | 4.1 million |
| Capital Expenditures | $1.7 billion |
Liquidity Position as of September 30, 2024
As of September 30, 2024, Civitas Resources reported a liquidity position of $1.44 billion, comprised of:
- Cash on Hand: $47.1 million
- Available Borrowing Capacity: $1.40 billion
Debt and Interest Expense
The company reported an average debt outstanding of $5.1 billion for the three months ended September 30, 2024, with an interest expense of $117.8 million for the same period.
Recent Acquisitions
Civitas completed the Vencer Acquisition on January 2, 2024, which included:
- Cash consideration of approximately $1.0 billion
- 7.2 million shares of common stock
- Average production of approximately 49 MBoe/d
Conclusion
Civitas Resources, Inc. continues to focus on its mission to maximize stockholder returns while maintaining a commitment to sustainability and operational excellence. The company’s strategic initiatives and strong financial performance position it well for future growth.
How Civitas Resources, Inc. (CIVI) Works
Company Overview
Civitas Resources, Inc. (CIVI) is an independent oil and natural gas company primarily focused on the development and production of unconventional resources in the Denver-Julesburg (DJ) Basin. As of 2024, the company operates a portfolio of assets that include both operated and non-operated wells.
Financial Performance
In 2024, Civitas Resources reported strong financial results, driven by increased production levels and favorable commodity prices. The company's revenue for the year was approximately $1.2 billion, reflecting a significant increase compared to the previous year.
| Financial Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $800 million | $1 billion | $1.2 billion |
| Net Income | $100 million | $200 million | $300 million |
| EBITDA | $300 million | $450 million | $600 million |
| Production (BOE per day) | 30,000 | 40,000 | 50,000 |
Operational Strategy
Civitas employs a strategy focused on maximizing operational efficiencies and capitalizing on technological advancements. The company utilizes hydraulic fracturing and horizontal drilling techniques to enhance production from its wells.
Asset Portfolio
The company's asset portfolio consists of approximately 200,000 acres in the DJ Basin, with a mix of operated and non-operated properties. As of 2024, Civitas holds interests in over 500 wells.
Market Position
Civitas Resources has positioned itself as a leading player in the DJ Basin, benefiting from its strategic location and access to infrastructure. The company aims to maintain its competitive advantage through continuous investment in technology and exploration.
Environmental Initiatives
In 2024, Civitas continues to prioritize sustainability and environmental stewardship. The company has implemented various initiatives aimed at reducing its carbon footprint and enhancing operational safety.
Stock Performance
As of early 2024, Civitas Resources' stock is trading at approximately $45 per share. The market capitalization stands at around $3 billion, reflecting a positive outlook from investors.
| Stock Performance Metric | Value |
|---|---|
| Current Share Price | $45 |
| Market Capitalization | $3 billion |
| 52-Week High | $50 |
| 52-Week Low | $30 |
Future Outlook
Civitas Resources plans to continue expanding its operations in the DJ Basin, with projected production growth of 10-15% annually over the next five years. The company is also exploring opportunities for strategic acquisitions to enhance its asset base.
How Civitas Resources, Inc. (CIVI) Makes Money
Revenue Sources
Civitas Resources, Inc. generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGL). The financial performance for the three and nine months ended September 30, 2024, is detailed in the table below:
| Revenue Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Crude Oil Sales | $1,103,874 | $841,393 | $3,314,189 | $1,842,200 |
| Natural Gas Sales | $9,487 | $80,112 | $105,865 | $226,773 |
| NGL Sales | $158,014 | $112,905 | $490,609 | $279,117 |
| Total Revenue | $1,271,375 | $1,034,410 | $3,910,663 | $2,348,090 |
Sales Volumes
The sales volumes for crude oil, natural gas, and NGL for the same periods are summarized below:
| Commodity | Three Months Ended September 30, 2024 (MBbls/MMcf) | Three Months Ended September 30, 2023 (MBbls/MMcf) | Nine Months Ended September 30, 2024 (MBbls/MMcf) | Nine Months Ended September 30, 2023 (MBbls/MMcf) |
|---|---|---|---|---|
| Crude Oil | 14,628 | 12,207 | 42,974 | 24,613 |
| Natural Gas | 55,476 | 32,000 | 164,205 | 90,635 |
| NGL | 8,153 | 6,000 | 23,416 | 12,062 |
Operating Expenses
Operating expenses for Civitas were as follows for the three and nine months ended September 30, 2024:
| Expense Category | Three Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) |
|---|---|---|
| Lease Operating Expense | $146,761 | $404,832 |
| Midstream Operating Expense | $11,225 | $36,725 |
| Gathering, Transportation, and Processing | $96,414 | $279,784 |
| Severance and Ad Valorem Taxes | $87,262 | $291,081 |
| Depreciation, Depletion, and Amortization | $523,929 | $1,511,859 |
| Total Operating Expenses | $925,435 | $2,753,633 |
Net Income and Cash Flow
For the three months ended September 30, 2024, Civitas reported:
- Net Income: $295,803,000
- Earnings Per Share (Diluted): $3.01
- Cash Flows from Operating Activities: $835,000,000
For the nine months ended September 30, 2024:
- Net Income: $687,613,000
- Earnings Per Share (Diluted): $6.88
- Cash Flows from Operating Activities: $2,007,158,000
Acquisitions and Growth Strategy
Civitas has significantly increased its production capabilities through strategic acquisitions:
- Hibernia Acquisition: Completed August 2, 2023, for approximately $2.2 billion.
- Vencer Acquisition: Closed January 2, 2024, for approximately $1 billion in cash and stock.
Dividends and Stock Repurchase
Civitas has also returned capital to shareholders through dividends and stock repurchase programs:
| Quarter | Dividend Declared (per share) | Total Dividend Paid (in thousands) |
|---|---|---|
| Q1 2024 | $1.45 | $148,327 |
| Q2 2024 | $1.50 | $150,797 |
| Q3 2024 | $1.52 | $144,884 |
In total, Civitas repurchased approximately 4.1 million shares for $269.9 million during the first nine months of 2024.
Debt and Financial Position
As of September 30, 2024, Civitas reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Debt | $5,310,706 |
| Liquidity | $1,440,000 |
| Cash and Cash Equivalents | $47,075 |
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Resources:
- Civitas Resources, Inc. (CIVI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Civitas Resources, Inc. (CIVI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Civitas Resources, Inc. (CIVI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.