On May 2, 2024, Civitas Resources Inc (CIVI, Financial) unveiled its financial and operational results for the first quarter of 2024, highlighting significant achievements and strategic advancements. The company released its 8-K filing which details these results, alongside plans for a webcast and conference call to discuss the outcomes further.
Company Overview
Civitas Resources Inc is an independent exploration and production company primarily engaged in the acquisition, development, and production of oil and associated liquids-rich natural gas in the Rocky Mountain region, particularly in the Denver-Julesburg Basin of Colorado. The company focuses on developing the horizontal Niobrara and Codell formations, known for their low-cost structure and mature infrastructure.
First Quarter 2024 Performance Highlights
The first quarter of 2024 was marked by a net income of $175.8 million and an adjusted net income of $277.1 million. Civitas generated a robust operating cash flow of $812.6 million and reported an Adjusted EBITDAX of $928.2 million. Total sales volumes reached 335.5 MBoe/d, with oil volumes comprising 156.2 MBbl/d. The company's capital expenditures for the quarter were $649.5 million, and it achieved an adjusted free cash flow of $145.6 million.
Significant operational efficiencies were realized in the Permian Basin, where Civitas drilled and completed more wells than planned. This achievement underscores the company's enhanced operational capabilities and strategic focus on the Permian region following its acquisition of assets from Vencer Energy.
Strategic Divestments and Financial Position
Civitas successfully executed divestments of non-core DJ Basin assets, surpassing its target with proceeds exceeding $300 million. These strategic sales are part of Civitas' broader plan to optimize its asset portfolio and strengthen its balance sheet. The proceeds from these divestments are earmarked for enhancing shareholder returns and further solidifying the company's financial base. As of the end of the first quarter, Civitas reported a strong liquidity position with $1.5 billion available, comprising cash on hand and available borrowing capacity.
Operational and Financial Metrics
The company's performance in the Permian Basin was particularly notable with a 58% increase in volumes compared to the previous quarter, primarily due to the inclusion of the Vencer Energy assets. In contrast, DJ Basin volumes saw a slight decrease. The overall sales volume for Q1 2024 was higher than expected, benefiting from strong well performance and accelerated operations.
Regarding pricing, the average sales prices for crude oil, natural gas, and NGLs were $75.69 per barrel, $1.60 per thousand cubic feet, and $22.73 per barrel, respectively. These figures reflect a stable pricing environment conducive to sustained revenue growth.
Looking Ahead
Civitas has maintained its full-year guidance for 2024, expecting sales volumes to range between 325 - 345 MBoe/d. The company anticipates that the enhanced performance observed in the first quarter will offset the full-year impact of the asset sales, estimated at a 5 MBoe/d reduction. Civitas is poised for continued growth and value creation, leveraging its strategic initiatives and operational excellence.
Civitas is off to a great start this year with strong performance across our portfolio," said CEO Chris Doyle. "This quarter was the first reporting period that all our new businesses were together, and our results highlight just the beginning of Civitas' bright future ahead."
For more detailed information and future updates, stakeholders and interested parties are encouraged to attend the upcoming webcast and conference call, or visit the Civitas Resources website.
Explore the complete 8-K earnings release (here) from Civitas Resources Inc for further details.
