On February 24, 2025, Civitas Resources Inc (CIVI, Financial) released its 8-K filing, detailing its financial and operational performance for the fourth quarter and full year of 2024. Civitas Resources Inc is an independent exploration and production company focused on oil and natural gas in the Rocky Mountain region, particularly in the Denver-Julesburg Basin of Colorado. The company is known for its efficient operations in the horizontal Niobrara and Codell formations.
Performance Overview
Civitas Resources Inc reported a net income of $151 million for the fourth quarter and $839 million for the full year 2024. Adjusted net income was slightly higher at $171 million for the quarter and $842 million for the year. The company's operating cash flow reached $858 million in the fourth quarter and $2,865 million for the year, indicating robust cash generation capabilities.
Financial Achievements and Industry Context
The company achieved an adjusted EBITDAX of $895 million for the fourth quarter and $3,652 million for the full year. These figures underscore Civitas Resources Inc's ability to generate significant earnings before interest, taxes, depreciation, amortization, and exploration expenses, which is crucial for sustaining operations and funding future growth in the oil and gas industry.
Key Financial Metrics
| Metric | Q4 2024 | Full Year 2024 |
|---|---|---|
| Net Income ($MM) | $151 | $839 |
| Adjusted Net Income ($MM) | $171 | $842 |
| Operating Cash Flow ($MM) | $858 | $2,865 |
| Adjusted EBITDAX ($MM) | $895 | $3,652 |
| Capital Expenditures ($MM) | $278 | $1,933 |
| Adjusted Free Cash Flow ($MM) | $519 | $1,266 |
Operational Highlights
Sales volumes increased by 1% to 352 MBoe/d, with oil volumes rising by 3% to 164 MBbl/d in the fourth quarter. The company effectively balanced its operations between the Permian and DJ Basins, with each contributing 50% to the sales volumes. Capital expenditures were in line with expectations, reflecting efficiency gains in drilling and completion activities.
Strategic Developments
Civitas Resources Inc successfully reduced its long-term debt by $350 million and returned $205 million to shareholders through dividends and share repurchases. The company also expanded its asset base with strategic acquisitions and divestitures, enhancing its future development inventory in both the Permian and DJ Basins.
Management Commentary
"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," said President and CEO Chris Doyle.
Analysis and Outlook
Civitas Resources Inc's performance in 2024 highlights its operational efficiency and strategic foresight in the oil and gas sector. The company's ability to generate substantial free cash flow and maintain a strong balance sheet positions it well for future growth and shareholder returns. The successful integration of new assets and the reduction of regulatory risks further enhance its long-term prospects.
Explore the complete 8-K earnings release (here) from Civitas Resources Inc for further details.
