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Mar 31, 2025
Civitas Q1 2025 Earnings Report
Civitas Q1 2025 Earnings Report
Key Takeaways
Civitas Resources reported net income of $186 million and adjusted net income of $166 million for the first quarter of 2025, with crude oil, natural gas, and NGL revenues totaling $1.2 billion. The company generated $171 million in adjusted free cash flow and took strategic actions including launching a $100 million cost optimization initiative, adding commodity downside protection through hedging, and prioritizing net debt reduction in response to market volatility.
Delivered disciplined start to the year prioritizing free cash flow generation and strengthening the balance sheet.
Launched a $100-plus million cost optimization and efficiency initiative across the business.
Added significant commodity downside protection through additional hedging.
Prioritizing net debt reduction through free cash flow generation and targeting $300 million in asset divestments.
Forward Guidance
Civitas reiterated its full year 2025 outlook and provided second quarter guidance, anticipating oil volume growth primarily from new Permian wells, while positioning to adjust activity lower if market conditions deteriorate.
Positive Outlook
- Full year 2025 outlook was reiterated.
- Anticipate approximately five percent oil volume growth in the second quarter.
- Second quarter oil volume growth is primarily driven by new wells coming online in the Permian Basin.
- Q2 cash operating expenses per BOE are expected to decrease.
- Operating five drilling rigs and two frac crews in the Permian Basin.
Challenges Ahead
- Company is positioned to adjust activity levels lower should market conditions deteriorate further.
- Second quarter capital expenditures are expected to be modestly higher than the first quarter.
- Market volatility continues to be a factor influencing strategy.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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