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Civitas
🇺🇸 NYSE:CIVI
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•
Jun 30, 2024

Civitas Q2 2024 Earnings Report

Reported strong second quarter results driven by Permian Basin acquisitions and operational efficiencies.

Key Takeaways

Civitas Resources reported strong second quarter results, driven by Permian Basin acquisitions and operational efficiencies. The company increased its share buyback authorization to $500 million and raised its 2024 sales volume outlook by 1.5%. Well costs in the Midland Basin are down 10% since the start of the year.

Permian Basin sales volumes increased nearly 12% from the first quarter.

Well costs in the Midland Basin are currently 10% lower than at the start of the year.

Total cash operating expense per BOE was $8.97, below expectations.

Share repurchase program increased to $500 million.

Total Revenue
$1.31B
Previous year: $661M
+98.8%
EPS
$2.06
Previous year: $1.72
+19.8%
Oil Sales Volume
155.34K
0
Natural Gas Sales Volume
597.97K
0
Natural Gas Liquids Sales Volume
87.87K
0
Gross Profit
$455M
Previous year: $661M
-31.1%
Cash and Equivalents
$91.9M
Previous year: $2.7B
-96.6%
Free Cash Flow
-$174M
Total Assets
$15B
Previous year: $10.2B
+47.9%

Civitas

Civitas

Civitas Revenue by Segment

Forward Guidance

Civitas enhanced its capital return framework with flexibility for buybacks and balance sheet support. The company reduced full-year capital expectations by $50 million and raised the 2024 sales volume outlook by 1.5%.

Positive Outlook

  • Capital return framework enhanced for share repurchase flexibility and balance sheet support.
  • Buyback authorization increased to $500 million.
  • Lower well costs driving $50 million reduction in full-year capital expectations.
  • 2024 sales volume outlook raised 1.5%.
  • Third quarter total volumes and oil are anticipated to be higher than the second quarter.

Challenges Ahead

  • Natural gas differentials were significantly impacted by weak Waha pricing in the Permian Basin.
  • Second quarter DJ Basin volumes were lower than the first quarter of the year in part due to the two previously-announced non-core asset divestments which closed in March and May 2024.
  • Assets sold reduced second quarter average sales volumes by approximately 5 MBoe/d (~35% oil).
  • DJ Basin sales volumes reflect the timing of new wells commencing production which were weighted to the latter part of the second quarter, as well as temporary third-party facility downtime.
  • Realized hedging losses totaled $13 million for the second quarter of 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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