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Civitas
🇺🇸 NYSE:CIVI
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Sep 30, 2024

Civitas Q3 2024 Earnings Report

Reported third quarter results, benefiting from increased production and free cash flow.

Key Takeaways

Civitas Resources reported strong third quarter 2024 results, driven by increased sales volumes and efficient capital spending. The company focused on returning capital to shareholders through dividends and share repurchases, while also reducing debt. Increased oil production is expected in the fourth quarter.

Returned $227 million to shareholders through dividends and share repurchases.

Reduced total debt by $88 million.

Anticipate a 3% increase in fourth quarter oil volumes from the third quarter.

Decreased average two-mile Midland Basin well costs by 13% from the beginning of the year.

Total Revenue
$1.27B
Previous year: $1.04B
+22.8%
EPS
$1.99
Previous year: $1.56
+27.6%
Oil Sales Volume
159K
Previous year: 155.34K
+2.4%
Natural Gas Sales Volume
603K
Previous year: 597.97K
+0.8%
Natural Gas Liquids Sales Volume
88.62K
Previous year: 87.87K
+0.9%
Gross Profit
$406M
Previous year: $448M
-9.4%
Cash and Equivalents
$47.1M
Previous year: $95.3M
-50.6%
Free Cash Flow
$366M
Previous year: $306M
+19.6%
Total Assets
$15B
Previous year: $12.8B
+16.9%

Civitas

Civitas

Civitas Revenue by Segment

Civitas Revenue by Geographic Location

Forward Guidance

Civitas anticipates increased oil volumes and free cash flow in the fourth quarter of 2024. Sales volumes are expected to be between 347 and 353 MBoe/d, with oil volumes ranging from 162 to 166 MBbl/d. Capital expenditures are projected to be $245 to $295 million.

Positive Outlook

  • Fourth quarter oil volumes are anticipated to increase.
  • Free cash flow generated in the fourth quarter is anticipated to be the highest for the year.
  • DJ Basin increase is anticipated to benefit from Watkins production uplifts.
  • Focus on shareholder returns and debt reduction.
  • Running 4 drilling rigs (3 Permian, 1 DJ) and 1.5 completion crews (1 Permian, 0.5 DJ) on average during the period.

Challenges Ahead

  • Permian Basin decline reflects few new wells commencing production in the final quarter of the year.
  • Natural gas differentials remained weak for Permian Waha basis.
  • Oil volumes were impacted approximately 2 MBbl/d as a result of temporary third-party facility downtime in the DJ Basin and water takeaway constraints in the Permian Basin.
  • Effective tax rate for the quarter was 24%, with all of the amount deferred.
  • Interest expense of $118 million, which includes amortization on the remaining deferred Vencer acquisition payment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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