Civitas Resources (CIVI) Q1 2025 earnings summary

Executive summary

• Achieved $186M net income, $171M adjusted free cash flow, $786M adjusted EBITDAX, and $1.2B in revenues in Q1 2025, with $121M returned to shareholders via dividends and share repurchases.

• Launched a $100M+ cost optimization plan, targeting $40M benefit in 2025 and full impact in 2026.

• Maintained strong liquidity of $1.5B at quarter-end, with increased credit facility commitment to $2.5B and no material near-term debt maturities.

• Prioritized net debt reduction over variable dividends, maintaining a $0.50/share base dividend and targeting $4.5B net debt by YE25.

• Increased oil hedging to nearly 50% of 2025 production, adding 8 MMBbls of new oil hedges at an average floor of $68/Bbl.

Financial highlights

• Q1 2025 net income: $186M; adjusted EBITDAX: $786M; adjusted free cash flow: $171M; operating cash flow: $719M.

• Revenues were $1.2B, with product revenues down 8% sequentially due to a 14% drop in sales volumes, partially offset by a 7% increase in realized pricing.

• Cash operating expenses: $11.25–$11.39/Boe in Q1 2025, with Q2 guidance of $10.35–$10.85/Boe.

• 1Q25 production: 311 MBoe/d total, 141 MBbl/d oil; Permian Basin contributed 53% of Q1 volumes.

• Net debt at quarter-end was $5.1B, with $1.5B in liquidity and a permitted net leverage ratio covenant of 3.0x.

Outlook and guidance

• Reiterated full-year 2025 guidance, with 2Q25 production guidance of 320–328 MBoe/d and 146–151 MBbl/d oil.

• FY25 production guidance: 325–335 MBoe/d total, 150–155 MBbl/d oil; FY25 capex: $1.8–$1.9B.

• Targeting $4.5B net debt and $300M in asset divestments by year-end 2025.

• Will adjust activity levels if oil prices remain in the mid to low $50s for a sustained period.

• Management expects the 2025 capital program to be funded by operating cash flows, with sufficient liquidity to meet obligations.