Civitas Resources (CIVI) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 adjusted EBITDAX of $910.1M and net income of $295.8M, with total sales volumes up 3% sequentially to 348 MBoe/d, driven by Permian and DJ Basin performance and recent acquisitions.

• Returned $227M to shareholders in Q3 2024, prioritizing share buybacks over variable dividends, and declared $144.9M in dividends.

• Permian acquisitions and ground game deals doubled company size, added over 75 new locations, and enhanced inventory depth and quality.

• Set Colorado record with Blue 4AH well, producing 165,000 barrels in 90 days, and achieved strong Watkins area results.

• Efficiency gains accelerated drilling and completions, with 70 gross operated wells turned to sales in Q3.

Financial highlights

• Q3 2024 revenue was $1.27B, with crude oil accounting for 87% of total revenue; adjusted EBITDAX was $910.1M and adjusted free cash flow was $366.3M.

• Net income for Q3 2024 was $295.8M; diluted EPS was $3.01, up from $1.56 in Q3 2023.

• Q3 capital expenditures totaled $438.4M, above expectations due to accelerated activity; Permian capex was $229M and DJ Basin capex was $209M.

• Q3 2024 average realized crude oil price was $75.46/Bbl; realized hedging gains of $18M, mainly from natural gas and Waha basis swaps.

• Q3 total cash operating expense was $9.32/Boe; lease operating expense was $4.58/Boe; DD&A was $16.36/Boe.

Outlook and guidance

• Q4 2024 oil volumes expected to rise 3% sequentially, with total sales volumes projected at 347–353 MBoe/d and capex forecasted at $245–$295M.

• 2024 capex expected at $1.85–$1.95B, funded by operating cash flows; free cash flow anticipated to be highest in Q4.

• 2025 plan to be finalized in February, focusing on capital efficiency, free cash flow, and flexibility amid commodity volatility.

• Management expects sufficient liquidity for near- and long-term needs; future dividends and buybacks depend on liquidity and board approval.