Civitas Resources, Inc. (NYSE: CIVI) (“Civitas” or the
“Company”), today announced the execution of a definitive agreement
to repurchase approximately 1.04 million shares of its common stock
from Vitol at a price of $72.00 per share, totaling $75 million.
Civitas’ acquisition of certain oil and gas assets in the Permian
Basin from Vencer Energy, LLC, a Vitol investment, closed on
January 2, 2024, in exchange for approximately 7.2 million shares
of Civitas stock along with $1.55 billion in cash ($1 billion paid
at closing and a remaining $550 million payable on January 3,
2025). Along with other open market sales since the first of the
year, the repurchase brings Vitol’s current equity position in
Civitas to less than 2% of Civitas’ outstanding shares.
Combined with share repurchases in the first quarter of 2024,
Civitas has now bought back $142 million worth of its shares (2.07
million shares at an average price of $68.56) year-to-date.
Following the completion of the transaction, Civitas’ remaining
share repurchase authorization will be approximately $338 million
through the end of 2024.
In addition to the share repurchases, Civitas has agreed to pay
$75 million of its $550 million deferred payment obligation to
Vitol prior to the due date. Of this amount, the Company will pay
$37.5 million in May 2024 and plans to pay an additional $37.5
million in July 2024. The remaining $475 million will remain
payable to Vitol on or before January 3, 2025.
About Civitas
Civitas Resources, Inc. is an independent, domestic oil and gas
producer focused on development of its premier assets in the
Denver-Julesburg (“DJ”) and Permian Basins. Civitas has a proven
business model combining capital discipline, a strong balance
sheet, cash flow generation and sustainable cash returns to
shareholders. Civitas employs leading ESG practices and is
Colorado’s first carbon neutral oil and gas producer. For more
information about Civitas, please visit
www.civitasresources.com.
Forward-Looking Statements and Cautionary Statements
Certain statements in this press release concerning future
opportunities for Civitas, future financial performance and
condition, guidance, and any other statements regarding Civitas’
future expectations, beliefs, plans, objectives, financial
conditions, returns to stockholders, assumptions, or future events
or performance that are not historical facts are “forward-looking”
statements based on assumptions currently believed to be valid.
Forward-looking statements are all statements other than statements
of historical facts. The words “anticipate,” “believe,” “ensure,”
“expect,” “if,” “intend,” “estimate,” “probable,” “project,”
“forecasts,” “predict,” “outlook,” “aim,” “will,” “could,”
“should,” “would,” “potential,” “may,” “might,” “anticipate,”
“likely,” “plan,” “positioned,” “strategy,” and similar expressions
or other words of similar meaning, and the negatives thereof, are
intended to identify forward-looking statements. Specific
forward-looking statements include statements regarding the
Company’s plans and expectations with respect to its future ability
to return cash to stockholders. The forward-looking statements are
intended to be subject to the safe harbor provided by Section 27A
of the Securities Act of 1933, as amended, Section 21E of the
Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995.
These forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from those anticipated, including, but not limited to, Civitas’
future financial condition, results of operations, strategy, and
plans; the ability of Civitas to realize anticipated synergies
related to Civitas’ recent acquisitions in the timeframe expected
or at all; changes in capital markets and the ability of Civitas to
finance operations in the manner expected; the effects of commodity
prices; the risks of oil and gas activities; and the fact that
operating costs and business disruption may be greater than
expected. Additionally, risks and uncertainties that could cause
actual results to differ materially from those anticipated also
include: declines or volatility in the prices we receive for our
oil, natural gas, and natural gas liquids; general economic
conditions, whether internationally, nationally, or in the regional
and local market areas in which we do business, including any
future economic downturn, the impact of continued or further
inflation, disruption in the financial markets, and the
availability of credit on acceptable terms; the Company’s ability
to identify and select possible additional acquisition and
disposition opportunities; the effects of disruption of our
operations or excess supply of oil and natural gas due to world
health events, and the actions by certain oil and natural gas
producing countries, including Russia; the ability of our customers
to meet their obligations to us; our access to capital on
acceptable terms; our ability to generate sufficient cash flow from
operations, borrowings, or other sources to enable us to fully
develop our undeveloped acreage positions; our ability to continue
to pay dividends at their current levels or at all; the presence or
recoverability of estimated oil and natural gas reserves and the
actual future sales volume rates and associated costs;
uncertainties associated with estimates of proved oil and gas
reserves; the possibility that the industry may be subject to
future local, state, and federal regulatory or legislative actions
(including additional taxes and changes in environmental, health
and safety regulation and regulations addressing climate change);
environmental, health and safety risks; seasonal weather
conditions, as well as severe weather and other natural events
caused by climate change; lease stipulations; drilling and
operating risks, including the risks associated with the employment
of horizontal drilling and completion techniques; our ability to
acquire adequate supplies of water for drilling and completion
operations; the availability of oilfield equipment, services, and
personnel; exploration and development risks; operational
interruption of centralized oil and natural gas processing
facilities; competition in the oil and natural gas industry;
management’s ability to execute our plans to meet our goals;
unforeseen difficulties encountered in operating in new geographic
areas; our ability to attract and retain key members of our senior
management and key technical employees; our ability to maintain
effective internal controls; access to adequate gathering systems
and pipeline take-away capacity; our ability to secure adequate
processing capacity for natural gas we produce, to secure adequate
transportation for oil, natural gas, and natural gas liquids we
produce, and to sell the oil, natural gas, and natural gas liquids
at market prices; costs and other risks associated with perfecting
title for mineral rights in some of our properties; political
conditions in or affecting other producing countries, including
conflicts in or relating to the Middle East (including the current
events related to the Israel-Palestine conflict), South America,
and Russia (including the current events involving Russia and
Ukraine), and other sustained military campaigns or acts of
terrorism or sabotage; the effects of any pandemic or other global
health epidemic; other economic, competitive, governmental,
legislative, regulatory, geopolitical, and technological factors
that may negatively impact our businesses, operations, or pricing;
and disruptions to our business due to acquisitions and other
significant transactions. Expectations regarding business outlook,
including changes in revenue, pricing, capital expenditures, cash
flow generation, strategies for our operations, oil and natural gas
market conditions, legal, economic and regulatory conditions, and
environmental matters are only forecasts regarding these
matters.
Additional information concerning other factors that could cause
results to differ materially from those described above can be
found under Item 1A. “Risk Factors” and “Management’s Discussion
and Analysis” sections in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2023, subsequently filed Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, and other
filings made with the Securities and Exchange Commission.
All forward-looking statements speak only as of the date they
are made and are based on information available at the time they
were made. The Company assumes no obligation to update
forward-looking statements to reflect circumstances or events that
occur after the date the forward-looking statements were made or to
reflect the occurrence of unanticipated events except as required
by federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240502774959/en/
Civitas Contacts Investor Relations: Brad Whitmarsh,
832.736.8909, bwhitmarsh@civiresources.com Kara English,
303.312.8790 kenglish@civiresources.com
Media: Rich Coolidge, info@civiresources.com
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