Civitas Resources Reports Q3 2025 Financial Results with $177M Net Income

Civitas Resources, Inc. reported its financial results for the third quarter of 2025, revealing a net income of $177 million, or $1.99 per diluted share, compared to $296 million, or $3.02 per diluted share, in the same period last year. Total operating net revenues for the quarter were $1.168 billion, a decrease from $1.272 billion in the prior year, primarily driven by a decline in crude oil and natural gas prices. For the nine months ended September 30, 2025, the company recorded a net income of $487 million, down from $688 million in the same period of 2024, with total revenues of $3.419 billion compared to $3.914 billion in the previous year.

The company experienced a 7% increase in total sales volumes for the third quarter, reaching 31 million barrels of oil equivalent (MMBoe), while average sales volumes per day were 336 MMBoe. However, year-to-date sales volumes decreased by 6% to 88 MMBoe compared to the same period in 2024. The average realized price for crude oil was $65.24 per barrel, reflecting a 14% decline from the previous year, while natural gas prices saw a significant increase of 152% year-over-year, averaging $1.61 per Mcf.

Civitas has been active in strategic developments, including the completion of the Vencer Acquisition in January 2024, which added significant crude oil and natural gas assets to its portfolio. The company also executed two divestitures of non-core assets in the DJ Basin, generating $435 million in cash. As of September 30, 2025, Civitas had 85,303,179 shares of common stock outstanding, down from 93,933,857 shares at the end of 2024, reflecting ongoing stock repurchase activities.

Operationally, Civitas reported a total capital expenditure of $491 million for the quarter, with a focus on drilling, completions, and midstream assets. The company has also reinstated a capital return strategy, allocating 50% of its annual adjusted free cash flow to share repurchases after maintaining a base dividend of $0.50 per share. The company’s liquidity position remains strong, with $2.2 billion available, consisting of $56 million in cash and $2.1 billion in borrowing capacity under its credit facility.

Looking ahead, Civitas anticipates continued volatility in commodity prices due to geopolitical tensions and market conditions. The company remains focused on optimizing its capital expenditures and maintaining operational flexibility to adapt to changing market dynamics. The recent merger agreement with SM Energy, which is subject to various approvals, is expected to further enhance Civitas's market position and operational capabilities.