Civitas Resources Reports 50% Revenue Growth to $5.2 Billion for Fiscal Year 2024

Civitas Resources, Inc. reported significant financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $5.2 billion, a 50% increase from $3.5 billion in 2023. The company achieved a net income of $838.7 million, or $8.46 per diluted share, compared to $784.3 million, or $9.02 per diluted share, in the previous year. Cash flow from operating activities also rose to $2.9 billion, up from $2.2 billion in 2023, while Adjusted Free Cash Flow increased to $1.3 billion from $795.9 million. This growth was primarily driven by acquisitions, including the Vencer Acquisition, which added approximately 44,000 net acres in the Midland Basin and contributed to a 63% increase in total sales volumes.

The company made notable strategic moves in 2024, including the completion of the Vencer Acquisition on January 2, 2024, for approximately $2 billion. This acquisition was funded through cash on hand and the issuance of $1 billion in Senior Notes. Civitas also continued to expand its footprint in the DJ and Permian Basins through smaller-scale leasing activities and asset exchanges. In addition to acquisitions, the company repurchased approximately 7.3 million shares of its common stock for $427.2 million and paid $493.8 million in dividends during the year.

Operationally, Civitas reported a 14% increase in proved reserves, totaling 797.7 million barrels of oil equivalent (MMBoe) as of December 31, 2024. The average daily production increased significantly, with total sales volumes reaching 126,135 MMBoe, driven by the successful integration of the Hibernia, Tap Rock, and Vencer acquisitions. The company operated an average of 1.3 drilling rigs and 1.5 completion crews in the DJ Basin, while in the Permian Basin, it operated 4.5 drilling rigs and 2.0 completion crews, resulting in a total of 237 development wells turned to sales.

Looking ahead, Civitas plans to invest between $1.8 billion and $1.9 billion in capital expenditures for 2025, focusing on continued development in the DJ and Permian Basins. The company anticipates average production of 325 to 335 MMBoe per day for the year. Civitas is also committed to sustainability, with plans to allocate capital towards emission reduction projects and compliance with environmental regulations. The company remains optimistic about its ability to generate cash flow and meet its financial obligations, despite the inherent volatility in commodity prices and market conditions.