Civitas Resources Reports $124 Million Net Income in Q2 2025, Down from $216 Million Year-Over-Year

Civitas Resources, Inc. reported a net income of $124 million, or $1.34 per diluted share, for the second quarter of 2025, reflecting a decrease from $216 million, or $2.17 per diluted share, in the same period of the previous year. Total operating net revenues for the quarter were $1.057 billion, down 19% from $1.313 billion year-over-year. The decline in revenue was primarily attributed to a 14% decrease in crude oil equivalent pricing, which was partially offset by a 3% increase in total sales volumes. For the first half of 2025, net income totaled $310 million, compared to $392 million in the first half of 2024, with total revenues decreasing from $2.642 billion to $2.251 billion.

In terms of operational metrics, Civitas reported total sales volumes of 29 million barrels of oil equivalent (MMBoe) for the second quarter, averaging 317 thousand barrels of oil equivalent per day (MBoe/d). The company’s capital expenditures for the quarter were $506 million, contributing to a total of $1 billion for the first half of the year. The company also repurchased approximately 1.6 million shares of its common stock for $72 million during the first half of 2025, as part of its ongoing capital return program.

Strategically, Civitas completed the acquisition of certain crude oil and natural gas assets from Vencer Energy, LLC, for approximately $2 billion in January 2024. This acquisition has been integrated into Civitas's operations, contributing to its production capabilities. The company has also focused on optimizing its capital allocation, with a commitment to directing a significant portion of its free cash flow towards debt reduction and maintaining a quarterly dividend of $0.50 per share.

Civitas's balance sheet as of June 30, 2025, showed total assets of $15.403 billion, with total liabilities of $8.609 billion, resulting in stockholders' equity of $6.794 billion. The company’s debt increased to $5.388 billion from $4.494 billion at the end of 2024, primarily due to the issuance of new senior notes. The company remains in compliance with all financial covenants under its credit facility, which has a borrowing capacity of $2.5 billion and is set to mature in August 2028.

Looking ahead, Civitas anticipates continued volatility in commodity prices, influenced by geopolitical factors and market conditions. The company plans to maintain operational flexibility to adjust its capital spending in response to these external factors. Management expressed confidence in the company’s ability to generate sufficient cash flow to meet its financial obligations and fund its capital program through the next 12 months.