Civitas Resources (CIVI) Q4 Results - Feb 27

[dan_s]

Fourth Quarter 2023 Highlights

Net income of $303 million and Adjusted EBITDAX of $763 million < My Q4 forecast was $224.4 million Adjusted Net Income.

Net cash provided by operating activities of $843 million and free cash flow of $215 million

Fixed-plus-variable dividend, to be paid in March 2024, of $1.45 per share

Average sales of 279 thousand barrels of crude oil equivalent per day ("MBoe/d"), of which 47% was crude oil. DJ Basin production averaged 173 MBoe/d and Permian Basin production averaged 106 MBoe/d < Beat my forecast of 272,000 Boepd and 130,000 Bopd.

Divested $85 million of non-core DJ Basin acreage, primarily non-operated with minimal production; remain on-track to achieve $300 million divestment target by mid-year 2024

Cash on hand at the end of the year of $1.1 billion includes proceeds from the Company's $1 billion senior notes issued in support of its financing for the Vencer Energy ("Vencer") acquisition, which closed in January 2024

Full Year 2023 Highlights

Added significant scale and diversified the Company's asset base by acquiring approximately $7 billion in Permian Basin assets

Combined, the transactions added approximately 160 MBoe/d of production, 112,000 net acres and 1,200 high-value development locations through the acquisitions of Tap Rock Resources, LLC ("Tap Rock"), Hibernia Energy III, LLC ("Hibernia") and Vencer

Met all key deliverables under the Company's 2023 business plan, delivering full-year production and capital investments within guidance

Returned approximately $1 billion to shareholders through base and variable dividends, along with share repurchases, representing more than 16% of the Company's current market capitalization

Reduced Civitas' total recordable incident rate in the DJ Basin by 4% as compared to 2022, while decreasing the occurrence of operated spills by 43%

"Civitas is a remarkably different company today. As our DJ Basin asset continues to outperform, we were successful in strategically expanding our portfolio over the last year by capturing accretive acquisitions that provide us with important scale and diversification in another world-class unconventional basin, the Permian. With a lengthened runway of high-return development opportunities, we are better positioned today to create sustainable, long-term value for our shareholders. Our 2024 outlook builds on the momentum we created over the last year as our premier asset base provides us with more flexibility in our capital allocation and higher certainty in our outcomes. Our focus in 2024 is clear: maximize free cash flow, return cash to owners, and maintain our strong balance sheet," said CEO Chris Doyle.
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Good 4th quarter and more than 50% production growth in 2024 due to the Vencer Energy Acquisition that closed January 2, 2024.
I will need to spend a few hours on it tomorrow.