Group 1 - The company released its first quarter 2025 results along with supplemental materials and its 10-Q filing [3] - The conference call includes prepared remarks from the CEO, Chris Doyle, and a Q&A session with the CFO, Marianella Foschi, and other management members [4] - The operator announced that the conference call is being recorded and all lines are muted to prevent background noise [1][2] Group 2 - The company encourages participants to limit their questions to one question and one follow-up to ensure an efficient Q&A session [4] - Forward-looking statements will be made during the call, which are subject to risks and uncertainties that could lead to actual results differing from projections [5]

Financial Data and Key Metrics Changes - The company removed approximately $150 million of capital expenditures (CapEx) compared to 2024, focusing on capital discipline and lower reinvestment rates [7] - The company aims to achieve a year-end 2025 net debt target of $4.5 billion, which remains unchanged [11] - The hedge positions are now nearly 50% hedged on crude oil for the remainder of the year, valued at nearly $200 million [11] Business Line Data and Key Metrics Changes - Production volumes in the first quarter were slightly lower than expectations, primarily due to low activity levels at the end of the previous year and the start of 2025 [14] - The company expects oil production to grow by 5% in the second quarter, driven by growth in the Permian Basin [14] - In the Permian, the team is drilling 10% faster than expected, and there was a 5% sequential increase in throughput in the Midland Basin [15] Market Data and Key Metrics Changes - The company is experiencing significant uncertainty in the global economy and the oil market, which affects its operational strategies [7] - The current market conditions include volatility in oil prices and service costs, which the company is closely monitoring [8][22] Company Strategy and Development Direction - The company is focused on delivering sustainable free cash flow and has announced a comprehensive cost optimization plan to generate an additional $100 million of annual free cash flow [9] - The strategy includes protecting and strengthening the balance sheet to sustain shareholder returns, with a focus on deleveraging [11] - The company is not planning to be buyers in the asset market for the foreseeable future, focusing instead on optimizing existing assets [12] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the full-year outlook but is prepared to reduce activity levels if market conditions deteriorate further [8] - The company has a strong confidence in its ability to deliver guidance despite ongoing volatility in the macro environment [21] - Management emphasized the importance of maintaining flexibility to respond to changing market conditions [17] Other Important Information - The company completed its existing 10b5 share repurchase program, buying back nearly 2% of its shares outstanding [13] - The company has identified over $100 million in incremental free cash flow on a run rate basis, with approximately 40% benefiting the second half of 2025 [10] Q&A Session Summary Question: Comfort level executing on production and free cash flow ramp for the rest of 2025 - Management indicated confidence in the program and ability to deliver guidance, while remaining aware of macro volatility [20][22] Question: Response if oil prices fall below $55 - The first cuts would be completion-related, followed by drilling dollars, while maintaining some productive capacity [24][25] Question: LOE (Lease Operating Expense) trends and expectations - LOE was above expectations due to contractor issues, but costs are expected to decline in the second half of the year as water volumes peak [31][32] Question: Confidence in achieving $300 million asset sale target - The company is looking to monetize non-producing assets and infrastructure investments, which are less tied to upstream volatility [34] Question: Priorities in the uncertain macro environment - The top priority is to hit the $4.5 billion debt target by year-end, without sacrificing asset value [39] Question: Flexibility to alter trajectory to hit debt target if oil prices are around $55 - The company has various levers to achieve the target, including cost reductions and potential adjustments to CapEx [45][49] Question: Operational focus in the Delaware - The company is enhancing returns by extending laterals and targeting known zones with high returns [51][52] Question: DJ Basin volume trends and expectations - DJ volumes were down due to a lack of TILs and weather impacts, but growth is expected in the third quarter [58][60] Question: Oilfield service cost changes - The company is seeing opportunities to negotiate lower costs due to reduced activity in the industry [63][64]

Financial Data and Key Metrics Changes - The company removed approximately $150 million of capital expenditures (CapEx) compared to 2024, focusing on capital discipline and lower reinvestment rates [7] - The company aims to achieve a year-end 2025 net debt target of $4.5 billion, which remains unchanged [10] - The company has expanded its hedge position and is now nearly 50% hedged on crude oil for the remainder of the year, with hedge positions valued at nearly $200 million [10] Business Line Data and Key Metrics Changes - Production volumes in the first quarter were slightly lower than expectations, primarily due to low activity levels at the end of the previous year and the start of 2025 [13] - The company expects oil production to grow by 5% in the second quarter, led by growth in the Permian Basin [13] - In the Permian, the team is drilling 10% faster than expected, and there was a 5% sequential increase in throughput in the Midland Basin [14] Market Data and Key Metrics Changes - The company is experiencing significant uncertainty in the global economy and the oil price environment, which could impact service costs [7][10] - The company is not planning to be price takers in the divestment process, indicating a focus on maximizing asset value [11] Company Strategy and Development Direction - The company is prioritizing sustainable free cash flow and has announced a comprehensive cost optimization plan to generate an additional $100 million of annual free cash flow [8] - The focus is on protecting and strengthening the balance sheet to sustain shareholder returns over the long term [10] - The company is not planning to make acquisitions in the asset market for the foreseeable future, focusing instead on execution and optimization of existing assets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year outlook but acknowledged the need to adjust activity levels if market conditions deteriorate further [8][20] - The company is prepared to reduce capital expenditures and activity levels if oil prices remain low [22][46] - Management emphasized the importance of maintaining flexibility to respond to changing market conditions [16] Other Important Information - The company completed its existing 10b5 share repurchase program, buying back nearly 2% of its outstanding shares [12] - Operational challenges in the Permian due to contracted water takeaway elevated first-quarter costs, but the company plans to pursue cost recovery [15] Q&A Session Summary Question: Comfort level executing on production and free cash flow ramp for the rest of 2025 - Management expressed confidence in the production growth plan, with a strong second half expected, despite some first-quarter challenges due to weather [20] Question: Response if oil prices fall below $55 - The first cuts would be completion-related, followed by drilling dollars, while maintaining some productive capacity [24] Question: Trends in operating expenses and LOE expectations - LOE was above expectations due to contractor issues, but management expects costs to decline in the second half of the year as water volumes peak [30][32] Question: Confidence in achieving $300 million asset sale target - Management remains confident in achieving the target through non-producing assets and infrastructure, despite challenging market conditions [33] Question: Priorities in the uncertain macro environment - The top priority is to hit the $4.5 billion debt target, but management will not sacrifice asset value to achieve this [37] Question: Flexibility to alter trajectory to hit debt target if oil prices are low - Management indicated that they have multiple levers to adjust, including cost reductions and potential CapEx adjustments [44][46] Question: Operational focus in the Delaware - The company is enhancing returns by extending laterals and targeting known zones with high returns [48][49] Question: DJ volumes and second-quarter trends - DJ volumes were down due to a lack of TILs and weather impacts, but management expects growth to resume in the third quarter [55][56] Question: Changes in oilfield service costs - Management is seeing opportunities to negotiate lower costs due to reduced activity in the market, which should help manage overall costs [61][62]

NEW YORK, May 8, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Civitas Resources, Inc. (NYSE: CIVI).Shareholders who purchased shares of CIVI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/civitas-resources-loss-submission-form/?id=147324&from=4 CLASS PERIOD: February 27, 2 ...

Civitas Resources (CIVI) reported $1.19 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 10.2%. EPS of $1.77 for the same period compares to $1.74 a year ago.The reported revenue represents a surprise of -0.63% over the Zacks Consensus Estimate of $1.2 billion. With the consensus EPS estimate being $1.68, the EPS surprise was +5.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Civitas Resources (CIVI) came out with quarterly earnings of $1.77 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.36%. A quarter ago, it was expected that this oil and gas company would post earnings of $1.95 per share when it actually produced earnings of $1.78, delivering a surprise of -8.72%. Over the last four quarter ...

Financial Performance & Targets - Civitas reported $786 million in Adjusted EBITDAX for 1Q25[28] - The company generated $171 million in Adjusted Free Cash Flow (FCF) in 1Q25[28] - Civitas is targeting $45 billion in Net Debt by YE25, representing an $800 million reduction from YE24 pro-forma[10, 51] - The company aims to achieve $300 million in divestments by YE25[10] Cost Optimization & Efficiency - Civitas has a $100+ million cost optimization and efficiency initiative[10, 15] - Approximately $40 million of annualized savings are expected to impact FY25[10, 16] - DJ Basin completion efficiencies are up 10% from plan[28] Production & Hedging - 42% of wells drilled in 1Q25 were in the Permian Basin program[28, 37] - The company increased oil hedging to nearly 50% of 2025 production with average floors of ~$68/Bbl[23, 51] - 1Q25 total production was 311 MBoe/d, with oil production at 141 MBbl/d[49] Shareholder Returns - Civitas returned $121 million to shareholders in 1Q25, including ~$50 million in dividends and ~$71 million in share repurchases (15 million shares)[28] - The company maintains a resilient base dividend of $2/share annually[51]

Financial Performance - Net income for the quarter was $186 million, or $1.99 per diluted share, with cash flows from operating activities amounting to $719 million[106]. - Product revenues decreased by 8% to $1.2 billion for the three months ended March 31, 2025, down from $1.3 billion in the previous quarter[123]. - Total operating expenses decreased by 10% to $879 million for the three months ended March 31, 2025, compared to $974 million for the three months ended December 31, 2024[124]. - Adjusted EBITDAX for Q1 2025 was $786 million, down from $895 million in Q4 2024[152]. - Adjusted Free Cash Flow for Q1 2025 was $171 million, significantly lower than $520 million in Q4 2024[153]. Sales and Production - Total sales volumes decreased by 14% to 28 MMBoe for the three months ended March 31, 2025, compared to 32 MMBoe for the previous quarter[106]. - Average sales price for crude oil increased by 1% to $70.90 per Bbl, while natural gas prices surged by 118% to $2.48 per Mcf compared to the previous quarter[119]. - During Q1 2025, the company drilled 22, completed 33, and turned to sales 47 net operated wells in the Permian Basin, compared to 36, 43, and 35 wells in Q1 2024[144]. Expenses and Costs - Lease operating expense increased by 1% to $174 million, with a 16% increase on a per Boe basis, primarily driven by fixed operating costs in the DJ Basin[124]. - Gathering, transportation, and processing expense decreased by 12% to $87 million, attributed to a 14% decrease in sales volumes[125]. - Severance and ad valorem taxes increased by 3% to $89 million, with a 20% increase on a per Boe basis due to updated mill levies[128]. - Depreciation, depletion, and amortization expense decreased by 18% to $445 million, primarily due to a 14% decrease in sales volumes[129]. - General and administrative expense increased by 8% to $57 million, with a 23% increase on a per Boe basis due to non-recurring severance charges[130]. Capital Expenditures and Investments - Capital expenditures for drilling and related activities totaled $495 million during the quarter[106]. - Capital expenditures for drilling and completion activities decreased by $97 million, reflecting a 5% reduction in the 2025 capital investment program compared to 2024[144]. - Cash proceeds from increased draws on the Credit Facility were used to pay $475 million for Vencer acquisition consideration and $281 million for oil and gas properties in the Permian Basin[146]. Shareholder Returns and Liquidity - The company repurchased approximately 1.5 million shares of common stock for a total of $71 million and paid cash dividends of $50 million[106]. - Free cash flow was prioritized for debt reduction, leading to a decrease in dividends declared and paid by $0.95 per share compared to Q1 2024, maintaining a base dividend of $0.50 per share quarterly[145]. - Liquidity as of March 31, 2025, was $1.5 billion, consisting of $20 million in cash and $1.4 billion in available borrowing capacity[136]. - The company had $1.1 billion outstanding under its Credit Facility as of March 31, 2025, with compliance to all financial covenants[160]. Market Conditions and Operational Flexibility - The average NYMEX WTI crude oil price for the quarter was $71.42, compared to $70.27 in the previous quarter[113]. - The Permian Basin crude oil differential was a premium to WTI, while the DJ Basin crude oil price included a higher-grade quality differential[115]. - The company recorded a cash settlement gain of $3 million from natural gas derivative contracts during the quarter[117]. - The company maintains operational flexibility to adjust capital spending in response to market conditions and external factors affecting commodity prices[109]. - The marketability of production is influenced by third-party infrastructure availability, which could impact pricing and production continuity[163].

Exhibit 99.1 Civitas Resources, Inc. Reports First Quarter 2025 Results Implementing cost optimization and operational efficiency initiatives to deliver over $100 million in annualized free cash flow DENVER — May 7, 2025 - Civitas Resources, Inc. (NYSE: CIVI) (the "Company" or "Civitas") today reported its first quarter 2025 financial and operating results. A webcast and conference call to review the Company's results is planned for 6:30 a.m. MT (8:30 a.m. ET) on Thursday, May 8, 2025. Participation details ...

LOS ANGELES, May 7, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Civitas Resources, Inc. ("Civitas" or "the Company") (NYSE: CIVI) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics ...