Civitas Resources(US:CIVI)2025-11-06 21:31Financial Performance - Net income for the three months ended September 30, 2025, was $177 million, or $1.99 per diluted share, with adjusted EBITDAX of $855 million[123]. - Cash flows provided by operating activities for the three months ended September 30, 2025, were $860 million, and adjusted free cash flow was $254 million[123]. - Crude oil sales revenue for the three months ended September 30, 2025, was $950 million, a 9% increase from $868 million in the previous quarter[137]. - Natural gas sales revenue for the three months ended September 30, 2025, was $65 million, a 35% increase from $48 million in the previous quarter[137]. - Total product revenue for the three months ended September 30, 2025, was $1.16 billion, a 10% increase from $1.05 billion in the previous quarter[137]. - Product revenues increased 10% to $1.2 billion for the three months ended September 30, 2025, compared to $1.1 billion for the three months ended June 30, 2025, driven by a 7% increase in total sales volumes and a 3% increase in total product pricing per Boe[141]. - Net income for the three months ended September 30, 2025, was $177 million, compared to $124 million for the previous quarter and $688 million for the nine months ended September 30, 2024[176]. - Adjusted EBITDAX for the three months ended September 30, 2025, was $855 million, an increase from $749 million in the previous quarter and $2,389 million for the nine months ended September 30, 2024[176]. - Net cash provided by operating activities for the three months ended September 30, 2025, was $860 million, compared to $298 million for the previous quarter and $1,877 million for the nine months ended September 30, 2024[179]. - Adjusted Free Cash Flow for the three months ended September 30, 2025, was $254 million, up from $123 million in the previous quarter and $548 million for the nine months ended September 30, 2024[179]. Sales and Production - Total sales volumes for the three months ended September 30, 2025, were 31 MMBoe, with average sales volumes of 336 MBoe per day[123]. - Average crude oil sales price after derivatives for the three months ended September 30, 2025, was $67.87 per Bbl, compared to $66.55 in the previous quarter and $76.16 for the same period in 2024[181]. - Average natural gas sales price after derivatives for the three months ended September 30, 2025, was $1.81 per Mcf, compared to $1.69 in the previous quarter and $0.86 for the same period in 2024[181]. - The company drilled, completed, and turned to sales 78, 94, and 115 net operated wells in the Permian Basin during the nine months ended September 30, 2025[172]. Expenses and Costs - Total operating expenses increased 1% to $895 million for the three months ended September 30, 2025, and decreased 3% to $2.661 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[143]. - Lease operating expense increased 21% to $491 million for the nine months ended September 30, 2025, compared to $405 million for the same period in 2024, with the Permian Basin accounting for approximately 60% of the increase[144]. - Gathering, transportation, and processing expense increased 6% to $88 million for the three months ended September 30, 2025, but decreased 8% to $258 million for the nine months ended September 30, 2025, compared to the same period in 2024[146]. - Severance and ad valorem taxes increased 8% to $81 million for the three months ended September 30, 2025, but decreased 16% to $245 million for the nine months ended September 30, 2025, compared to the same period in 2024[149]. - Depreciation, depletion, and amortization expense decreased 1% to $497 million for the three months ended September 30, 2025, and decreased 5% to $1.4 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[150][151]. - General and administrative expense decreased 2% to $52 million for the three months ended September 30, 2025, and decreased 7% to $162 million for the nine months ended September 30, 2025, compared to the same periods in 2024[152][153]. Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, totaled $491 million[123]. - Capital expenditures for drilling and completion activities decreased by $200 million year over year, reflecting a 5% reduction in the 2025 capital investment program compared to 2024[172]. Debt and Liquidity - As of September 30, 2025, liquidity was $2.2 billion, consisting of $56 million in cash and $2.1 billion in available borrowing capacity on the Credit Facility[163]. - Total sources of cash and cash equivalents for the nine months ended September 30, 2025, were $4.909 billion, an increase from $3.822 billion in the same period of 2024[168]. - Total uses of cash and cash equivalents for the nine months ended September 30, 2025, were $4.929 billion, compared to $4.902 billion in the same period of 2024[168]. - Interest expense for the three months ended September 30, 2025, was $120 million, compared to $114 million for the three months ended June 30, 2025, with average debt outstanding of $5.5 billion and $5.4 billion, respectively[157]. - For the nine months ended September 30, 2025, interest expense was $341 million, slightly down from $342 million in the same period of 2024, with average debt outstanding increasing from $4.8 billion to $5.4 billion[158]. - As of September 30, 2025, the company had $350 million outstanding under its Credit Facility, with compliance to all financial covenants[186]. Market and Risk Factors - The company is exposed to counterparty credit risk associated with its derivative activities, with contracts executed with 16 counterparties, all having investment grade credit ratings[187]. - The marketability of the company's production is influenced by the availability and capacity of third-party refineries and pipeline infrastructure, which could affect pricing and production plans[190].