Civitas Resources(US:CIVI)2025-11-06 21:24Financial Performance - Third quarter 2025 net income was $177 million, with adjusted net income of $172 million, reflecting strong financial performance [3]. - Total operating net revenues for Q3 2025 were $1,168 million, a decrease of 8.2% from $1,272 million in Q3 2024 [17]. - Net income for Q3 2025 was $177 million, down 40.3% compared to $296 million in Q3 2024 [17]. - Earnings per share (EPS) for Q3 2025 were $1.99, a decline from $3.02 in Q3 2024 [17]. - Adjusted Net Income for Q3 2025 was $172 million, up from $92 million in Q2 2025, with Adjusted Net Income per diluted share increasing to $1.93 from $0.99 [24]. - Adjusted EBITDAX for Q3 2025 was $855 million, compared to $749 million in Q2 2025, reflecting strong operational performance [26]. Cash Flow and Liquidity - Operating cash flow for the third quarter reached $860 million, while adjusted EBITDAX was $855 million [3]. - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $1,877 million, compared to $2,007 million for the same period in 2024, reflecting a decrease of 6.5% [18]. - Financial liquidity at the end of the third quarter was $2.2 billion, including cash on hand and available borrowings [10]. - Net cash provided by operating activities for Q3 2025 was $860 million, compared to $298 million in Q2 2025, and $1,877 million for the nine months ended September 30, 2025, down from $2,007 million in the same period of 2024 [28]. - Adjusted Free Cash Flow for Q3 2025 was $254 million, an increase from $123 million in Q2 2025, and $548 million for the nine months ended September 30, 2025, compared to $747 million in the same period of 2024 [28]. Capital Expenditures and Investments - Capital expenditures totaled $491 million, reflecting ongoing drilling and completion efficiencies [10]. - Capital expenditures for drilling and completion activities were $471 million in Q3 2025, compared to $541 million in Q3 2024 [18]. - Capital expenditures for Q3 2025 totaled $491 million, with $249 million in the Permian Basin and $238 million in the DJ Basin [28]. Debt and Equity - The company reduced net debt by $237 million and repurchased $250 million of its stock, representing approximately 8% of outstanding shares [5]. - Total debt as of September 30, 2025, was $5,200 million, a decrease from $5,450 million as of June 30, 2025 [32]. - Net debt as of September 30, 2025, was $5,144 million, compared to $5,381 million as of June 30, 2025, and $4,949 million as of December 31, 2024 [32]. - Total stockholders' equity increased to $6,685 million as of September 30, 2025, from $6,629 million at the end of 2024 [19]. Sales and Production - Sales volumes increased to 336 MBoe/d, with oil volumes at 158 MBbl/d, both up 6% from the previous quarter [5]. - Average sales volumes for crude oil in the Permian Basin increased to 86 MBbl/d in Q3 2025 from 83 MBbl/d in Q2 2025, while total average sales volumes reached 336 MBoe/d [21]. - Total average sales volumes for natural gas reached 546 MMcf/d in Q3 2025, up from 524 MMcf/d in Q2 2025 [21]. Dividends and Shareholder Returns - A quarterly dividend of $0.50 per share was declared, payable on December 29, 2025 [8]. - The company repurchased and retired $250 million of common stock in Q3 2025, compared to $78 million in Q3 2024 [18]. Risk Management and Guidance - Due to the pending merger with SM Energy, the company has discontinued providing future financial guidance [9]. - The company added over 2 million barrels of oil hedges covering the next 12 months during the third quarter [10]. - The derivative cash settlement gain for crude oil was $39 million in Q3 2025, up from $36 million in Q2 2025, indicating effective price risk management [21].