Businesswire·2025-11-06 21:15Core Insights - Civitas Resources reported strong financial results for the third quarter of 2025, with net income of $177 million and operating cash flow of $860 million, driven by increased production and reduced cash operating expenses [3][4][6]. Financial Performance - Net income for the third quarter was $177 million, compared to $296 million in the same quarter of the previous year [3][18]. - Adjusted net income was $172 million for the quarter, reflecting a significant increase from $92 million in the previous quarter [24][27]. - Operating cash flow reached $860 million, up from $835 million in the previous year [19]. - Adjusted EBITDAX for the quarter was $855 million, compared to $2,389 million year-to-date [3][4]. - Sales volumes increased to 336 MBoe/d, with oil volumes rising to 158 MBbl/d, marking a 6% increase from the second quarter [4][8]. Operational Highlights - The company successfully reduced net debt by $237 million and repurchased $250 million of its stock, representing approximately 8% of outstanding shares [4][8]. - Capital expenditures totaled $491 million, reflecting ongoing drilling and completion efficiencies [4][8]. - The company declared a quarterly dividend of $0.50 per share, payable on December 29, 2025 [9]. Production and Sales - Production from the Permian Basin increased by 6% to 181 MBoe/d, with oil volumes growing to 86 MBbl/d [8][22]. - The DJ Basin also saw a 6% increase in production to 155 MBoe/d, with oil volumes rising to 72 MBbl/d [8][22]. - Crude oil, natural gas, and NGL revenues totaled $1.2 billion, benefiting from strong volumes and realizations [8][18]. Market Position and Strategy - Civitas Resources focuses on maximizing shareholder returns through significant free cash flow generation, maintaining a strong balance sheet, and returning capital to shareholders [11]. - The company has discontinued providing quarterly and annual guidance due to the pending merger with SM Energy [10].