Civitas Resources(US:CIVI) ZACKS·2025-11-10 17:56Core Insights - Civitas Resources, Inc. (CIVI) reported third-quarter 2025 adjusted earnings per share of $1.93, exceeding the Zacks Consensus Estimate of $1.34, driven by higher natural gas price realizations, although down from $1.99 in the previous year due to lower oil price realizations [1][10] - The company’s revenues of $1.2 billion fell 8.2% from $1.3 billion year-over-year and missed the Zacks Consensus Estimate by $13 million, primarily due to a decline in oil and natural gas sales volume [2][10] - Civitas and SM Energy announced a merger agreement involving an all-stock deal, with a combined company valuation of approximately $12.8 billion, expected to generate over $1.4 billion in free cash flow in 2025 [3][10] Financial Performance - The average third-quarter sales volume decreased by 3.5% year-over-year to 336 thousand barrels of oil equivalent per day (Mboe/d), surpassing the Zacks Consensus Estimate of 332.2 Mboe/d [5] - Oil volume for the period was 158 thousand barrels per day (MBbls/d), slightly down from 159 MBbls/d in the prior year, while natural gas production was 546 thousand cubic feet per day [5] - The average sales price for oil was $65.24 per barrel, down 13.3% from $75 in the prior year, while the average realized natural gas price increased to $1.29 per thousand cubic feet from $0.17 [6] Costs and Expenses - Total operating expenses decreased to $895 million from $926 million year-over-year, attributed to lower taxes, depreciation, and other expenses, despite a 7.5% increase in lease operating expenses to $159 million [7] - The unit cash operating cost was reported at $9.67 per BOE [7] Financial Position - Cash flow from operations totaled $860 million, with capital expenditures of $491 million, resulting in adjusted free cash flow of $254 million [8] - Civitas approved a quarterly dividend of 50 cents per share, with a long-term debt of $5.1 billion and a debt-to-capitalization ratio of 43.5% as of September 30 [8]