Civitas Resources(US:CIVI)2025-08-07 12:00Financial Performance & Capital Allocation - The company reported Adjusted EBITDAX of $749 million in 2Q25[30] - Adjusted Free Cash Flow (FCF) was $123 million in 2Q25[30] - A $750 million buyback authorization was reinstated, with a $250 million Accelerated Share Repurchase (ASR) planned for 2025[13] - The company is targeting $4.5 billion net debt around YE25[15] Operational Efficiency & Cost Reduction - A cost optimization and capital efficiency initiative is on track, projecting $40 million savings impact in 2025 and a $100 million run-rate in 2026[11] - Well costs have been reduced in all basins: Delaware (-7%), Midland (-5%), and DJ (-3%) since the beginning of 2025[30] Asset Divestment & Portfolio Optimization - Non-core DJ Basin asset sales of $435 million have been completed, exceeding the year-to-date divestment goal at an EBITDAX multiple >4x[12] - Divestments are expected to streamline DJ Basin operations, focusing on core near-term development areas[19] - 2026 production from divested assets is estimated at 10 thousand barrels of oil equivalent per day (MBoe/d), with a 4Q25 impact of approximately 12 MBoe/d[19] Production & Guidance - Oil production grew by 6% to 149 thousand barrels per day (MBbl/d) in 2Q25[30] - Total volumes are expected to increase by 5.5% from 2Q25 to 3Q25E[62]