NYSE$CIVI

Civitas Resources Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong second quarter results driven by Permian Basin acquisitions and operational efficiencies.

Civitas Resources reported strong second quarter results, driven by Permian Basin acquisitions and operational efficiencies. The company increased its share buyback authorization to $500 million and raised its 2024 sales volume outlook by 1.5%. Well costs in the Midland Basin are down 10% since the start of the year.

  • Permian Basin sales volumes increased nearly 12% from the first quarter.
  • Well costs in the Midland Basin are currently 10% lower than at the start of the year.
  • Total cash operating expense per BOE was $8.97, below expectations.
  • Share repurchase program increased to $500 million.

Headline financials

Total Revenue

$1.31B

Previous: $661M+98.8%
EPS (adj)

$2.06

Previous: $1.72+19.8%
Capital Expenditures

-$533M

No prior period
Free Cash Flow

-$174M

No prior period
Net Income

$216M

Previous: -$40.2M+637.9%
Operating Income

$283M

No prior period
Gross Profit

$455M

Previous: $661M-31.1%
Stock-Based Comp

$12.3M

Previous: $9.9M+23.9%

Revenue & EPS history

Civitas · Revenue · Quarterly

$1.31B

Q2 2024+98.8%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Civitas enhanced its capital return framework with flexibility for buybacks and balance sheet support. The company reduced full-year capital expectations by $50 million and raised the 2024 sales volume outlook by 1.5%.

Tailwinds

  • Capital return framework enhanced for share repurchase flexibility and balance sheet support.
  • Buyback authorization increased to $500 million.
  • Lower well costs driving $50 million reduction in full-year capital expectations.
  • 2024 sales volume outlook raised 1.5%.
  • Third quarter total volumes and oil are anticipated to be higher than the second quarter.

Headwinds

  • Natural gas differentials were significantly impacted by weak Waha pricing in the Permian Basin.
  • Second quarter DJ Basin volumes were lower than the first quarter of the year in part due to the two previously-announced non-core asset divestments which closed in March and May 2024.
  • Assets sold reduced second quarter average sales volumes by approximately 5 MBoe/d (~35% oil).
  • DJ Basin sales volumes reflect the timing of new wells commencing production which were weighted to the latter part of the second quarter, as well as temporary third-party facility downtime.
  • Realized hedging losses totaled $13 million for the second quarter of 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+2.0%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+4.5%

Avg return

30 days after

56%

31 / 55 earnings

Positive

+32.4%

Q4 2019

Best reaction

-18.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+3.7%+6.0%+15.5%
Q2 2025+7.8%+13.4%+23.2%
Q1 2025+0.8%+17.5%+5.6%
Q4 2024-18.1%-22.2%-28.7%
Q3 2024-0.9%-5.5%-12.9%
Q2 2024-13.4%-16.4%-12.3%
Q1 2024+6.7%+7.3%+4.0%
Q4 2023+6.8%+11.8%+20.2%
Q3 2023-8.3%-8.2%-9.1%
Q2 2023-4.1%+1.6%+10.9%
Q1 2023-1.5%+3.4%+7.9%
Q4 2022+13.4%+13.7%+4.0%
Q3 2022-0.0%+0.8%-3.7%
Q2 2022-3.2%-1.1%+11.8%
Q1 2022+6.2%-4.4%+31.1%
Q4 2021
Q3 2021+3.4%
Q2 2021+2.6%
Q1 2021+10.2%
Q4 2020-1.0%
Q3 2020+13.3%
Q2 2020+4.8%
Q1 2020+26.2%
Q4 2019+32.4%
Q3 2019-0.5%
Q2 2019+5.2%
Q1 2019+3.2%
Q4 2018-8.0%
Q3 2018-7.6%
Q2 2018-1.3%
Q1 2018-4.2%
Q4 2017+4.4%
Q3 2017+8.8%
Q2 2017+6.0%
Q1 2017+12.0%
Q4 2016-3.0%
Q3 2016-9.0%
Q2 2016+7.2%
Q1 2016-14.3%
Q4 2015-4.5%
Q3 2015-5.9%
Q2 2015+0.8%
Q1 2015+0.0%
Q4 2014+17.5%
Q3 2014-7.2%
Q2 2014+1.2%
Q1 2014-1.6%
Q4 2013+9.2%
Q3 2013+8.3%
Q2 2013-2.2%
Q1 2013-1.1%
Q4 2012+5.6%
Q3 2012-5.3%
Q2 2012+1.3%
Q1 2012+3.8%
Q4 2011+3.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro