NYSE$CIVI

Civitas Resources Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported third quarter results, benefiting from increased production and free cash flow.

Civitas Resources reported strong third quarter 2024 results, driven by increased sales volumes and efficient capital spending. The company focused on returning capital to shareholders through dividends and share repurchases, while also reducing debt. Increased oil production is expected in the fourth quarter.

  • Returned $227 million to shareholders through dividends and share repurchases.
  • Reduced total debt by $88 million.
  • Anticipate a 3% increase in fourth quarter oil volumes from the third quarter.
  • Decreased average two-mile Midland Basin well costs by 13% from the beginning of the year.

Headline financials

Total Revenue

$1.27B

Previous: $1.04B+22.8%
EPS (adj)

$1.99

Previous: $1.56+27.6%
Capital Expenditures

-$552M

Previous: -$213M-159.4%
Net Income

$296M

Previous: $140M+111.8%
Operating Income

$389M

Previous: $408M-4.5%
Gross Profit

$406M

Previous: $448M-9.4%
Stock-Based Comp

$12.7M

Previous: $8.3M+52.5%

Revenue & EPS history

Civitas · Revenue · Quarterly

$1.27B

Q3 2024+22.8%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Civitas anticipates increased oil volumes and free cash flow in the fourth quarter of 2024. Sales volumes are expected to be between 347 and 353 MBoe/d, with oil volumes ranging from 162 to 166 MBbl/d. Capital expenditures are projected to be $245 to $295 million.

Tailwinds

  • Fourth quarter oil volumes are anticipated to increase.
  • Free cash flow generated in the fourth quarter is anticipated to be the highest for the year.
  • DJ Basin increase is anticipated to benefit from Watkins production uplifts.
  • Focus on shareholder returns and debt reduction.
  • Running 4 drilling rigs (3 Permian, 1 DJ) and 1.5 completion crews (1 Permian, 0.5 DJ) on average during the period.

Headwinds

  • Permian Basin decline reflects few new wells commencing production in the final quarter of the year.
  • Natural gas differentials remained weak for Permian Waha basis.
  • Oil volumes were impacted approximately 2 MBbl/d as a result of temporary third-party facility downtime in the DJ Basin and water takeaway constraints in the Permian Basin.
  • Effective tax rate for the quarter was 24%, with all of the amount deferred.
  • Interest expense of $118 million, which includes amortization on the remaining deferred Vencer acquisition payment.

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 Q3 2024

Historical avgQ3 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%

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