Civitas Resources, Inc. Reports Fourth Quarter and Full Year 2024 Results
DENVER–(BUSINESS WIRE)–
Civitas Resources, Inc. (NYSE: CIVI) (the “Company” or “Civitas”) today reported its fourth quarter and full year 2024 financial and operating results. A webcast and conference call to review these results and the Company’s 2025 outlook is planned for 6:30 a.m. MT (8:30 a.m. ET), on Tuesday, February 25, 2025. Participation details are available in this release, and supplemental materials can be accessed on the Company’s website, www.civitasresources.com.
Key Fourth Quarter and Full Year 2024 Results
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
Net Income ($MM) |
|
$151 |
|
$839 |
|
Adjusted Net Income ($MM)(1) |
|
$171 |
|
$842 |
|
Operating Cash Flow ($MM) |
|
$858 |
|
$2,865 |
|
Adjusted EBITDAX ($MM)(1) |
|
$895 |
|
$3,652 |
|
Sales Volumes (MBoe/d) |
|
352 |
|
345 |
|
Oil Volumes (MBbl/d) |
|
164 |
|
159 |
|
Capital Expenditures ($MM) |
|
$278 |
|
$1,933 |
|
Adjusted Free Cash Flow ($MM)(1) |
|
$519 |
|
$1,266 |
|
(1) Non-GAAP financial measure; see attached reconciliation schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures. |
Management Quote
“The Civitas team performed well in 2024, establishing a successful operational track record in our first full year of operating in the Permian Basin and building on our strong momentum in the DJ Basin. Our high-quality assets and strong execution delivered in-line to better-than-expected sales volumes, capital expenditures, and operating costs. Along with enhancing our portfolio returns through sustainable capital efficiency gains and improved cycle times, we also expanded our asset base with attractive inventory adds in our core areas. All of these actions strengthened our business and our long-term free cash flow outlook,” said President and CEO Chris Doyle.
Fourth Quarter 2024 Financial and Operating Results
Total sales and oil volumes increased 1% and 3% sequentially to 352 MBoe/d and 164 MBbl/d, respectively. Sales volumes in the fourth quarter were split 50% Permian Basin and 50% DJ Basin, as the DJ Basin grew significantly following a high number of third quarter turn-in-lines. Supported by strong sales volumes and commodity price realizations, higher than expected revenues offset higher cash operating costs, primarily occurring in the Permian Basin, as a result of winterization efforts and increased workover and maintenance activities.
Capital expenditures of $278 million were consistent with plan and reflected continued efficiency gains, as the Company drilled, completed, and turned to sales 21, 34, and 4 net operated wells, respectively, in the Permian Basin, and 9, 3, and 28 net operated wells, respectively, in the DJ Basin. The Company’s average lateral length completed in the quarter was approximately 2.2 miles and 3.0 miles for the Permian Basin and DJ Basin, respectively.
Long-term debt was reduced by $350 million in the fourth quarter, while the Company also returned $205 million to its shareholders, including $48 million in dividends and $157 million in share repurchases. The Company repurchased nearly 3.5% of its outstanding shares in the fourth quarter.
2024 Financial Highlights
- Generated adjusted free cash flow(1) of nearly $1.3 billion, representing a yield of 29% (based on year-end 2024 market capitalization)
-
Delivered capital expenditures in the lower half of the Company’s original guidance, with total sales volumes approximately 5% above original guidance and oil volumes at the midpoint, adjusted for non-core DJ Basin divestments
- Cash operating costs, including lease operating, midstream, gathering, transportation, and processing, and cash G&A were below the midpoint of original guidance
-
Returned more than $920 million to shareholders throughout the year, including $494 million in dividends and $427 million of share repurchases
- Repurchased 7.3 million outstanding shares (approximately 7% of shares outstanding)
- Increased the Company’s revolving credit facility borrowing base by $400 million (to $3.4 billion) and its elected commitment by $350 million (to $2.2 billion)
- Received an upgrade on the Company’s long-term issuer rating from Fitch Ratings to BB+, along with an upgrade from S&P Global to a positive outlook
|
(1) Non-GAAP financial measure; see attached reconciliation schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures. |
2024 Operational Highlights
-
Established operational track record in the Permian Basin, delivering sustainably lower well costs through well design changes, accelerated drilling and completion cycle times, and scale benefits
- Midland Basin average two-mile well costs (drilling, completion and equipment) decreased from $850 per lateral foot to less than $725 per foot by the end of the year, a more than 15% improvement
- Implemented simulfrac operations late in 2024, increasing fluid throughput by more than 40% (barrels pumped per day)
- Achieved Permian Basin total recordable incident rate of 0.18 in the first year of operatorship
- Delineated Wolfcamp D development in the Midland Basin, with higher than anticipated productivity and lower costs, expanding the economic competitiveness of the Wolfcamp D across Civitas’ acreage position
- Successfully executed 13 four-mile laterals in the DJ Basin, the longest laterals ever drilled and completed in Colorado, representing the highest 180-day cumulative oil producing wells in the state and observing no per foot degradation in productivity
- Drilled, completed, and commenced production on the Company’s first “U-turn” wells in the Company’s northeast extension area of the DJ Basin, outperforming expected capital cost, cycle times, and production
- Reported 2024 proved reserves of 798 million barrels of oil equivalent, a 14% increase from year-end 2023, primarily driven by the acquisition of Vencer Energy
2024 Strategic Highlights
- Closed on the acquisition of certain oil and gas assets in the Midland Basin from Vencer Energy at the start of the year, materially expanding the Company’s Permian Basin position
- Extended the Company’s future development inventory through multiple land transactions and optimized development plans, adding approximately 100 gross locations in the Permian Basin and 250 gross locations in the DJ Basin
- Divested non-core DJ Basin assets for $215 million, which included 7 MBoe/d of production (~40% oil) and long-dated future development inventory in the Company’s northeast extension area
- Reduced regulatory risk in the DJ Basin through a multi-party regulatory agreement with the governor, industry colleagues, and environmental groups that defers future ballot measure and legislative initiatives through at least the end of 2027 (Senate Bill 24-229 and 24-230)
- Received approval from Colorado’s Energy and Carbon Management Commission of the Lowry Ranch Comprehensive Area Plan within the Watkins development area of the DJ Basin
Webcast / Conference Call Information
The Company plans to host a webcast and conference call at 6:30 a.m. MT (8:30 a.m. ET) on February 25, 2025. The dial-in number for the call is 888-510-2535, with passcode 4872770. A live webcast and replay of this event will be available on the Investor Relations section of the Company’s website at www.civitasresources.com.
About Civitas Resources, Inc.
Civitas Resources, Inc. is an independent exploration and production company focused on the acquisition, development and production of crude oil and liquids-rich natural gas from its premier assets in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico. Civitas’ proven business model to maximize shareholder returns is focused on four key strategic pillars: generating significant free cash flow, maintaining a premier balance sheet, returning capital to shareholders, and demonstrating ESG leadership. For more information about Civitas, please visit www.civitasresources.com.
|
Schedule 1: Consolidated Statements of Operations (in thousands, except for per share amounts, unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating net revenues: |
|
|
|
|
|
|
|
||||||||
|
Crude oil, natural gas, and NGL sales |
$ |
1,291,745 |
|
|
$ |
1,125,730 |
|
|
$ |
5,202,408 |
|
|
$ |
3,473,821 |
|
|
Other operating income |
|
1,121 |
|
|
|
1,045 |
|
|
|
4,400 |
|
|
|
5,419 |
|
|
Total operating net revenues |
|
1,292,866 |
|
|
|
1,126,775 |
|
|
|
5,206,808 |
|
|
|
3,479,240 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Lease operating expense |
|
173,005 |
|
|
|
109,560 |
|
|
|
577,837 |
|
|
|
301,288 |
|
|
Midstream operating expense |
|
11,313 |
|
|
|
10,039 |
|
|
|
48,038 |
|
|
|
45,080 |
|
|
Gathering, transportation, and processing |
|
97,894 |
|
|
|
80,880 |
|
|
|
377,678 |
|
|
|
290,645 |
|
|
Severance and ad valorem taxes |
|
86,307 |
|
|
|
88,293 |
|
|
|
377,388 |
|
|
|
276,535 |
|
|
Exploration |
|
587 |
|
|
|
632 |
|
|
|
14,322 |
|
|
|
2,178 |
|
|
Depreciation, depletion, and amortization |
|
544,568 |
|
|
|
416,634 |
|
|
|
2,056,427 |
|
|
|
1,171,192 |
|
|
Transaction costs |
|
682 |
|
|
|
24,251 |
|
|
|
31,419 |
|
|
|
84,328 |
|
|
General and administrative expense |
|
53,223 |
|
|
|
54,524 |
|
|
|
226,965 |
|
|
|
161,077 |
|
|
Other operating expense |
|
6,192 |
|
|
|
2,182 |
|
|
|
17,330 |
|
|
|
7,437 |
|
|
Total operating expenses |
|
973,771 |
|
|
|
786,995 |
|
|
|
3,727,404 |
|
|
|
2,339,760 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
|
Derivative gain (loss), net |
|
(11,437 |
) |
|
|
129,881 |
|
|
|
37,490 |
|
|
|
9,307 |
|
|
Interest expense |
|
(113,860 |
) |
|
|
(90,071 |
) |
|
|
(456,303 |
) |
|
|
(182,740 |
) |
|
Loss on property transactions, net |
|
(1,136 |
) |
|
|
— |
|
|
|
(2,566 |
) |
|
|
(254 |
) |
|
Other income (expense) |
|
7,099 |
|
|
|
(695 |
) |
|
|
24,670 |
|
|
|
33,661 |
|
|
Total other income (expense) |
|
(119,334 |
) |
|
|
39,115 |
|
|
|
(396,709 |
) |
|
|
(140,026 |
) |
|
Income from operations before income taxes |
|
199,761 |
|
|
|
378,895 |
|
|
|
1,082,695 |
|
|
|
999,454 |
|
|
Income tax expense |
|
(48,651 |
) |
|
|
(76,028 |
) |
|
|
(243,972 |
) |
|
|
(215,166 |
) |
|
Net income |
$ |
151,110 |
|
|
$ |
302,867 |
|
|
$ |
838,723 |
|
|
$ |
784,288 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per common share |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
1.57 |
|
|
$ |
3.23 |
|
|
$ |
8.48 |
|
|
$ |
9.09 |
|
|
Diluted |
$ |
1.57 |
|
|
$ |
3.20 |
|
|
$ |
8.46 |
|
|
$ |
9.02 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
96,254 |
|
|
|
93,774 |
|
|
|
98,865 |
|
|
|
86,240 |
|
|
Diluted |
|
96,394 |
|
|
|
94,519 |
|
|
|
99,176 |
|
|
|
86,988 |
|
|
Schedule 2: Consolidated Statement of Cash Flows (in thousands, unaudited) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
151,109 |
|
|
$ |
302,867 |
|
|
$ |
838,723 |
|
|
$ |
784,288 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion, and amortization |
|
544,568 |
|
|
|
416,634 |
|
|
|
2,056,427 |
|
|
|
1,171,192 |
|
|
Stock-based compensation |
|
12,150 |
|
|
|
9,354 |
|
|
|
48,272 |
|
|
|
34,931 |
|
|
Derivative (gain) loss, net |
|
11,437 |
|
|
|
(129,881 |
) |
|
|
(37,490 |
) |
|
|
(9,307 |
) |
|
Derivative cash settlement gain (loss), net |
|
12,147 |
|
|
|
(23,339 |
) |
|
|
6,435 |
|
|
|
(68,246 |
) |
|
Amortization of deferred financing costs and deferred acquisition consideration |
|
13,775 |
|
|
|
3,587 |
|
|
|
52,702 |
|
|
|
9,293 |
|
|
Loss on property transactions, net |
|
1,136 |
|
|
|
— |
|
|
|
2,566 |
|
|
|
254 |
|
|
Deferred income tax expense |
|
48,378 |
|
|
|
106,191 |
|
|
|
235,773 |
|
|
|
245,163 |
|
|
Other, net |
|
4,084 |
|
|
|
(330 |
) |
|
|
1,084 |
|
|
|
(740 |
) |
|
Changes in operating assets and liabilities, net |
|
|
|
|
|
|
|
||||||||
|
Accounts receivable, net |
|
(58,057 |
) |
|
|
760 |
|
|
|
(23,036 |
) |
|
|
(39,869 |
) |
|
Prepaid expenses and other |
|
(12,856 |
) |
|
|
19,141 |
|
|
|
(17,644 |
) |
|
|
19,987 |
|
|
Accounts payable, accrued expenses, and other liabilities |
|
130,199 |
|
|
|
138,204 |
|
|
|
(298,584 |
) |
|
|
91,814 |
|
|
Net cash provided by operating activities |
|
858,070 |
|
|
|
843,188 |
|
|
|
2,865,228 |
|
|
|
2,238,760 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
|
Acquisitions of businesses, net of cash acquired |
|
— |
|
|
|
(5,121 |
) |
|
|
(905,096 |
) |
|
|
(3,655,612 |
) |
|
Acquisitions of crude oil and natural gas properties |
|
(23,096 |
) |
|
|
(93,880 |
) |
|
|
(47,440 |
) |
|
|
(154,855 |
) |
|
Deposits for acquisitions |
|
— |
|
|
|
(161,250 |
) |
|
|
— |
|
|
|
(161,250 |
) |
|
Capital expenditures for drilling and completion activities and other fixed assets |
|
(292,319 |
) |
|
|
(570,269 |
) |
|
|
(1,924,426 |
) |
|
|
(1,352,388 |
) |
|
Proceeds from property transactions |
|
45,544 |
|
|
|
84,692 |
|
|
|
208,824 |
|
|
|
90,456 |
|
|
Purchases of carbon credits and renewable energy credits |
|
(1,826 |
) |
|
|
(287 |
) |
|
|
(5,744 |
) |
|
|
(6,151 |
) |
|
Other, net |
|
— |
|
|
|
(177 |
) |
|
|
2,000 |
|
|
|
(3,355 |
) |
|
Net cash used in investing activities |
|
(271,697 |
) |
|
|
(746,292 |
) |
|
|
(2,671,882 |
) |
|
|
(5,243,155 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
|
Proceeds from credit facility |
|
250,000 |
|
|
|
1,000,000 |
|
|
|
1,900,000 |
|
|
|
2,120,000 |
|
|
Payments to credit facility |
|
(600,000 |
) |
|
|
(900,000 |
) |
|
|
(2,200,000 |
) |
|
|
(1,370,000 |
) |
|
Proceeds from issuance of senior notes |
|
— |
|
|
|
987,500 |
|
|
|
— |
|
|
|
3,653,750 |
|
|
Payment of deferred financing costs and other |
|
(1,215 |
) |
|
|
(2,879 |
) |
|
|
(7,724 |
) |
|
|
(45,788 |
) |
|
Dividends paid |
|
(47,629 |
) |
|
|
(149,289 |
) |
|
|
(493,842 |
) |
|
|
(660,320 |
) |
|
Common stock repurchased and retired |
|
(157,444 |
) |
|
|
— |
|
|
|
(427,305 |
) |
|
|
(320,398 |
) |
|
Payment of employee tax withholdings in exchange for the return of common stock |
|
(396 |
) |
|
|
(114 |
) |
|
|
(12,037 |
) |
|
|
(13,416 |
) |
|
Other, net |
|
(938 |
) |
|
|
(727 |
) |
|
|
(3,427 |
) |
|
|
(752 |
) |
|
Net cash provided by (used in) financing activities |
|
(557,622 |
) |
|
|
934,491 |
|
|
|
(1,244,335 |
) |
|
|
3,363,076 |
|
|
Net change in cash, cash equivalents, and restricted cash |
|
28,751 |
|
|
|
1,031,387 |
|
|
|
(1,050,989 |
) |
|
|
358,681 |
|
|
Cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
|
||||||||
|
Beginning of period (1) |
|
47,075 |
|
|
|
95,428 |
|
|
|
1,126,815 |
|
|
|
768,134 |
|
|
End of period (1) |
$ |
75,826 |
|
|
$ |
1,126,815 |
|
|
$ |
75,826 |
|
|
$ |
1,126,815 |
|
|
(1) The balance includes $0.1 million of restricted cash consisting of funds for road maintenance and repairs that is presented in other noncurrent assets within our balance sheets for all periods presented prior to September 30, 2024. These funds were released to the Company during the third quarter of 2024. In addition, the December 31, 2023 balance includes $1.9 million of interest earned on cash held in escrow that is presented in deposits for acquisitions within our balance sheets for the period ended December 31, 2023. |
|
Schedule 3: Consolidated Balance Sheets (in thousands) |
|||||||
|
|
December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
75,826 |
|
|
$ |
1,124,797 |
|
|
Accounts receivable, net: |
|
|
|
||||
|
Crude oil and natural gas sales |
|
646,290 |
|
|
|
505,961 |
|
|
Joint interest and other |
|
125,047 |
|
|
|
247,228 |
|
|
Derivative assets |
|
66,517 |
|
|
|
35,192 |
|
|
Deposits for acquisitions |
|
— |
|
|
|
163,164 |
|
|
Prepaid expenses and other |
|
74,638 |
|
|
|
68,070 |
|
|
Total current assets |
|
988,318 |
|
|
|
2,144,412 |
|
|
Property and equipment (successful efforts method): |
|
|
|
||||
|
Proved properties |
|
16,897,070 |
|
|
|
12,738,568 |
|
|
Less: accumulated depreciation, depletion, and amortization |
|
(4,287,752 |
) |
|
|
(2,339,541 |
) |
|
Total proved properties, net |
|
12,609,318 |
|
|
|
10,399,027 |
|
|
Unproved properties |
|
630,727 |
|
|
|
821,939 |
|
|
Wells in progress |
|
505,556 |
|
|
|
536,858 |
|
|
Other property and equipment, net of accumulated depreciation of $9,382 in 2024 and $9,808 in 2023 |
|
48,757 |
|
|
|
62,392 |
|
|
Total property and equipment, net |
|
13,794,358 |
|
|
|
11,820,216 |
|
|
Derivative assets |
|
17,037 |
|
|
|
8,233 |
|
|
Other noncurrent assets |
|
144,407 |
|
|
|
124,458 |
|
|
Total assets |
$ |
14,944,120 |
|
|
$ |
14,097,319 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued expenses |
$ |
560,893 |
|
|
$ |
565,708 |
|
|
Production taxes payable |
|
322,976 |
|
|
|
421,045 |
|
|
Crude oil and natural gas revenue distribution payable |
|
702,130 |
|
|
|
766,123 |
|
|
Derivative liability |
|
22,178 |
|
|
|
18,096 |
|
|
Deferred acquisition consideration |
|
478,749 |
|
|
|
— |
|
|
Other liabilities |
|
118,168 |
|
|
|
80,915 |
|
|
Total current liabilities |
|
2,205,094 |
|
|
|
1,851,887 |
|
|
Long-term liabilities: |
|
|
|
||||
|
Debt, net |
|
4,493,531 |
|
|
|
4,785,732 |
|
|
Ad valorem taxes |
|
294,058 |
|
|
|
307,924 |
|
|
Derivative liability |
|
13,016 |
|
|
|
— |
|
|
Deferred income tax liabilities, net |
|
800,554 |
|
|
|
564,781 |
|
|
Asset retirement obligations |
|
399,002 |
|
|
|
305,716 |
|
|
Other long-term liabilities |
|
110,119 |
|
|
|
99,958 |
|
|
Total liabilities |
|
8,315,374 |
|
|
|
7,915,998 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Preferred stock, $.01 par value, 25,000,000 shares authorized, none outstanding |
|
— |
|
|
|
— |
|
|
Common stock, $.01 par value, 225,000,000 shares authorized, 93,933,857 and 93,774,901 issued and outstanding as of December 31, 2024 and 2023, respectively |
|
5,006 |
|
|
|
5,004 |
|
|
Additional paid-in capital |
|
5,095,298 |
|
|
|
4,964,450 |
|
|
Retained earnings |
|
1,528,442 |
|
|
|
1,211,867 |
|
|
Total stockholders’ equity |
|
6,628,746 |
|
|
|
6,181,321 |
|
|
Total liabilities and stockholders’ equity |
$ |
14,944,120 |
|
|
$ |
14,097,319 |
|
Schedule 4: Average Sales Volumes and Prices
(unaudited)
The following table presents crude oil, natural gas, and NGL sales volumes by operating region as well as consolidated average sales prices for the periods presented:
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||
|
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2024 |
|
December 31, 2023 |
||||
|
Average sales volumes per day |
|
|
|
|
|
|
|
||||
|
Crude oil (MBbl/d) |
|
|
|
|
|
|
|
||||
|
DJ Basin |
|
84 |
|
|
71 |
|
|
74 |
|
|
79 |
|
Permian Basin |
|
80 |
|
|
88 |
|
|
85 |
|
|
21 |
|
Total |
|
164 |
|
|
159 |
|
|
159 |
|
|
100 |
|
Natural gas (MMcf/d) |
|
|
|
|
|
|
|
||||
|
DJ Basin |
|
309 |
|
|
311 |
|
|
320 |
|
|
302 |
|
Permian Basin |
|
286 |
|
|
292 |
|
|
278 |
|
|
64 |
|
Total |
|
595 |
|
|
603 |
|
|
598 |
|
|
366 |
|
Natural gas liquids (MBbl/d) |
|
|
|
|
|
|
|
||||
|
DJ Basin |
|
41 |
|
|
37 |
|
|
38 |
|
|
39 |
|
Permian Basin |
|
49 |
|
|
52 |
|
|
48 |
|
|
12 |
|
Total |
|
90 |
|
|
89 |
|
|
86 |
|
|
51 |
|
Average sales volumes per day (MBoe/d) |
|
|
|
|
|
|
|
||||
|
DJ Basin |
|
176 |
|
|
159 |
|
|
165 |
|
|
169 |
|
Permian Basin |
|
176 |
|
|
189 |
|
|
179 |
|
|
44 |
|
Total(1) |
|
352 |
|
|
348 |
|
|
345 |
|
|
213 |
|
|
|
|
|
|
|
|
|
||||
|
Average sales prices (before derivatives): |
|
|
|||||||||
|
Crude oil (per Bbl) |
$ |
69.96 |
|
$ |
75.46 |
|
$ |
75.26 |
|
$ |
75.57 |
|
Natural gas (per Mcf) |
$ |
1.14 |
|
$ |
0.17 |
|
$ |
0.77 |
|
$ |
2.28 |
|
Natural gas liquids (per Bbl) |
$ |
21.47 |
|
$ |
19.38 |
|
$ |
21.09 |
|
$ |
21.35 |
|
Total (per Boe) |
$ |
39.90 |
|
$ |
39.70 |
|
$ |
41.24 |
|
$ |
44.86 |
|
____________________ |
|
(1) Items may not recalculate due to rounding. |
Schedule 5: Adjusted Net Income
(in thousands, except per share amounts, unaudited)
Adjusted Net Income is a supplemental non-GAAP financial measure that is used by management to present a more comparable, recurring profitability between periods. We believe that Adjusted Net Income provides external users of our consolidated financial statements with additional information to assist in their analysis of the Company. The Company defines Adjusted Net Income as net income after adjusting for (1) the impact of certain non-cash items and one-time transactions and correspondingly (2) the related tax effect in each period. Adjusted Net Income is not a measure of net income as determined by GAAP and should not be considered in isolation or as a substitute for net income, net cash provided by operating activities, or other profitability or liquidity measures prepared under GAAP.
The following table presents a reconciliation of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted Net Income.
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
|
Net income |
$ |
151,110 |
|
|
$ |
295,803 |
|
|
$ |
838,723 |
|
|
$ |
784,288 |
|
|
Adjustments to net income: |
|
|
|
|
|
|
|
||||||||
|
Unused commitments(1) |
|
1,232 |
|
|
|
1,117 |
|
|
|
1,730 |
|
|
|
5,013 |
|
|
Transaction costs |
|
682 |
|
|
|
140 |
|
|
|
31,419 |
|
|
|
84,328 |
|
|
Loss on property transactions, net |
|
1,136 |
|
|
|
— |
|
|
|
2,566 |
|
|
|
254 |
|
|
Derivative (gain) loss, net |
|
11,437 |
|
|
|
(151,029 |
) |
|
|
(37,490 |
) |
|
|
(9,307 |
) |
|
Derivative cash settlement gain (loss), net |
|
12,147 |
|
|
|
18,195 |
|
|
|
6,435 |
|
|
|
(68,246 |
) |
|
Total adjustments to net income before taxes |
|
26,634 |
|
|
|
(131,577 |
) |
|
|
4,660 |
|
|
|
12,042 |
|
|
Tax effect of adjustments |
|
(6,499 |
) |
|
|
31,578 |
|
|
|
(1,049 |
) |
|
|
(2,589 |
) |
|
Total adjustments to net income after taxes |
|
20,135 |
|
|
|
(99,999 |
) |
|
|
3,611 |
|
|
|
9,453 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Net Income |
$ |
171,245 |
|
|
$ |
195,804 |
|
|
$ |
842,334 |
|
|
$ |
793,741 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Net Income per diluted share |
$ |
1.78 |
|
|
$ |
1.99 |
|
|
$ |
8.49 |
|
|
$ |
9.12 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted weighted-average common shares outstanding |
|
96,394 |
|
|
|
98,224 |
|
|
|
99,176 |
|
|
|
86,988 |
|
|
1) Included as a portion of other operating expense in the consolidated statements of operations. |
Schedule 6: Adjusted EBITDAX
(in thousands, unaudited)
Adjusted EBITDAX is a supplemental non-GAAP financial measure that represents earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense, and other non-cash and non-recurring charges. Adjusted EBITDAX excludes certain items that we believe affect the comparability of operating results and can exclude items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. We present Adjusted EBITDAX because we believe it provides useful additional information to investors and analysts, as a performance measure, for analysis of our ability to internally generate funds for exploration, development, acquisitions, and to service debt. We are also subject to financial covenants under our revolving credit facility based on Adjusted EBITDAX ratios. In addition, Adjusted EBITDAX is widely used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the crude oil and natural gas exploration and production industry. Adjusted EBITDAX should not be considered in isolation or as a substitute for net income, net cash provided by operating activities, or other profitability or liquidity measures prepared under GAAP. Because Adjusted EBITDAX excludes some, but not all items that affect net income and may vary among companies, the Adjusted EBITDAX amounts presented may not be comparable to similar metrics of other companies.
The following table presents a reconciliation of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted EBITDAX:
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
|
Net Income |
$ |
151,110 |
|
|
$ |
295,803 |
|
|
$ |
838,723 |
|
|
$ |
784,288 |
|
|
Total adjustments to net income before taxes (from schedule 4) |
|
26,634 |
|
|
|
(131,577 |
) |
|
|
4,660 |
|
|
|
12,042 |
|
|
Exploration |
|
587 |
|
|
|
861 |
|
|
|
14,322 |
|
|
|
2,178 |
|
|
Depreciation, depletion, and amortization |
|
544,568 |
|
|
|
523,929 |
|
|
|
2,056,427 |
|
|
|
1,171,192 |
|
|
Stock-based compensation(1) |
|
12,150 |
|
|
|
12,661 |
|
|
|
48,272 |
|
|
|
34,931 |
|
|
Interest expense |
|
113,860 |
|
|
|
117,760 |
|
|
|
456,303 |
|
|
|
182,740 |
|
|
Interest income(2) |
|
(2,334 |
) |
|
|
(2,650 |
) |
|
|
(11,058 |
) |
|
|
(33,347 |
) |
|
Income tax expense |
|
48,651 |
|
|
|
93,309 |
|
|
|
243,972 |
|
|
|
215,166 |
|
|
Adjusted EBITDAX |
$ |
895,226 |
|
|
$ |
910,096 |
|
|
$ |
3,651,621 |
|
|
$ |
2,369,190 |
|
|
(1) Included as a portion of general and administrative expense in the consolidated statements of operations. |
|
(2) Included as a portion of other income in the consolidated statements of operations. |
Schedule 7: Adjusted Free Cash Flow
(in thousands, unaudited)
Adjusted Free Cash Flow is a supplemental non-GAAP financial measure that is calculated as net cash provided by operating activities before changes in operating assets and liabilities and less exploration and development of crude oil and natural gas properties, changes in working capital related to capital expenditures, and purchases of carbon credits. We believe that Adjusted Free Cash Flow provides additional information that may be useful to investors and analysts in evaluating our ability to generate cash from our existing crude oil and natural gas assets to fund future exploration and development activities and to return cash to stockholders. Adjusted Free Cash Flow is a supplemental measure of liquidity and should not be viewed as a substitute for cash flows from operations because it excludes certain required cash expenditures.
The following table presents a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP financial measure of Adjusted Free Cash Flow:
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||
|
Net cash provided by operating activities |
$ |
858,070 |
|
|
$ |
835,038 |
|
|
$ |
2,865,228 |
|
|
$ |
2,238,760 |
|
|
Add back: changes in operating assets and liabilities, net |
|
(59,285 |
) |
|
|
(28,270 |
) |
|
|
339,264 |
|
|
|
(71,932 |
) |
|
Cash flow from operations before changes in operating assets and liabilities |
|
798,785 |
|
|
|
806,768 |
|
|
|
3,204,492 |
|
|
|
2,166,828 |
|
|
Less: Cash paid for capital expenditures for drilling and completion activities and other fixed assets |
|
(292,319 |
) |
|
|
(541,410 |
) |
|
|
(1,924,426 |
) |
|
|
(1,352,388 |
) |
|
Less: Changes in working capital related to capital expenditures |
|
14,115 |
|
|
|
103,021 |
|
|
|
(8,208 |
) |
|
|
(12,349 |
) |
|
Capital expenditures |
|
(278,204 |
) |
|
|
(438,389 |
) |
|
|
(1,932,634 |
) |
|
|
(1,364,737 |
) |
|
Less: Purchases of carbon credits and renewable energy credits |
|
(1,826 |
) |
|
|
(2,032 |
) |
|
|
(5,744 |
) |
|
|
(6,151 |
) |
|
Adjusted Free Cash Flow |
$ |
518,755 |
|
|
$ |
366,347 |
|
|
$ |
1,266,114 |
|
|
$ |
795,940 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Capital expenditures by operating region |
|
|
|
|
|
|
|
||||||||
|
DJ Basin |
$ |
78,223 |
|
|
$ |
208,530 |
|
|
$ |
813,750 |
|
|
$ |
890,962 |
|
|
Permian Basin |
|
199,955 |
|
|
|
228,910 |
|
|
|
1,117,686 |
|
|
|
473,933 |
|
|
Other/Corporate |
|
25 |
|
|
|
951 |
|
|
|
1,199 |
|
|
|
(158 |
) |
|
Total |
$ |
278,203 |
|
|
$ |
438,391 |
|
|
$ |
1,932,635 |
|
|
$ |
1,364,737 |
|
Schedule 8: Estimated Proved Reserves
A summary of our changes in quantities of total proved reserves for the year ended December 31, 2024 is as follows:
|
Proved Reserve Roll-Forward |
|||
|
(in MBoe) |
Net Proved |
||
|
Balance as of December 31, 2023 |
697,799 |
|
|
|
Extensions, discoveries, and other additions |
101,817 |
|
|
|
Production |
(126,135 |
) |
|
|
Divestiture of reserves |
(22,929 |
) |
|
|
Removed from capital program |
(24,064 |
) |
|
|
Acquisition of reserves |
179,348 |
|
|
|
Revisions to previous estimates |
(8,112 |
) |
|
|
Balance as of December 31, 2024 |
797,724 |
|
|
The table below sets forth information regarding our estimated proved reserves by category and operating region as of December 31, 2024:
|
Operating Region/Area |
|
Crude Oil |
|
Natural Gas |
|
NGL (MBbls) |
|
Crude Oil |
|
Proved developed reserves: |
|
|
|
|
|
|
|
|
|
DJ Basin |
|
103,812 |
|
647,550 |
|
79,431 |
|
291,168 |
|
Permian Basin |
|
131,814 |
|
676,306 |
|
123,751 |
|
368,283 |
|
Total proved developed reserves |
|
235,626 |
|
1,323,856 |
|
203,182 |
|
659,451 |
|
Proved undeveloped reserves: |
|
|
|
|
|
|
|
|
|
DJ Basin |
|
34,045 |
|
99,276 |
|
11,883 |
|
62,474 |
|
Permian Basin |
|
35,690 |
|
116,386 |
|
20,711 |
|
75,799 |
|
Total proved undeveloped reserves |
|
69,735 |
|
215,662 |
|
32,594 |
|
138,273 |
|
Proved reserves: |
|
|
|
|
|
|
|
|
|
DJ Basin |
|
137,857 |
|
746,826 |
|
91,314 |
|
353,642 |
|
Permian Basin |
|
167,504 |
|
792,692 |
|
144,462 |
|
444,082 |
|
Total proved reserves(1) |
|
305,361 |
|
1,539,518 |
|
235,776 |
|
797,724 |
|
____________________ |
|
(1) Items may not recalculate due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224936014/en/
For further information, please contact:
Investor Relations:
Brad Whitmarsh, 832.736.8909, [email protected]
Mae Herrington, 832.913.5444, [email protected]
Media:
Rich Coolidge, [email protected]
KEYWORDS: Colorado United States North America
INDUSTRY KEYWORDS: Other Natural Resources Other Energy Environment Oil/Gas Energy Natural Resources
MEDIA:
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