Financial Data and Key Metrics Changes - Civitas reported free cash flow of approximately $190 million in Q2 2023, exceeding consensus expectations driven by strong production and lower expenses [27] - Production averaged about 173,000 BOE per day in Q2 2023, with a first half average of about 166,000 BOE per day, aligning with annual guidance [27][29] - Capital expenditures for the full year 2023 are expected to be around $1.3 billion at the midpoint, unchanged since the announcement of recent acquisitions [24][30] Business Line Data and Key Metrics Changes - The new Permian assets contributed to production averaging about 107,000 BOE per day in Q2, with expectations to maintain around 100,000 BOE per day in Q3 and exit the year at approximately 110,000 BOE per day [23][24] - The company plans to allocate about half of its capital to the southern area, including the Box Elder CAP and Lowry CAP, with two rigs expected to operate in this region [13][22] Market Data and Key Metrics Changes - The company noted a softening in certain service costs, including drilling and consumables, which may lead to potential savings in capital expenditures [25] - The oil mix in the Permian decreased from 54% in Q1 to 50% in Q2, with guidance indicating a range of 53% to 58% for the remainder of the year [55] Company Strategy and Development Direction - Civitas is focused on maintaining a strong balance sheet while executing a dividend plan and opportunistic share buybacks, with a target leverage ratio of less than 1x by 2024 [20][31] - The company is committed to divesting $300 million in non-core assets by mid-2024 to enhance its portfolio and reduce debt [20][37] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of recent acquisitions and the performance of the DJ business, highlighting the importance of a premier balance sheet [56] - The company anticipates that the divestment of non-core assets will strengthen its foundation and support future growth, even if commodity prices strengthen [48] Other Important Information - Civitas has returned over $800 million to shareholders year-to-date, maintaining one of the highest dividend yields in the industry alongside an active stock repurchase program [19] - The company has repurchased approximately $320 million in stock year-to-date, with $480 million remaining under the buyback authorization through year-end 2024 [31] Q&A Session Summary Question: Can you provide more details on the inventory in the Watkins area? - Management indicated there are a few hundred locations in total, with significant capital allocated to the southern area, including the Watkins area [35] Question: What is the status of the $300 million divestment target? - The divestment will include both production and inventory assets that do not compete for capital against higher-priority projects [36][37] Question: How is the credit facility being managed post-acquisition? - The company plans to prioritize paying down the credit facility quickly, leveraging excess free cash flow and proceeds from asset sales [42][44] Question: Will the shareholder return plan change after debt repayment? - Management confirmed that the current plan will remain in place, focusing on maintaining balance sheet strength while executing share repurchases [63]

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Financial Data and Key Metrics Changes - The company generated approximately $186 million in free cash flow during the first quarter, starting the year with $768 million in cash on the balance sheet [30] - The total dividend of $2.12 per share will be paid on June 29, with a variable dividend of $1.62 per share approved for the second quarter, in addition to a $0.50 fixed dividend [10][24] - The company reported production of 159,000 barrels of oil equivalent (BOE) per day, at the high end of guidance, with April production averaging approximately 165,000 BOE per day [54] Business Line Data and Key Metrics Changes - The company achieved a 17% improvement in spud-to-spud cycle times and a 7% increase in throughput from the completions team in the first quarter [23] - Capital investments in the first quarter were approximately $237 million, with a focus on maintaining a two-rig and two-frac crew operational plan [55] Market Data and Key Metrics Changes - The company maintains one of the strongest balance sheets in the industry, with about $560 million in cash against $400 million in total debt [10] - Operating costs decreased by 7% quarter-over-quarter, despite slightly higher operational costs due to cold weather [31] Company Strategy and Development Direction - The company is focused on free cash flow generation, maintaining a strong balance sheet, and returning significant cash to shareholders while leading on ESG initiatives [52] - The 2023 development plan is fully permitted, with significant progress expected on the 2024 plan [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute and deliver on its business plan, emphasizing continuous improvement and efficiency gains [29] - The company is committed to maintaining a disciplined approach to capital allocation, especially in light of the disconnect between service costs and commodity prices [5][91] Other Important Information - The company has made a small acquisition in-basin for a little over $30 million, enhancing its DJ position [16] - The company is actively working on a comprehensive pneumatic retrofit project aimed at reducing total scope one emissions by approximately 40% by the end of the year [32] Q&A Session All Questions and Answers Question: Can you talk about any discussions you've had with the state about potential changes to the permitting process? - Management discussed ongoing relationships with the COGCC and the administration, expressing confidence in the permitting process and the company's ability to meet new environmental targets [12][37] Question: What are your thoughts on the disconnect between commodity prices and service costs? - Management acknowledged the disconnect but indicated it would not materially impact capital allocation decisions, maintaining a strong balance sheet [58] Question: Can you provide insights on the recent acquisition and the current landscape for potential deals in the DJ Basin? - The company is focused on low-risk integration acquisitions and is actively looking for opportunities within the basin, emphasizing asset quality and returns [46][81]

The exercise price of the Company's warrants was in excess of the Company's stock price during the three months ended March 31, 2023 and 2022; therefore, they were excluded from the earnings per share calculation. NOTE 12 - INCOME TAXES Deferred tax assets and liabilities are measured by applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years related to cumulative temporary differences between the tax basis of assets and liabilities and ...

Civitas Resources, Inc. (NYSE:CIVI) Q4 2022 Earnings Conference Call February 23, 2023 10:00 AM ET Company Participants John Wren - Director, Investor Relations Chris Doyle - Chief Executive Officer Marianella Foschi - Chief Financial Officer Matt Owens - Chief Operating Officer Brian Cain - Chief Sustainability Officer Conference Call Participants Neal Dingmann - Truist Securities Tim Rezvan - KeyBanc Phillips Johnston - Capital One Noel Parks - Tuohy Brothers Nicholas Pope - Seaport Research Bill Dezellem ...

7 (a) The area identified by drilling and limited by fluid contacts, if any, and "Recompletion." The process of re-entering an existing wellbore that is either producing or not producing and completing new reservoirs in an attempt to establish or increase existing production. Item 1. Business • Demonstrate ESG Leadership. We have integrated ESG initiatives throughout our organization and strive to reduce and eliminate emissions while seeking to comply with all applicable air quality and other environmental ...

Civitas Resources, Inc. (NYSE:CIVI) Q3 2022 Earnings Conference Call November 1, 2022 10:00 AM ET Company Participants John Wren - IR Chris Doyle - President and CEO Marianella Foschi - CFO Matt Owens - COO Brian Cain - Chief Sustainability Officer Conference Call Participants Neal Dingmann - Truist Securities Leo Mariani - MKM Partners Nicholas Pope - Seaport Research Phillip Johnston - Capital One Noel Parks - Tuohy Brothers Bill Dezellem - Tieton Capital Operator Good morning. My name is Julianne and I w ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-35371 Civitas Resources, Inc. (Exact name of registrant as specified in its charter) Delaware 61 ...

Financial Data and Key Metrics Changes - The company generated GAAP net income of $468.8 million, adjusted EBITDAX of $739.2 million, and free cash flow of $436.6 million during Q2 2022 [12] - The total capital expenditure (CapEx) was approximately $240 million, with production exceeding internal targets despite inflationary pressures [8][12] - The company redeemed $100 million in senior notes, resulting in a net debt position of $400 million and approximately $440 million in cash [12][13] - The quarterly dividend was announced at $1.76 per share, representing a 30% quarter-over-quarter increase [13] Business Line Data and Key Metrics Changes - The company delivered an operational output of 175,000 MBoe per day, including 80,000 barrels of oil per day [8] - The oil marketing group optimized netbacks on oil production, achieving significant scale and geographical diversity [9][10] Market Data and Key Metrics Changes - The company updated its production guidance for 2022, accounting for year-to-date performance and a small acquisition, adding about 1,000 MBoe per day [16] - The oil differential guidance was decreased from $6 to between $4 and $5 per barrel [17] Company Strategy and Development Direction - The company focuses on maximizing free cash flow, maintaining a strong balance sheet, returning capital to shareholders, and leading in environmental, social, and governance (ESG) practices [6][14] - The management emphasizes disciplined growth and consolidation that enhances business performance rather than merely increasing size [7][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to optimize operations and integrate the five acquired companies, indicating that significant improvements are still to come [18][55] - The company is committed to being carbon-neutral and is investing in emissions reduction programs [50][51] Other Important Information - The company has 575 wells in the permitting pipeline, with 20% fully approved and 30% submitted and awaiting hearing dates [15] - The company is exploring additional benches and secondary targets within existing plays to optimize production [39] Q&A Session Summary Question: Discussion on capital allocation and share buybacks - Management indicated flexibility in capital allocation, considering share buybacks, special dividends, or acquisitions based on market conditions [20][22] Question: Permitting runway for efficient drilling and completions - Management aims to maintain a 12 to 18-month permit runway to optimize capital allocation [24][25] Question: Update on pending M&A deals - Management is in continuous dialogue regarding potential M&A opportunities but remains disciplined in their approach [28][30] Question: Production performance and future expectations - Management noted that production outperformed expectations due to early well performance and good execution, but guidance suggests moderation moving forward [34] Question: Crude marketing and transportation costs - Management highlighted improved realized prices from in-basin sales and plans to leverage market conditions for better pricing [36][37] Question: Exploration of additional benches and secondary targets - Management is considering opportunities for exploration within existing assets but is not focused on new formations at this time [39][40] Question: Integration of acquired companies and G&A reduction - Management reported an 18% quarter-over-quarter decrease in G&A, with ongoing efforts to optimize operations and reduce costs [42][44] Question: Current tax guidance for the remainder of the year - Management provided guidance of $75 million to $125 million in cash income taxes, assuming an average oil price of $100 per barrel for the rest of the year [61][62]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-35371 Civitas Resources, Inc. (Exact name of registrant as specified in its charter) Delaware 61-1630 ...