Civitas Resources, Inc. ( (CIVI) ) has released its Q3 earnings. Here is a breakdown of the information Civitas Resources, Inc. presented to its investors.
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Civitas Resources, Inc. is an independent exploration and production company specializing in crude oil and natural gas, with operations primarily in the Permian Basin and DJ Basin. The company is committed to maximizing shareholder returns through strategic initiatives focused on cash flow generation, balance sheet strength, capital returns, and ESG leadership.
In its third quarter of 2025, Civitas Resources reported strong financial and operational results, surpassing expectations with increased production and reduced cash operating expenses. The company announced a net income of $177 million, operating cash flow of $860 million, and adjusted free cash flow of $254 million. Notably, the company also announced a merger with SM Energy Company, leading to the cancellation of its scheduled earnings call.
Key financial highlights include a six percent increase in oil and total production compared to the previous quarter, with oil production reaching over 158 MBbl/d and total production at 336 MBoe/d. The company successfully divested two non-core DJ Basin assets and reduced net debt by $237 million while repurchasing $250 million of its stock. Civitas also reported a seven percent reduction in lease operating expenses per BOE and maintained strong financial liquidity with $2.2 billion available.
Operationally, Civitas achieved significant production growth in both the Permian and DJ Basins, with notable well performance and drilling efficiencies. The company completed several high-performing wells in the Delaware and Midland Basins, contributing to its robust production metrics.
Looking ahead, Civitas Resources is poised for continued growth and strategic development, supported by its strong financial position and operational efficiencies. The pending merger with SM Energy is expected to further enhance the company’s capabilities and market presence, although no new financial guidance will be provided until the merger’s completion.