Civitas Resources, Inc. reported significant financial performance improvements in its third quarter and the first nine months of 2024, driven by strategic acquisitions and increased production volumes. For the three months ended September 30, 2024, operating net revenues reached $1,272.0 million, a 23% increase from $1,035.9 million in the same period of 2023. For the nine months, revenues surged to $3,913.9 million, up 66% from $2,352.5 million year-over-year. This growth was primarily attributed to an 81% increase in total sales volumes, bolstered by acquisitions, despite an 8% decrease in crude oil equivalent pricing.

Net income for the third quarter was $295.8 million, compared to $139.7 million in the prior year, while net income for the nine months rose to $687.6 million from $481.4 million. Basic earnings per share for the third quarter increased to $3.02 from $1.57, and for the nine months, it rose to $6.91 from $5.75.

Civitas completed several strategic acquisitions, including the Vencer Energy, LLC acquisition for approximately $2.0 billion, which closed on January 2, 2024. This acquisition contributed approximately $186.9 million in revenue for the third quarter and $584.9 million for the nine months. The company also finalized the purchase of Hibernia Energy III, LLC and Tap Rock Resources II, with total considerations of approximately $2.2 billion and $2.5 billion, respectively.

Total operating expenses for the third quarter were $925.4 million, up from $656.7 million in the same quarter of 2023, reflecting increased costs associated with the expanded operations. For the nine months, operating expenses rose to $2,753.6 million from $1,552.8 million, driven by higher production costs and transaction expenses related to acquisitions.

Civitas reported a decrease in cash and cash equivalents to $47.1 million as of September 30, 2024, down from $1,124.8 million at the end of 2023. The company’s total assets increased to $15.0 billion, while total liabilities rose to $8.3 billion. The company maintained compliance with all covenants under its $4.0 billion Credit Facility, which has a maturity date in August 2028.

In terms of capital management, Civitas initiated a new stock repurchase program in July 2024, allowing for the repurchase of up to $500 million in shares, with $422.0 million remaining available as of September 30, 2024. The company also declared dividends totaling $444.0 million for the first nine months of 2024, reflecting a commitment to returning value to shareholders.