Civitas incorporates newly closed acquisition into 2022 guidance
Civitas Resources Inc., Denver, closed a deal July 5 to add non-operating interests in some of its operated Denver-Julesburg basin, Colorado, wells for $81.6 million in cash and has subsequently revised 2022 guidance to incorporate about 1,000 boe/d of additional production for the year.
Drilling and completion capital expenditures of $890-940 million are expected for full year 2022, reflecting 3 rigs and 2-3 frac crews. Full year production of 162,000-168,000 boe/d is expected, with 73,000-76,000 b/d oil production. Capital expenditure for the year was increased slightly at the midpoint due to cost inflation, but remains within the high end of original guidance.
Net volumes acquired from the transaction are expected to be about 2,000 boe/d over the next 12 months.
In second-quarter 2022, the company saw average daily sales volumes of 175,200 boe/d (46% crude oil, 30% natural gas, 24% natural gas liquids). Total capital expenditures were $238.6 million. Net income was $468.8 million. Net cash provided by operating activities was $722.2 million.
Total liquidity was $1.4 billion as of June 30, 2022, which consisted of $439.3 million of cash plus funds available under its credit facility.
Civitas drilled 40 gross (36.6 net) operated wells, completed 27 gross (20.3 net) operated wells, and turned to sales 27 gross (21.5 net) operated wells during the quarter.
Net crude oil, natural gas, and natural gas liquids revenue for second-quarter 2022 increased to $1.2 billion compared to $817.8 million in first-quarter 2022. The increase was a result of higher crude oil, natural gas, and natural gas liquids realized prices and an increase in sales volumes. Crude oil accounted for about 68% of total revenue for the quarter.
