Civitas Resources aims to cut capital investments nearly 5% in 2025

Civitas Resources (CIVI) announced its 2025 outlook, including a new debt reduction goal for the year, as well as an enhanced asset portfolio and a recent bolt-on transaction in the Permian Basin. The company says that, in 2025, its goals are: Reducing capital investments nearly 5% year-over-year to a range of $1.8 to $1.9 billion;Delivering oil production between 150 and 155 thousand barrels per day (“MBbl/d”) on average; Generating free cash flow of approximately $1.1 billion (at $70 WTI), representing a peer-leading free cash flow yield of 22%; Sustaining a strong base dividend of $0.50 per share quarterly (a nearly 4% yield); Reducing year-end 2025 net debt below $4.5 billion, with the majority of free cash flow after the base dividend targeted for debt reduction; Expanding Permian Basin position with a $300 million bolt-on transaction that adds 19,000 net acres and approximately 130 future development locations in the Midland Basin; Executing on new divestment target of $300 million. Civitas President and CEO Chris Doyle said, “Our 2025 outlook is designed to maximize free cash flow, capitalizing on the sustainable efficiencies we have delivered in our first full year of operating in the Permian Basin and our strong track record of execution in the DJ Basin. We are maintaining a disciplined posture in 2025 in the face of market volatility, sustaining year-on-year activity levels, better level-loading investments through the year, and allocating more of our free cash flow to debt reduction. Along with our successful recent inventory capture, these actions are strengthening the durability of the business through the cycle and supporting our free cash flow delivery well into the future.”