Enhanced Capital Return Program
Civitas announced an enhanced capital return program including a buyback authorization exceeding 25% of their market cap.
Debt Reduction and Asset Sales
Civitas exceeded its asset sale target with $435 million in non-core DJ Basin asset sales, achieving a 4x multiple on 2026 cash flow. They are on track to hit a net debt target of $4.5 billion by year-end.
Operational Efficiency Improvements
Well costs were reduced by 7% in the Delaware, 5% in the Midland, and 3% in the DJ Basin. Drilling and completion efficiencies contributed to lower costs and faster cycle times.
Strong Financial Results
Civitas reported nearly $750 million in adjusted EBITDA and over $120 million in adjusted free cash flow for the quarter.
Significant Hedging Strategy
Civitas hedged approximately 60% of oil for the remainder of the year, doubling their normal levels to protect cash flow.