Civitas Resources Announces Fourth Quarter and Full-Year 2022 Results
Announces $1 Billion Share Repurchase Authorization and Declares Fixed-plus-Variable Dividend to be Paid in March
2023 Plan Focused on Returning Cash to Shareholders
DENVER–(BUSINESS WIRE)–Civitas Resources, Inc. (NYSE: CIVI) (the “Company” or “Civitas”) today announced its fourth quarter and full-year 2022 financial and operating results, as well as its 2023 outlook. In addition, the Company announced plans to repurchase up to $1 billion of common stock, par value $0.01 per share (the “Common Stock”), effective through December 31, 2024. A conference call to discuss the results is planned for 8:00 a.m. MT (10:00 a.m. ET), February 23, 2023. Dial-in details can be found in this release. In addition, supplemental slides have been posted to the Company’s website, www.civitasresources.com.
Fourth Quarter 2022 Highlights
- Average daily sales of 169.4 thousand barrels of oil equivalent per day (“MBoe/d”), of which 45% was oil
- Total capital expenditures of $278.2 million
- GAAP net income of $281.9 million and Adjusted EBITDAX(1) of $505.1 million
- Net cash provided by operating activities of $512.2 million and free cash flow(1) of $230.7 million
- Fixed-plus-variable dividend, to be paid in March, increased to $2.15 per share, up approximately 10% sequentially from $1.95 per share in the prior quarter
- Total liquidity was $1.8 billion as of December 31, 2022, which consisted of $768.0 million of cash plus funds available under the Company’s credit facility
Peer-Leading Shareholder Return Framework Enhanced with $1 Billion Buyback Authorization
Civitas is committed to sustainably returning cash to its shareholders and its return philosophy and track record is one of the strongest in the industry today. Recent shareholder cash return highlights are below:
- The company repurchased $300 million worth of its outstanding Common Stock in January, 2023
- Today, the Company announced Board approval for the repurchase of up to $1 billion of additional Common Stock, effective through December 31, 2024
- In 2022, the Company paid out over $530 million in base and variable dividends
- In 2023, Civitas expects to distribute over $600 million in dividends, more than 60% of expected free cash flow(1) during the year, at current strip prices
(1) Non-GAAP financial measure; see attached reconciliation schedules at the end of this release.
Dividend to be Paid in March
The Company’s Board of Directors approved a dividend of $2.15 per share, payable on March 30, 2023 to shareholders of record as of March 15, 2023. The total reflects the combination of the quarterly base dividend of $0.50 per share and a quarterly variable dividend of $1.65 per share. Additional details regarding the calculation of the variable dividend can be found in the Company’s new investor presentation located on its website.
Civitas CEO Chris Doyle said, “Civitas reported outstanding results this quarter, with production coming in at the high end of our guidance range despite the cold temperatures we experienced in December. Recently, we’ve seen a meaningful pullback in commodity prices while service costs remain high given current utilization. As a result, we are choosing to moderate our capital spending in 2023 to maximize capital efficiency. With capital spending down year-over-year and production broadly flat, we expect to generate significant free cash flow in 2023 and return the vast majority of it to shareholders through dividends and the newly authorized share repurchase program.”
Fourth Quarter and Full-Year 2022 Financial and Operating Results
During the fourth quarter of 2022, the Company reported average daily sales of 169.4 MBoe/d, of which 45% was crude oil, 29% was natural gas, and 26% was natural gas liquids. The table below provides sales volumes, product mix, and average sales prices for the fourth quarter and full-year 2022 and 2021.
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
12/31/2022 |
|
12/31/2021 |
|
% Change |
|
12/31/2022 |
|
12/31/2021 |
|
% Change |
||||
|
Avg. Daily Sales Volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Crude oil (Bbls/d) |
|
|
75,912 |
|
|
48,916 |
|
55 % |
|
|
75,753 |
|
|
25,711 |
|
195 % |
|
Natural gas (Mcf/d) |
|
|
299,952 |
|
|
222,787 |
|
35 % |
|
|
308,160 |
|
|
100,722 |
|
206 % |
|
Natural gas liquids (Bbls/d) |
|
|
43,539 |
|
|
30,182 |
|
44 % |
|
|
42,922 |
|
|
13,517 |
|
218 % |
|
Crude oil equivalent (Boe/d) |
|
|
169,443 |
|
|
116,229 |
|
46 % |
|
|
170,035 |
|
|
56,015 |
|
204 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Product Mix |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Crude oil |
|
|
45 % |
|
|
42 % |
|
|
|
|
45 % |
|
|
46 % |
|
|
|
Natural gas |
|
|
29 % |
|
|
32 % |
|
|
|
|
30 % |
|
|
30 % |
|
|
|
Natural gas liquids |
|
|
26 % |
|
|
26 % |
|
|
|
|
25 % |
|
|
24 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Average Sales Prices (before derivatives): |
|
|
|
|
|
|
|
|
|
|
||||||
|
Crude oil (per Bbl) |
|
$ |
79.39 |
|
$ |
70.43 |
|
13 % |
|
$ |
91.70 |
|
$ |
65.41 |
|
40 % |
|
Natural gas (per Mcf) |
|
$ |
5.74 |
|
$ |
4.42 |
|
30 % |
|
$ |
6.15 |
|
$ |
3.84 |
|
60 % |
|
Natural gas liquids (per Bbl) |
|
$ |
25.04 |
|
$ |
36.56 |
|
(32) % |
|
$ |
35.76 |
|
$ |
34.68 |
|
3 % |
|
Crude oil equivalent (per Boe) |
|
$ |
52.16 |
|
$ |
47.61 |
|
10 % |
|
$ |
61.03 |
|
$ |
45.29 |
|
35 % |
Net crude oil, natural gas, and natural gas liquids revenue for the fourth quarter of 2022 was $814.3 million, compared to $1.0 billion for the third quarter of 2022. The decrease was primarily related to 12%, 22%, and 25% lower crude oil, natural gas, and natural gas liquids realized prices, respectively. Crude oil accounted for approximately 68% of total revenue for the quarter. Differentials for the Company’s crude oil production averaged approximately negative $3.30 per barrel in the fourth quarter.
Capital expenditures were $278.2 million and $988.5 million, which included $18.6 million and $74.4 million of land and midstream investments, for the fourth quarter and full-year of 2022, respectively. During the fourth quarter, the Company drilled 37 gross (30.1 net), completed 39 gross (33.5 net), and turned to sales 18 gross (17.5 net) operated wells.
Lease operating expense (“LOE”) for the fourth quarter of 2022, on a unit basis, increased to $3.02 per Boe from $2.78 per Boe in the third quarter of 2022. Full-year 2022 LOE was $2.74 per Boe.
The Company’s general and administrative (“G&A”) expenses for the fourth quarter were $40.8 million, which included $6.9 million in non-cash stock-based compensation and $6.2 million of other non-recurring G&A expenses. Recurring cash G&A, which excludes non-recurring and non-cash items, was $27.7 million for the fourth quarter of 2022. On a per unit basis, the Company’s recurring cash G&A increased 34% sequentially from $1.33 per Boe in the third quarter of 2022 to $1.78 per Boe in the fourth quarter of 2022.
Recurring cash G&A is a non-GAAP financial measures. Please see Schedule 7 at the end of this release for a reconciliation to the most comparable GAAP measure.
2022 Proved Reserves, Costs Incurred, and Finding and Development Costs
At December 31, 2022, the Company had proved reserves of 416.0 million Boe, a 5% increase from year-end 2021 reserves. The Company’s year-end 2022 proved reserves were comprised of 152.6 million barrels of crude oil, 867.5 billion cubic feet of natural gas, and 118.8 million barrels of natural gas liquids. 83% of the total proved reserves are proved developed. The Company’s proved reserves PV-10, utilizing Securities and Exchange Commission (“SEC”) pricing, was $9.8 billion. Civitas’ independent reserve engineering firm, Ryder Scott Company, LP., completed its estimate of the Company’s year-end 2022 proved reserves in accordance with SEC guidelines using pricing of $93.67 per barrel for crude oil and $6.36 per million British Thermal Units for natural gas. Please see Schedule 10 at the end of this release for information on SEC pricing and a reconciliation of PV-10 to the GAAP figure “Standardized Measure of Oil and Gas.”
A breakout of the Company’s costs incurred are provided in the table below.
|
(in thousands) |
Year Ended December 31, 2022 |
|
|
Acquisition(1) |
$ |
437,100 |
|
Development(2)(3) |
|
1,044,392 |
|
Exploration |
|
6,981 |
|
Total |
$ |
1,488,473 |
|
(1) Acquisition costs for unproved and proved properties were $16.8 million and $420.3 million, respectively. |
||
|
(2) Development costs include workover costs of $8.6 million charged to lease operating expense. |
||
|
(3) Includes amounts relating to asset retirement obligations of $64.7 million. |
||
Proved Reserve Roll-Forward
|
|
Net Reserves (MBoe) |
|
|
Balance as of December 31, 2021 |
397,690 |
|
|
Production |
(62,063 |
) |
|
Purchases of minerals in place |
27,269 |
|
|
Extensions, discoveries, and other additions |
27,904 |
|
|
Removed from capital program |
(228 |
) |
|
Revisions to previous estimates |
25,447 |
|
|
Balance as of December 31, 2022 |
416,019 |
|
2023 Outlook
2023 guidance is shown below.
|
2023 Guidance |
Low |
|
High |
|
D&C Capital Expenditures ($MM) |
$725 |
|
$825 |
|
Land, Midstream & Other Capital Expenditures ($MM) |
$75 |
|
$85 |
|
Total Production (MBoe/d) |
160 |
|
170 |
|
Oil Production (MBbl/d) |
72 |
|
77 |
|
% Liquids |
68% |
|
70% |
|
Realized Oil Price ($/Bbl relative to WTI) |
$(4.00) |
|
$(5.00) |
|
Lease Operating Expenses ($/Boe) |
$2.90 |
|
$3.20 |
|
Gathering, Transportation and Processing Expenses ($/Boe) |
$4.50 |
|
$5.00 |
|
Midstream Operating Expenses ($/Boe) |
$0.60 |
|
$0.70 |
|
Recurring Cash G&A Expenses ($MM) |
$90 |
|
$100 |
|
Production Taxes (% of revenue) |
8% |
|
9% |
|
Cash Income Taxes ($MM)(1) |
$75 |
|
$125 |
|
(1) At current strip prices |
|
||
Note: Guidance is forward-looking information that is subject to considerable change and numerous risks and uncertainties, many of which are beyond the Company’s control. See “Forward-Looking Statements” below.
Conference Call Information
The Company plans to host a conference call to discuss these results at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on February 23, 2023. A live webcast and replay will be available on the Investor Relations section of the Company’s website at www.civitasresources.com. Dial-in information for the conference call is included below.
|
Type |
Phone Number |
Passcode |
|
Live participant |
888-510-2535 |
4872770 |
|
Replay |
800-770-2030 |
4872770 |
About Civitas Resources, Inc.
Civitas Resources, Inc. is Colorado’s first carbon neutral oil and gas producer and is focused on developing and producing crude oil, natural gas, and natural gas liquids in Colorado’s Denver-Julesburg Basin. The Company is committed to pursuing compelling economic returns and cash flow while delivering best-in-class cost leadership and capital efficiency. Civitas is dedicated to safety, environmental responsibility, and implementing industry leading practices to create a positive local impact. For more information about Civitas, please visit www.civitasresources.com.
Share Repurchase Authorization Disclaimer
The repurchase authorization permits Civitas to make repurchases on a discretionary basis as determined by management, subject to market conditions, applicable legal requirements, available liquidity, compliance with the company’s debt agreements and other appropriate factors.
Acquisitions under this repurchase authorization are to be made through open market or privately negotiated transactions and may be made pursuant to plans entered into in accordance with Rule 10b5-1 and/or Rule 10b-18 of the Securities Exchange Act of 1934. This repurchase authorization does not obligate Civitas to acquire any particular amount of common stock or warrants, and may be modified, extended, suspended or discontinued at any time without prior notice. No assurance can be given that any particular amount of common stock or warrants will be repurchased.
Forward-Looking Statements and Cautionary Statements
Certain statements in this press release concerning future opportunities for Civitas, future financial performance and condition, guidance, and any other statements regarding Civitas’ future expectations, beliefs, plans, objectives, financial conditions, assumptions, or future events or performance that are not historical facts are “forward-looking” statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “probable,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “would,” “potential,” “may,” “might,” “anticipate,” “likely,” “plan,” “positioned,” “strategy,” and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the ultimate timing, outcome and results of integrating the legacy operations of Civitas; changes in capital markets and the ability of Civitas to finance operations in the manner expected; the effects of commodity prices; the risks of oil and gas activities; and the fact that operating costs and business disruption may be greater than expected. Additionally, risks and uncertainties that could cause actual results to differ materially from those anticipated also include: declines or volatility in the prices we receive for our oil, natural gas, and natural gas liquids; general economic conditions, whether internationally, nationally, or in the regional and local market areas in which we do business, including any future economic downturn, the impact of continued or further increased inflation, disruption in the financial markets, and the availability of credit on acceptable terms; the effects of disruption of our operations or excess supply of oil and natural gas due to world health events, including the COVID-19 pandemic and the actions by certain oil and natural gas producing countries, including Russia; the continuing effects of the COVID-19 pandemic, including any recurrence or the worsening thereof; the ability of our customers to meet their obligations to us; our access to capital on acceptable terms; our ability to generate sufficient cash flow from operations, borrowings, or other sources to enable us to fully develop our undeveloped acreage positions; the presence or recoverability of estimated oil and natural gas reserves and the actual future sales volume rates and associated costs; uncertainties associated with estimates of proved oil and gas reserves; the possibility that the industry may be subject to future local, state, and federal regulatory or legislative actions (including additional taxes and changes in environmental regulation and regulations addressing climate change); environmental risks; seasonal weather conditions; lease stipulations; drilling and operating risks, including the risks associated with the employment of horizontal drilling and completion techniques; our ability to acquire adequate supplies of water for drilling and completion operations; availability of oilfield equipment, services, and personnel; exploration and development risks; operational interruption of centralized oil and natural gas processing facilities; competition in the oil and natural gas industry; management’s ability to execute our plans to meet our goals; our ability to attract and retain key members of our senior management and key technical employees; our ability to maintain effective internal controls; access to adequate gathering systems and pipeline take-away capacity; our ability to secure adequate processing capacity for natural gas we produce, to secure adequate transportation for oil, natural gas, and natural gas liquids we produce, and to sell the oil, natural gas, and natural gas liquids at market prices; costs and other risks associated with perfecting title for mineral rights in some of our properties; political conditions in or affecting other producing countries, including conflicts in or relating to the Middle East, South America, and Russia (including the current events involving Russia and Ukraine), and other sustained military campaigns or acts of terrorism or sabotage; and other economic, competitive, governmental, legislative, regulatory, geopolitical, and technological factors that may negatively impact our businesses, operations, or pricing. Expectations regarding business outlook, including changes in revenue, pricing, capital expenditures, cash flow generation, strategies for our operations, oil and natural gas market conditions, legal, economic, and regulatory conditions, and environmental matters are only forecasts regarding these matters.
Additional information concerning other risk factors is also contained in Civitas’ most recently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other Securities and Exchange Commission filings. Civitas undertakes no duty to publicly update these statements except as required by law.
|
Schedule 1: Consolidated Statements of Operations and Comprehensive Income |
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|
(in thousands, expect for per share amounts, unaudited) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Operating net revenues: |
|
|
|
|
|
|
|
||||||||
|
Oil and natural gas sales |
$ |
814,273 |
|
|
$ |
510,457 |
|
|
$ |
3,791,398 |
|
|
$ |
930,614 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Lease operating expense |
|
47,027 |
|
|
|
23,742 |
|
|
|
169,986 |
|
|
|
52,391 |
|
|
Midstream operating expense |
|
9,549 |
|
|
|
6,112 |
|
|
|
31,944 |
|
|
|
17,426 |
|
|
Gathering, transportation, and processing |
|
73,070 |
|
|
|
31,714 |
|
|
|
287,474 |
|
|
|
64,507 |
|
|
Severance and ad valorem taxes |
|
71,498 |
|
|
|
41,491 |
|
|
|
305,701 |
|
|
|
65,113 |
|
|
Exploration |
|
545 |
|
|
|
2,781 |
|
|
|
6,981 |
|
|
|
7,937 |
|
|
Depreciation, depletion, and amortization |
|
214,997 |
|
|
|
137,498 |
|
|
|
816,446 |
|
|
|
226,931 |
|
|
Abandonment and impairment of unproved properties |
|
— |
|
|
|
55,045 |
|
|
|
17,975 |
|
|
|
57,260 |
|
|
Unused commitments |
|
941 |
|
|
|
— |
|
|
|
3,641 |
|
|
|
7,692 |
|
|
Bad debt expense (recovery) |
|
(943 |
) |
|
|
328 |
|
|
|
(950 |
) |
|
|
607 |
|
|
Merger transaction costs |
|
917 |
|
|
|
16,434 |
|
|
|
24,683 |
|
|
|
43,555 |
|
|
General and administrative (including $6,898, $9,462, $31,367, and $15,558, respectively, of stock-based compensation) |
|
40,795 |
|
|
|
32,013 |
|
|
|
143,477 |
|
|
|
65,132 |
|
|
Total operating expenses |
|
458,396 |
|
|
|
347,158 |
|
|
|
1,807,358 |
|
|
|
608,551 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
|
Derivative gain (loss) |
|
23,702 |
|
|
|
73,103 |
|
|
|
(335,160 |
) |
|
|
(60,510 |
) |
|
Interest expense |
|
(7,549 |
) |
|
|
(3,015 |
) |
|
|
(32,199 |
) |
|
|
(9,700 |
) |
|
Gain on property transactions, net |
|
21 |
|
|
|
981 |
|
|
|
15,880 |
|
|
|
1,932 |
|
|
Other income (expense) |
|
3,352 |
|
|
|
(3,177 |
) |
|
|
21,217 |
|
|
|
(2,006 |
) |
|
Total other income (expense) |
|
19,526 |
|
|
|
67,892 |
|
|
|
(330,262 |
) |
|
|
(70,284 |
) |
|
Income from operations before income taxes |
|
375,403 |
|
|
|
231,191 |
|
|
|
1,653,778 |
|
|
|
251,779 |
|
|
Income tax expense |
|
(93,535 |
) |
|
|
(67,491 |
) |
|
|
(405,698 |
) |
|
|
(72,858 |
) |
|
Net income |
$ |
281,868 |
|
|
$ |
163,700 |
|
|
$ |
1,248,080 |
|
|
$ |
178,921 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Comprehensive income |
$ |
281,868 |
|
|
$ |
163,700 |
|
|
$ |
1,248,080 |
|
|
$ |
178,921 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income per common share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
3.31 |
|
|
$ |
2.49 |
|
|
$ |
14.68 |
|
|
$ |
4.82 |
|
|
Diluted |
$ |
3.29 |
|
|
$ |
2.46 |
|
|
|
14.58 |
|
|
$ |
4.74 |
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
85,114 |
|
|
|
65,851 |
|
|
|
85,005 |
|
|
|
37,155 |
|
|
Diluted |
|
85,750 |
|
|
|
66,543 |
|
|
|
85,604 |
|
|
|
37,746 |
|
|
Schedule 2: Consolidated Statement of Cash Flows |
|||||||||||||||
|
(in thousands, unaudited) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
281,868 |
|
|
$ |
163,700 |
|
|
$ |
1,248,080 |
|
|
$ |
178,921 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion, and amortization |
|
214,997 |
|
|
|
137,498 |
|
|
|
816,446 |
|
|
|
226,931 |
|
|
Deferred income tax expense |
|
97,736 |
|
|
|
67,490 |
|
|
|
337,502 |
|
|
|
72,858 |
|
|
Abandonment and impairment of unproved properties |
|
— |
|
|
|
55,045 |
|
|
|
17,975 |
|
|
|
57,260 |
|
|
Stock-based compensation |
|
6,898 |
|
|
|
9,462 |
|
|
|
31,367 |
|
|
|
15,558 |
|
|
Amortization of deferred financing costs |
|
1,145 |
|
|
|
927 |
|
|
|
4,464 |
|
|
|
1,890 |
|
|
Derivative (gain) loss |
|
(23,702 |
) |
|
|
(73,103 |
) |
|
|
335,160 |
|
|
|
60,510 |
|
|
Derivative cash settlement loss |
|
(84,682 |
) |
|
|
(225,378 |
) |
|
|
(576,802 |
) |
|
|
(275,914 |
) |
|
Gain on property transactions, net |
|
(21 |
) |
|
|
(981 |
) |
|
|
(15,880 |
) |
|
|
(1,932 |
) |
|
Other |
|
2,386 |
|
|
|
76 |
|
|
|
2,588 |
|
|
|
90 |
|
|
Changes in current assets and liabilities: |
|
|
|
|
|
|
|
||||||||
|
Accounts receivable, net |
|
(39,968 |
) |
|
|
(83,831 |
) |
|
|
(941 |
) |
|
|
(100,881 |
) |
|
Prepaid expenses and other assets |
|
(31,926 |
) |
|
|
(5,582 |
) |
|
|
(34,025 |
) |
|
|
(3,338 |
) |
|
Accounts payable and accrued liabilities |
|
93,901 |
|
|
|
38,006 |
|
|
|
335,563 |
|
|
|
47,510 |
|
|
Settlement of asset retirement obligations |
|
(6,454 |
) |
|
|
(973 |
) |
|
|
(24,456 |
) |
|
|
(4,864 |
) |
|
Net cash provided by operating activities |
|
512,178 |
|
|
|
82,356 |
|
|
|
2,477,041 |
|
|
|
274,599 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
|
Acquisition of oil and natural gas properties |
|
(3,154 |
) |
|
|
(630 |
) |
|
|
(377,923 |
) |
|
|
(1,250 |
) |
|
Cash acquired |
|
— |
|
|
|
173,865 |
|
|
|
44,310 |
|
|
|
223,692 |
|
|
Exploration and development of oil and natural gas properties |
|
(258,138 |
) |
|
|
(47,293 |
) |
|
|
(967,096 |
) |
|
|
(151,500 |
) |
|
Proceeds from sale of oil and natural gas properties |
|
2,355 |
|
|
|
— |
|
|
|
2,355 |
|
|
|
— |
|
|
Purchases of carbon offsets |
|
(102 |
) |
|
|
— |
|
|
|
(7,298 |
) |
|
|
— |
|
|
Proceeds from (additions to) other property and equipment |
|
(482 |
) |
|
|
2,465 |
|
|
|
(579 |
) |
|
|
2,393 |
|
|
Other |
|
10 |
|
|
|
8 |
|
|
|
136 |
|
|
|
212 |
|
|
Net cash provided by (used in) investing activities |
|
(259,511 |
) |
|
|
128,415 |
|
|
|
(1,306,095 |
) |
|
|
73,547 |
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
|
Proceeds from credit facility |
|
— |
|
|
|
— |
|
|
|
100,000 |
|
|
|
155,000 |
|
|
Payments to credit facility |
|
— |
|
|
|
(340,000 |
) |
|
|
(100,000 |
) |
|
|
(589,000 |
) |
|
Proceeds from issuance of senior notes |
|
— |
|
|
|
400,000 |
|
|
|
— |
|
|
|
400,000 |
|
|
Redemption of senior notes |
|
— |
|
|
|
— |
|
|
|
(100,000 |
) |
|
|
— |
|
|
Proceeds from exercise of stock options |
|
76 |
|
|
|
869 |
|
|
|
308 |
|
|
|
1,585 |
|
|
Dividends paid |
|
(166,331 |
) |
|
|
(39,182 |
) |
|
|
(536,922 |
) |
|
|
(60,780 |
) |
|
Payment of employee tax withholdings in exchange for the return of common stock |
|
(518 |
) |
|
|
(3,037 |
) |
|
|
(19,580 |
) |
|
|
(5,927 |
) |
|
Deferred financing costs |
|
— |
|
|
|
(15,377 |
) |
|
|
(1,174 |
) |
|
|
(19,292 |
) |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
Net cash provided by (used in) financing activities |
|
(166,773 |
) |
|
|
3,273 |
|
|
|
(657,368 |
) |
|
|
(118,435 |
) |
|
Net change in cash, cash equivalents, and restricted cash |
|
85,894 |
|
|
|
214,044 |
|
|
|
513,578 |
|
|
|
229,711 |
|
|
Cash, cash equivalents, and restricted cash: |
|
|
|
|
|
|
|
||||||||
|
Beginning of period |
|
682,240 |
|
|
|
40,512 |
|
|
|
254,556 |
|
|
|
24,845 |
|
|
End of period |
$ |
768,134 |
|
|
$ |
254,556 |
|
|
$ |
768,134 |
|
|
$ |
254,556 |
|
|
Schedule 3: Consolidated Balance Sheets |
|||||||
|
(in thousands, unaudited) |
|||||||
|
|
As of December 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
768,032 |
|
|
$ |
254,454 |
|
|
Accounts receivable, net: |
|
|
|
||||
|
Oil and natural gas sales |
|
343,500 |
|
|
|
362,262 |
|
|
Joint interest and other |
|
135,816 |
|
|
|
66,390 |
|
|
Derivative assets |
|
2,490 |
|
|
|
3,393 |
|
|
Prepaid income taxes |
|
29,604 |
|
|
|
— |
|
|
Prepaid expenses and other |
|
48,988 |
|
|
|
33,438 |
|
|
Total current assets |
|
1,328,430 |
|
|
|
719,937 |
|
|
Property and equipment (successful efforts method): |
|
|
|
||||
|
Proved properties |
|
6,774,635 |
|
|
|
5,457,213 |
|
|
Less: accumulated depreciation, depletion, and amortization |
|
(1,214,484 |
) |
|
|
(430,201 |
) |
|
Total proved properties, net |
|
5,560,151 |
|
|
|
5,027,012 |
|
|
Unproved properties |
|
593,971 |
|
|
|
688,895 |
|
|
Wells in progress |
|
407,351 |
|
|
|
177,296 |
|
|
Other property and equipment, net of accumulated depreciation of $7,329 in 2022 and $4,742 in 2021 |
|
49,632 |
|
|
|
51,639 |
|
|
Total property and equipment, net |
|
6,611,105 |
|
|
|
5,944,842 |
|
|
Long-term derivative assets |
|
794 |
|
|
|
— |
|
|
Right-of-use assets |
|
24,125 |
|
|
|
39,885 |
|
|
Deferred income tax assets |
|
— |
|
|
|
22,284 |
|
|
Other noncurrent assets |
|
6,945 |
|
|
|
14,085 |
|
|
Total assets |
$ |
7,971,399 |
|
|
$ |
6,741,033 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued expenses |
$ |
295,297 |
|
|
$ |
246,188 |
|
|
Production taxes payable |
|
258,932 |
|
|
|
144,408 |
|
|
Oil and natural gas revenue distribution payable |
|
538,343 |
|
|
|
466,233 |
|
|
Lease liability |
|
13,464 |
|
|
|
18,873 |
|
|
Derivative liability |
|
46,334 |
|
|
|
219,804 |
|
|
Asset retirement obligations |
|
25,557 |
|
|
|
24,000 |
|
|
Total current liabilities |
|
1,177,927 |
|
|
|
1,119,506 |
|
|
Long-term liabilities: |
|
|
|
||||
|
Senior notes |
|
393,293 |
|
|
|
491,710 |
|
|
Lease liability |
|
11,324 |
|
|
|
21,398 |
|
|
Ad valorem taxes |
|
412,650 |
|
|
|
232,147 |
|
|
Derivative liability |
|
17,199 |
|
|
|
19,959 |
|
|
Deferred income tax liabilities |
|
319,618 |
|
|
|
— |
|
|
Asset retirement obligations |
|
265,469 |
|
|
|
201,315 |
|
|
Total liabilities |
|
2,597,480 |
|
|
|
2,086,035 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Preferred stock, $.01 par value, 25,000,000 shares authorized, none outstanding |
|
— |
|
|
|
— |
|
|
Common stock, $.01 par value, 225,000,000 shares authorized, 85,120,287 and 84,572,846 issued and outstanding as of December 31, 2022 and 2021, respectively |
|
4,918 |
|
|
|
4,912 |
|
|
Additional paid-in capital |
|
4,211,197 |
|
|
|
4,199,108 |
|
|
Retained earnings |
|
1,157,804 |
|
|
|
450,978 |
|
|
Total stockholders’ equity |
|
5,373,919 |
|
|
|
4,654,998 |
|
|
Total liabilities and stockholders’ equity |
$ |
7,971,399 |
|
|
$ |
6,741,033 |
|
Contacts
Investor Relations:
John Wren, ir@civiresources.com
Media:
Rich Coolidge, info@civiresources.com
