DENVER — February 24, 2025 - Civitas Resources, Inc. (NYSE: CIVI) (the "Company" or "Civitas") today reported its fourth quarter and full year 2024 financial and operating results. A webcast and conference call to review these results and the Company’s 2025 outlook is planned for 6:30 a.m. MT (8:30 a.m. ET), on Tuesday, February 25, 2025. Participation details are available in this release, and supplemental materials can be accessed on the Company's website, www.civitasresources.com.

(1) Non-GAAP financial measure; see attached reconciliation schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures.

“The Civitas team performed well in 2024, establishing a successful operational track record in our first full year of operating in the Permian Basin and building on our strong momentum in the DJ Basin. Our high-quality assets and strong execution delivered in-line to better-than-expected sales volumes, capital expenditures, and operating costs. Along with enhancing our portfolio returns through sustainable capital efficiency gains and improved cycle times, we also expanded our asset base with attractive inventory adds in our core areas. All of these actions strengthened our business and our long-term free cash flow outlook,” said President and CEO Chris Doyle.

Total sales and oil volumes increased 1% and 3% sequentially to 352 MBoe/d and 164 MBbl/d, respectively. Sales volumes in the fourth quarter were split 50% Permian Basin and 50% DJ Basin, as the DJ Basin grew significantly following a high number of third quarter turn-in-lines. Supported by strong sales volumes and commodity price realizations, higher than expected revenues offset higher cash operating costs, primarily occurring in the Permian Basin, as a result of winterization efforts and increased workover and maintenance activities.

Capital expenditures of $278 million were consistent with plan and reflected continued efficiency gains, as the Company drilled, completed, and turned to sales 21, 34, and 4 net operated wells, respectively, in the Permian Basin, and 9, 3, and 28 net operated wells, respectively, in the DJ Basin. The Company's average lateral length completed in the quarter was approximately 2.2 miles and 3.0 miles for the Permian Basin and DJ Basin, respectively.

Long-term debt was reduced by $350 million in the fourth quarter, while the Company also returned $205 million to its shareholders, including $48 million in dividends and $157 million in share repurchases. The Company repurchased nearly 3.5% of its outstanding shares in the fourth quarter.

•Generated adjusted free cash flow(1) of nearly $1.3 billion, representing a yield of 29% (based on year-end 2024 market capitalization)

•Delivered capital expenditures in the lower half of the Company's original guidance, with total sales volumes approximately 5% above original guidance and oil volumes at the midpoint, adjusted for non-core DJ Basin divestments

◦Cash operating costs, including lease operating, midstream, gathering, transportation, and processing, and cash G&A were below the midpoint of original guidance

•Returned more than $920 million to shareholders throughout the year, including $494 million in dividends and $427 million of share repurchases

◦Repurchased 7.3 million outstanding shares (approximately 7% of shares outstanding)

•Increased the Company’s revolving credit facility borrowing base by $400 million (to $3.4 billion) and its elected commitment by $350 million (to $2.2 billion)

•Received an upgrade on the Company's long-term issuer rating from Fitch Ratings to BB+, along with an upgrade from S&P Global to a positive outlook

(1) Non-GAAP financial measure; see attached reconciliation schedules at the end of this release for reconciliations to the most directly comparable GAAP financial measures.

•Established operational track record in the Permian Basin, delivering sustainably lower well costs through well design changes, accelerated drilling and completion cycle times, and scale benefits

◦Midland Basin average two-mile well costs (drilling, completion and equipment) decreased from $850 per lateral foot to less than $725 per foot by the end of the year, a more than 15% improvement

◦Implemented simulfrac operations late in 2024, increasing fluid throughput by more than 40% (barrels pumped per day)

◦Achieved Permian Basin total recordable incident rate of 0.18 in the first year of operatorship

•Delineated Wolfcamp D development in the Midland Basin, with higher than anticipated productivity and lower costs, expanding the economic competitiveness of the Wolfcamp D across Civitas' acreage position

•Successfully executed 13 four-mile laterals in the DJ Basin, the longest laterals ever drilled and completed in Colorado, representing the highest 180-day cumulative oil producing wells in the state and observing no per foot degradation in productivity

•Drilled, completed, and commenced production on the Company's first "U-turn" wells in the Company's northeast extension area of the DJ Basin, outperforming expected capital cost, cycle times, and production

•Reported 2024 proved reserves of 798 million barrels of oil equivalent, a 14% increase from year-end 2023, primarily driven by the acquisition of Vencer Energy

•Closed on the acquisition of certain oil and gas assets in the Midland Basin from Vencer Energy at the start of the year, materially expanding the Company’s Permian Basin position

•Extended the Company's future development inventory through multiple land transactions and optimized development plans, adding approximately 100 gross locations in the Permian Basin and 250 gross locations in the DJ Basin

•Divested non-core DJ Basin assets for $215 million, which included 7 MBoe/d of production (~40% oil) and long-dated future development inventory in the Company's northeast extension area

•Reduced regulatory risk in the DJ Basin through a multi-party regulatory agreement with the governor, industry colleagues, and environmental groups that defers future ballot measure and legislative initiatives through at least the end of 2027 (Senate Bill 24-229 and 24-230)

•Received approval from Colorado’s Energy and Carbon Management Commission of the Lowry Ranch Comprehensive Area Plan within the Watkins development area of the DJ Basin

The Company plans to host a webcast and conference call at 6:30 a.m. MT (8:30 a.m. ET) on February 25, 2025. The dial-in number for the call is 888-510-2535, with passcode 4872770. A live webcast and replay of this event will be available on the Investor Relations section of the Company’s website at www.civitasresources.com.

Civitas Resources, Inc. is an independent exploration and production company focused on the acquisition, development and production of crude oil and liquids-rich natural gas from its premier assets in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico. Civitas’ proven business model to maximize shareholder returns is focused on four key strategic pillars: generating significant free cash flow, maintaining a premier balance sheet, returning capital to shareholders, and demonstrating ESG leadership. For more information about Civitas, please visit www.civitasresources.com.

Investor Relations:

Brad Whitmarsh, 832.736.8909, bwhitmarsh@civiresources.com

Mae Herrington, 832.913.5444, mherrington@civiresources.com

Media:

Rich Coolidge, info@civiresources.com

Schedule 1: Consolidated Statements of Operations

Schedule 2: Consolidated Statement of Cash Flows

Schedule 3: Consolidated Balance Sheets

Schedule 4: Average Sales Volumes and Prices

The following table presents crude oil, natural gas, and NGL sales volumes by operating region as well as consolidated average sales prices for the periods presented:

			Three Months Ended												Twelve Months Ended
			December 31, 2024						September 30, 2024						December 31, 2024						December 31, 2023
Average sales volumes per day
Crude oil (MBbl/d)
DJ Basin			84						71						74						79
Permian Basin			80						88						85						21
Total			164						159						159						100
Natural gas (MMcf/d)
DJ Basin			309						311						320						302
Permian Basin			286						292						278						64
Total			595						603						598						366
Natural gas liquids (MBbl/d)
DJ Basin			41						37						38						39
Permian Basin			49						52						48						12
Total			90						89						86						51
Average sales volumes per day (MBoe/d)
DJ Basin			176						159						165						169
Permian Basin			176						189						179						44
Total(1)			352						348						345						213
Average sales prices (before derivatives):
Crude oil (per Bbl)			$	69.96					$	75.46					$	75.26					$	75.57
Natural gas (per Mcf)			$	1.14					$	0.17					$	0.77					$	2.28
Natural gas liquids (per Bbl)			$	21.47					$	19.38					$	21.09					$	21.35
Total (per Boe)			$	39.90					$	39.70					$	41.24					$	44.86

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(1) Items may not recalculate due to rounding.

Schedule 5: Adjusted Net Income

Adjusted Net Income is a supplemental non-GAAP financial measure that is used by management to present a more comparable, recurring profitability between periods. We believe that Adjusted Net Income provides external users of our consolidated financial statements with additional information to assist in their analysis of the Company. The Company defines Adjusted Net Income as net income after adjusting for (1) the impact of certain non-cash items and one-time transactions and correspondingly (2) the related tax effect in each period. Adjusted Net Income is not a measure of net income as determined by GAAP and should not be considered in isolation or as a substitute for net income, net cash provided by operating activities, or other profitability or liquidity measures prepared under GAAP.

The following table presents a reconciliation of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted Net Income.

			Three Months Ended												Twelve Months Ended
			December 31, 2024						September 30, 2024						December 31, 2024						December 31, 2023
Net income			$	151,110					$	295,803					$	838,723					$	784,288
Adjustments to net income:
Unused commitments(1)			1,232						1,117						1,730						5,013
Transaction costs			682						140						31,419						84,328
Loss on property transactions, net			1,136						—						2,566						254
Derivative (gain) loss, net			11,437						(151,029)						(37,490)						(9,307)
Derivative cash settlement gain (loss), net			12,147						18,195						6,435						(68,246)
Total adjustments to net income before taxes			26,634						(131,577)						4,660						12,042
Tax effect of adjustments			(6,499)						31,578						(1,049)						(2,589)
Total adjustments to net income after taxes			20,135						(99,999)						3,611						9,453
Adjusted Net Income			$	171,245					$	195,804					$	842,334					$	793,741
Adjusted Net Income per diluted share			$	1.78					$	1.99					$	8.49					$	9.12
Diluted weighted-average common shares outstanding			96,394						98,224						99,176						86,988
(1) Included as a portion of other operating expense in the consolidated statements of operations.

Schedule 6: Adjusted EBITDAX

Adjusted EBITDAX is a supplemental non-GAAP financial measure that represents earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense, and other non-cash and non-recurring charges. Adjusted EBITDAX excludes certain items that we believe affect the comparability of operating results and can exclude items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. We present Adjusted EBITDAX because we believe it provides useful additional information to investors and analysts, as a performance measure, for analysis of our ability to internally generate funds for exploration, development, acquisitions, and to service debt. We are also subject to financial covenants under our revolving credit facility based on Adjusted EBITDAX ratios. In addition, Adjusted EBITDAX is widely used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the crude oil and natural gas exploration and production industry. Adjusted EBITDAX should not be considered in isolation or as a substitute for net income, net cash provided by operating activities, or other profitability or liquidity measures prepared under GAAP. Because Adjusted EBITDAX excludes some, but not all items that affect net income and may vary among companies, the Adjusted EBITDAX amounts presented may not be comparable to similar metrics of other companies.

The following table presents a reconciliation of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted EBITDAX:

Schedule 7: Adjusted Free Cash Flow

Adjusted Free Cash Flow is a supplemental non-GAAP financial measure that is calculated as net cash provided by operating activities before changes in operating assets and liabilities and less exploration and development of crude oil and natural gas properties, changes in working capital related to capital expenditures, and purchases of carbon credits. We believe that Adjusted Free Cash Flow provides additional information that may be useful to investors and analysts in evaluating our ability to generate cash from our existing crude oil and natural gas assets to fund future exploration and development activities and to return cash to stockholders. Adjusted Free Cash Flow is a supplemental measure of liquidity and should not be viewed as a substitute for cash flows from operations because it excludes certain required cash expenditures.

The following table presents a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP financial measure of Adjusted Free Cash Flow:

Schedule 8: Estimated Proved Reserves

A summary of our changes in quantities of total proved reserves for the year ended December 31, 2024 is as follows:

The table below sets forth information regarding our estimated proved reserves by category and operating region as of December 31, 2024:

Operating Region/Area						Crude Oil (MBbls)						Natural Gas (MMcf)						NGL (MBbls)						Crude Oil Equivalent (MBoe)
Proved developed reserves:
DJ Basin						103,812						647,550						79,431						291,168
Permian Basin						131,814						676,306						123,751						368,283
Total proved developed reserves						235,626						1,323,856						203,182						659,451
Proved undeveloped reserves:
DJ Basin						34,045						99,276						11,883						62,474
Permian Basin						35,690						116,386						20,711						75,799
Total proved undeveloped reserves						69,735						215,662						32,594						138,273
Proved reserves:
DJ Basin						137,857						746,826						91,314						353,642
Permian Basin						167,504						792,692						144,462						444,082
Total proved reserves(1)						305,361						1,539,518						235,776						797,724

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(1) Items may not recalculate due to rounding.