Drilling & Completions | Quarterly / Earnings Reports | First Quarter (1Q) Update | Financial Results | Capital Markets | Capital Expenditure
Civitas Resources, Inc. First Quarter 2023 Results
Civitas Resources, Inc. announced first quarter 2023 results.
Highlights
- Average daily sales volumes of 159.4 thousand barrels of oil equivalent per day ("MBoe/d"), near the high-end of Company quarterly guidance of 155-160 MBoe/d
- Total capital expenditures of $236.9 million
- GAAP net income of $202.5 million and Adjusted EBITDAX(1) of $443.4 million
- Net cash provided by operating activities of $538.8 million and free cash flow(1) of $186.5 million
- Fixed-plus-variable dividend, to be paid in June, of $2.12 per share, essentially flat with first quarter's dividend of $2.15 per share
- Total liquidity was $1.5 billion as of March 31, 2023, which consisted of $556.1 million of cash plus funds available under the Company's credit facility
Combined Base and Variable Dividend to be Paid in June
First Quarter 2023 Financial and Operating Results
During the first quarter of 2023, the Company reported average daily sales of 159.4 MBoe/d, of which 45% was crude oil, 31% was natural gas, and 24% was natural gas liquids. The table below provides sales volumes, product mix, and average sales prices for the first quarter of 2023 and 2022.
Three Months Ended March 31, |
|||||||||||
2023 |
2022 |
% Change |
|||||||||
Avg. Daily Sales Volumes: |
|||||||||||
Crude oil (Bbls/d) |
71,791 |
68,039 |
6 |
% |
|||||||
Natural gas (Mcf/d) |
298,957 |
297,627 |
- |
% |
|||||||
Natural gas liquids (Bbls/d) |
37,812 |
41,363 |
(9 |
)% |
|||||||
Crude oil equivalent (Boe/d) |
159,429 |
159,007 |
- |
% |
|||||||
Product Mix |
|||||||||||
Crude oil |
45 |
% |
43 |
% |
|||||||
Natural gas |
31 |
% |
31 |
% |
|||||||
Natural gas liquids |
24 |
% |
26 |
% |
|||||||
Average Sales Prices (before derivatives): |
|||||||||||
Crude oil (per Bbl) |
$ |
71.21 |
$ |
89.65 |
(21 |
)% |
|||||
Natural gas (per Mcf) |
$ |
3.82 |
$ |
4.20 |
(9 |
)% |
|||||
Natural gas liquids (per Bbl) |
$ |
27.06 |
$ |
41.68 |
(35 |
)% |
|||||
Crude oil equivalent (per Boe) |
$ |
45.64 |
$ |
57.06 |
(20 |
)% |
Capital expenditures during the quarter were $236.9 million, which included $12.4 million of land and midstream investments. The Company drilled 28 gross (21.3 net) operated wells, completed 33 gross (29.2 net) operated wells, and turned to sales 49 gross (42.6 net) operated wells during the first quarter.
Net crude oil, natural gas, and natural gas liquids revenue in the first quarter of 2023 was $656.0 million, compared to $814.3 million in the fourth quarter of 2022. The decrease was primarily related to 10% and 33% lower crude oil and natural gas realized prices, respectively. Crude oil accounted for approximately 70% of total revenue for the quarter. Differentials for the Company's crude oil production, relative to WTI, averaged approximately negative $4.72 per barrel in the quarter.
Lease operating expense for the first quarter of 2023, on a unit basis, increased to $3.19 per Boe from $3.02 per Boe in the fourth quarter of 2022.
The Company's general and administrative expenses for the first quarter were $36.9 million, which included $7.4 million in non-cash stock-based compensation as well as $4.4 million of advisory services and cash severance costs. On a per unit basis, the Company's general and administrative expenses decreased 2% sequentially from $2.62 per Boe in the fourth quarter of 2022 to $2.57 per Boe in the first quarter of 2023.
2023 Outlook
Full-year 2023 guidance is shown below.
2023 Guidance |
Low |
High |
|
D&C Capital Expenditures ($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 |
$0.70 |
|
Cash G&A Expenses ($MM) |
$90 |
$100 |
|
Production Taxes (% of revenue) |
8% |
9% |
|
Cash Income Taxes ($MM)(1) |
$75 |
$125 |
|
(1) Assuming $80.00/Bbl WTI and $3.50/MMBtu Henry Hub commodity 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.
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