Civitas Resources announced its first quarter 2023 financial and operating results. A conference call to discuss the results is planned for 8:00 a.m. MT (10:00 a.m. ET), May 4, 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.

Civitas CEO Chris Doyle said, "Civitas reported outstanding results again this quarter. Through ongoing capital discipline and a focus on generating cash, our production and cash flow exceeded expectations and our capital investments were slightly lower than expected. Our business plan is a proven value creator and is focused on four pillars: generating significant free cash flow, maintaining a premier balance sheet, returning cash to shareholders, and leading on ESG. We are delivering today across all of these categories and our shareholder return framework is differentiated with continued high payouts to our owners."

The Company's board of directors approved a dividend of $2.12 per share, payable on June 29, 2023 to shareholders of record as of June 15, 2023. The total reflects the combination of a quarterly base dividend of $0.50 per share and a quarterly variable dividend of $1.62 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.

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.