Civitas Issues Statement in Conjunction with Debt Offering
Civitas Resources, an independent oil and gas producer, is set to finance its transformative Vencer acquisition through a recently announced debt offering. The company’s CEO, Chris Doyle, expressed confidence in the success of the offering, highlighting the flexibility in Civitas’ capital structure and the value of its equity. With plans to generate $300 million or more from non-core asset sales, Civitas aims to maintain a strong capital structure and rapidly progress towards its mid-cycle leverage target.
The Vencer transaction was strategically structured to provide optionality, including a deferred payment of $550 million due in January 2025. This flexibility has allowed Civitas to navigate recent oil price volatility while ensuring low leverage. The acquisition positions Civitas as a well-capitalized enterprise with a portfolio of oil assets in the top three oil basins in the United States.
Civitas Resources, Inc. focuses on developing its premier assets in the Denver-Julesburg (DJ) and Permian basins. The company’s business model combines capital discipline, a strong balance sheet, cash flow generation, and sustainable cash returns to shareholders. Notably, Civitas is committed to leading Environmental, Social, and Governance practices and has been Colorado’s first carbon-neutral oil and gas producer.
The company’s common stock trades on the New York Stock Exchange under the symbol “CIVI.” Civitas Resources is dedicated to providing positive returns to its shareholders while prioritizing responsible and sustainable practices.
Investors should note that forward-looking statements in this press release are subject to various risks and uncertainties. These statements are based on assumptions believed to be valid at present but may differ from actual results due to factors beyond Civitas’ control. The company advises caution in placing undue reliance on these forward-looking statements.
For more information about Civitas Resources, Inc. and its ongoing initiatives, please refer to their official website or consult their filings with the Securities and Exchange Commission (SEC).
Overall, Civitas Resources’ debt offering to finance the Vencer acquisition demonstrates the company’s commitment to strategic growth and its ability to adapt to market conditions. With a focus on responsible practices and a strong capital structure, Civitas is well-positioned to thrive in the oil and gas industry.