(World Oil)– Civitas Resources Inc. reported strong financial and operating results for the third quarter of 2025, driven by higher production, lower costs, and continued balance sheet strength. The company earned net income of $177 million, generated $860 million in operating cash flow, and achieved Adjusted EBITDAX of $855 million, exceeding internal forecasts.
Oil and total production volumes rose 6% from the second quarter to 158,000 bpd of oil and 336,000 boed overall, while cash operating expenses fell 5% to $9.67/boe. The results came as Civitas advanced key development programs across the Permian and DJ basins, and finalized its previously announced non-core divestments.
In the Permian basin, output climbed to 181,000 boed, with oil volumes up 4% to 86,000 bpd. New pads, including the Double Stamp and Brother Nature developments in New Mexico and Texas, delivered average peak 30-day rates of 1,200 boed (80% oil) per well, outperforming nearby offsets by up to 20%. In the Midland Basin, a two-mile Wolfcamp B well produced 1,495 boed (74% oil), extending the economic boundary of the play.
The DJ basin also posted a 6% production increase to 155,000 boed, despite the sale of two non-core assets. Civitas’ Invicta development in Watkins surpassed 1 MMboe after just 105 days, with eight long-lateral wells exceeding performance expectations.
Financially, Civitas reported $1.2 billion in revenue and $65 million in hedging gains, while reducing LOE per boe by 7% and maintaining $2.2 billion in liquidity. The company also repurchased $250 million in stock during the quarter—about 8% of shares outstanding—and reduced net debt by $237 million.
The company’s scheduled earnings webcast was cancelled following its announced merger with SM Energy, which will create one of the largest independent U.S. oil and gas producers with a leading position in the Permian and DJ basins.
