Civitas Resources expands Permian footprint with $2.1 billion Vencer Energy acquisition

(WO) – Civitas Resources, Inc. announced the closing of its acquisition of certain oil and gas assets in the Midland basin, part of the greater Permian basin, in Texas from Vencer Energy, LLC, a Vitol investment.

Under the terms of the agreement, Civitas issued Vencer 7,181,527 shares of common stock and $1 billion of cash. A $550 million deferred cash payment is due to Vencer on Jan. 3, 2025. Civitas currently plans to use cash on hand and/or borrowings on the credit facility to fund the deferred cash payment.

The deal, which was announced Oct. 2023, adds over 40,000 new-acres in the Permian’s Midland basin, production levels of approximately 62 MMboed, of which 50% is oil, and roughly 400 development locations in the Spraberry and Wolfcamp formations. The acquisition brings Civitas’ estimated Permian production to about 170 MMboed.

Chris Doyle, Civitas President & CEO, commented, “Civitas now holds high-quality, scaled asset positions in both the Permian and DJ basins. Our assets, in combination with our strong balance sheet and low-cost structure, place us in a solid position to continue to deliver the industry’s best shareholder cash return program over the long term.”

Civitas Resources, Inc. is an independent, domestic oil and gas producer focused on development of its premier assets in the Denver-Julesburg and Permian basins. Civitas employs leading ESG practices and was Colorado’s first carbon neutral oil and gas producer.