Denver-based Civitas Resources said last week it divested two non-core asset packages covering 82,400 acres in DJ Basin for $215 million and acquired Vencer Energy in Midland Basin for $2 billion. Oil & Gas Journal said the acquisition “completed a trio of deals that has taken Civitas into the Permian Basin at scale.” Earlier Civitas acquired assets from Tap Rock Resources and Hibernia Energy in Midland Basin – portfolio companies of NGP Energy Capital Management.
In Permian Basin in Q1, Civitas produced an average of 166,604 boed – up from 106,004 boed in 2023Q4. Total production of 335,500 boed ranks at the midpoint of full-year guidance. Civitas said it will spend about 60 percent of capital expenses ($386,234,000) this year in Permian (full year spending remains $1.8 billion to $2.1 billion), which produced 83,025 barrels of oil in Q1.
Chris Doyle, CEO, said May 2, “Civitas is off to a great start this year with strong performance across our portfolio… Our results highlight just the beginning of Civitas’ bright future ahead. In the Permian our execution is already unlocking value through improved cycle times and cost reductions.” Permian sales volumes in Q1 were up 58 percent over 2023Q4.