Civitas Sources Inc., an oil and fuel producer specializing in the Denver-Julesburg (DJ) and Permian basins, reported a internet revenue of $302.8 million for the fourth quarter of 2023, rising above the $281.8 million for the corresponding quarter a yr prior.
In a media launch, Civitas stated that crude oil, pure fuel, and pure fuel liquids (NGL) gross sales for the fourth quarter of 2023 stood at $1.1 billion, up 9.0 p.c from the third quarter of 2023.
The rise in gross sales was primarily associated to 18 p.c increased gross sales volumes, partially offset by 8.0 p.c decrease realized commodity pricing. Crude oil accounted for 83 p.c of whole income for the fourth quarter 2023.
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In comparison with the third quarter of 2023, DJ Basin gross sales volumes have been up practically 3.0 p.c and Permian Basin volumes have been increased by 58 p.c. Civitas stated the fourth quarter 2023 Permian Basin gross sales volumes included a full quarter of manufacturing from the Faucet Rock and Hibernia belongings as in comparison with solely two months included within the third quarter of 2023.
Fourth quarter 2023 Permian Basin manufacturing was impacted by downtime primarily related to facility upgrades within the Delaware, a better oil-cut space of manufacturing for Civitas. Excluding this downtime, fourth quarter Permian Basin volumes would have been roughly 112,000 barrels of oil equivalents per day (boepd), Civitas stated. The upgrades have been accomplished and the corporate’s Permian Basin December 2023 manufacturing averaged 120,000 boepd, 50 p.c of which was crude oil.
“Civitas is a remarkably completely different firm right this moment. As our DJ Basin asset continues to outperform, we have been profitable in strategically increasing our portfolio during the last yr by capturing accretive acquisitions that present us with necessary scale and diversification in one other world-class unconventional basin, the Permian“, Civitas CEO Chris Doyle stated. “With a lengthened runway of high-return improvement alternatives, we’re higher positioned right this moment to create sustainable, long-term worth for our shareholders. Our 2024 outlook builds on the momentum we created during the last yr as our premier asset base supplies us with extra flexibility in our capital allocation and better certainty in our outcomes. Our focus in 2024 is evident: maximize free money move, return money to house owners, and preserve our robust stability sheet”.
Trying ahead, Civitas stated it’s sustaining its previously-provided 2024 manufacturing steering and lowering its estimated 2024 capital expenditures by $150 million. Capital expenditure is about between $1.9 billion and $2.1 billion for 2024, with manufacturing steering remaining at 325,000-345,000 boepd.
Civitas’ capital expenditure for the fourth quarter of 2023 was $470 million, bringing full-year 2023 capital expenditures to $1,365 million.
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