Civitas Sources Weighs Sale of DJ Basin Belongings

Last updated: 2025/01/15 at 10:03 PM

Editorial Team 6 months ago

Civitas Sources Inc. is exploring a sale of half or all of its belongings within the Denver-Julesburg Basin, which may very well be valued at greater than $4 billion, individuals with data of the matter mentioned.

The shale oil producer is working with a monetary adviser to gauge purchaser curiosity within the belongings, in response to the individuals, who requested to not be recognized discussing confidential data.

Civitas could be open to divesting totally from the basin in Colorado if it receives a sufficiently engaging supply, the individuals mentioned. The DJ Basin belongings produce roughly 160,000 barrels of oil equal per day.

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Shares in Civitas have been up about 0.9% at 9:43 a.m. in New York, giving the corporate a market worth of $5.2 billion.

Deliberations are ongoing and Civitas might resolve to not proceed with a transaction, the individuals mentioned. A consultant for Denver-based Civitas declined to remark.

A sale of some or all of its belongings in DJ Basin would liberate money that Civitas might use for acquisitions and to assist pare its debt, which, in response to knowledge compiled by Bloomberg, stands at about $4.8 billion. Chevron Corp. and Occidental Petroleum Corp. are among the many producers within the DJ Basin, which is tougher to function than most different US basins due to Colorado’s regulatory necessities.

Civitas additionally controls a large enterprise within the Permian Basin, the best and worthwhile oil basin within the US. That’s thanks largely to its $4.7 billion acquisition of belongings from firms managed by NGP Power Capital Administration in 2022.

Midsize shale producers have stepped up efforts to reshape their portfolios as they combat for survival in a quick consolidating business. Ovintiv Inc. signed a pair of offers in November to exit the Uinta Basin and bolster its actions in Canada. Additionally that month, Coterra Power Inc. bulked-up within the Permian by agreeing to accumulate two firms for about $4 billion.

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