Civitas names board chair van Kempen as interim CEO

DENVER - Civitas Resources, Inc. (NYSE:CIVI), whose stock has declined about 9% in the past week and is currently trading at $27.85, announced Wednesday that Board Chair Wouter van Kempen has been appointed Interim Chief Executive Officer, replacing Chris Doyle who is departing the company. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.

Howard A. Willard III, a board member since 2021, will temporarily assume the role of Board Chair until a permanent CEO is identified, at which point van Kempen is expected to return to his position as Chair, according to a company press release.

"The Board believes this is the right time to transition to new leadership," said Willard in the announcement. "We are excited that Wouter, a seasoned veteran of the energy industry with vast leadership experience, has agreed to serve as Interim CEO."

Van Kempen, who has served on Civitas’ board since February 2023, brings over 20 years of leadership experience in the energy industry. He previously served as Chairman, President and Chief Executive Officer of DCP Midstream from January 2013 until December 2022. He currently serves as Lead Director for Engine No. 1, an investment firm focused on innovation and U.S. reindustrialization.

"I am committed to continue transforming Civitas into a world-class energy company by strengthening our performance-driven culture, executing with relentless discipline, and driving industry-leading cost efficiency," van Kempen stated.

Civitas Resources is an independent exploration and production company focused on crude oil and liquids-rich natural gas assets in the Permian Basin in Texas and New Mexico and the DJ Basin in Colorado.

The company’s board has initiated its leadership succession plan to identify the next permanent CEO.

In other recent news, Civitas Resources announced the pricing of a $750 million private placement of senior notes with a 9.625% interest rate, set to mature in 2033. The company plans to use the proceeds to repay part of its outstanding borrowings under its revolving credit facility. Civitas Resources also amended its credit agreement, reducing the borrowing base from $3.4 billion to $3.3 billion, while maintaining an elected loan limit of $2.5 billion. Mizuho has lowered its price target for Civitas Resources to $50, citing an expected increase in oil volumes and a decrease in capital expenditures in the latter half of 2025, leading to significant free cash flow expansion. Meanwhile, UBS raised its price target to $30, anticipating improved performance in the Delaware Basin as Civitas begins operating its own wells. RBC Capital downgraded Civitas Resources from Outperform to Sector Perform, adjusting the price target to $40 due to market volatility and the company’s higher financial leverage. Despite these challenges, Civitas Resources remains confident in meeting its debt targets by the end of 2025.

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