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DENVER - Civitas Resources, Inc. (NYSE: CIVI), an independent oil and gas company with a market capitalization of $2.65 billion and substantial EBITDA of $3.62 billion, has announced the pricing of a $750 million private placement of 9.625% senior notes due 2033. The offering, which was upsized from its initial amount, is set to close on June 3, 2025, subject to customary closing conditions.
The company plans to utilize the net proceeds from this offering to repay part of the outstanding borrowings under its revolving credit facility. The notes will be offered only to qualified institutional buyers and non-U.S. persons in accordance with Rule 144A and Regulation S, respectively, under the Securities Act of 1933, as amended. These notes will not be registered under the Securities Act or any state securities laws and will be issued pursuant to an exemption from such registration requirements.
Civitas Resources, with operations in the Permian Basin and the DJ Basin, emphasizes a business strategy that includes generating significant free cash flow (currently yielding 33%), maintaining a strong balance sheet, returning capital to shareholders through a substantial 10.54% dividend yield, and showcasing leadership in environmental, social, and governance (ESG) practices. According to InvestingPro analysis, the company appears undervalued, trading at a P/E ratio of just 3.17x.
The company’s announcement contains forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those projected. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, including changes in commodity prices, the risks associated with oil and gas activities, and potential increases in operating costs. For deeper insights into Civitas Resources’ financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
Investors are advised that forward-looking statements are not guarantees of future performance and that actual results or developments may differ significantly from those projected in the forward-looking statements. The company has no obligation to update any forward-looking statements.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such jurisdiction.
The information in this article is based on a press release statement from Civitas Resources, Inc.
In other recent news, Civitas Resources Inc. reported better-than-expected financial results for the first quarter of 2025, with earnings per share reaching $1.77, surpassing the forecast of $1.63. Revenue also exceeded expectations, coming in at $1.19 billion compared to the anticipated $1.18 billion. In a strategic financial move, Civitas Resources announced plans to offer $500 million in senior unsecured notes due in 2032, with proceeds aimed at repaying existing debt under its revolving credit facility. The company also amended its credit agreement, reducing its borrowing base from $3.4 billion to $3.3 billion while maintaining its elected loan limit at $2.5 billion. Additionally, Civitas Resources has implemented a $100 million annual cost optimization plan to enhance financial resilience. Nearly 50% of the company’s crude oil production for 2025 is hedged, valued at $200 million. The firm has set a year-end net debt target of $4.5 billion and is considering potential asset sales to focus on non-producing assets. Analysts from firms such as TD Cowen and JPMorgan have engaged with Civitas Resources, discussing operational strategies and financial priorities amidst market volatility.
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