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Investing.com -- Civitas Resources, Inc. (NYSE:CIVI) shares climbed 2.5% in after-hours trading Thursday after the oil and gas producer reported third-quarter earnings that significantly exceeded analyst expectations, despite slightly missing revenue projections.
The Denver-based energy company posted adjusted earnings of $1.93 per share for the third quarter, surpassing the analyst consensus of $1.31 by 47%. Revenue came in at $1.17 billion, just shy of the $1.18 billion analysts had forecast. The company reported oil production of 158,000 barrels per day and total production of 336,000 barrels of oil equivalent per day, both representing a 6% increase from the second quarter.
"Third quarter results exceeded expectations, with higher production and lower cash operating expenses contributing to our strong performance," said Civitas in its earnings release. The company generated $860 million in operating cash flow and $254 million in adjusted free cash flow during the quarter.
Civitas reduced its cash operating expenses by 5% to $9.67 per barrel of oil equivalent, with lease operating expenses down 7% from the previous quarter. The company also reduced its net debt by $237 million while repurchasing $250 million of its stock, representing approximately 8% of outstanding shares.
The company’s Board of Directors approved a quarterly dividend of $0.50 per share, payable on December 29, 2025, to shareholders of record as of December 15, 2025.
Civitas noted that it has discontinued providing quarterly and annual guidance due to its pending merger with SM Energy Company (NYSE:SM). The company also completed the divestment of two previously-announced non-core DJ Basin assets on August 29 and October 1, as planned.
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