The following is a summary of the Civitas Resources, Inc. (CIVI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Civitas Resources reported strong financial results for Q3 2024 with an adjusted EBITDA of $910 million.

• During the quarter, the company returned $227 million to shareholders through repurchases, demonstrating a focus on shareholder value.

• For Q3, the company allocated 50% of free cash flow to debt reduction. This strategic focus on balance sheet strength has been emphasized in their financial actions.

Business Progress:

• Civitas has successfully integrated their Permian acquisitions, enhancing their operational track record and scale.

• Demonstrated capital efficiency improvements with a focus on returns on investment.

• Initiated sample fracs across their Permian program in Q4, showing early success in the Midland Basin with a more than 30% increase in daily fluid throughput.

• Announced commencement of production on 13 4-mile laterals in the DJ Basin, with the Blue 4AH well setting a Colorado record for 90-day cumulative production.

Opportunities:

• Civitas has a diversified portfolio, managing to increase capital efficiency through operational improvements and focusing on high-return projects.

• The company's focus on continuous improvement and production optimization, especially with new developments within the Wolfcamp D in the Permian, highlights an opportunity to expand inventory and capitalize on competitive well costs.

Risks:

• Mentioned challenges include operational disruptions due to third-party facility downtimes and water takeaway constraints in the Permian. These issues, although resolved, signal potential volatility in operations.

• Acknowledged the need to adjust activity levels responsive to commodity price changes, reflecting the impact of economic fluctuations on operations.

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