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• Imagine the part of ExxonMobil or Chevron that finds and drills for oil and natural gas, but operating as a focused, independent company.
• Similar to how a major mining company extracts minerals from the earth, Civitas Resources extracts oil and natural gas, primarily from key U.S. geological basins.

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• Crude Oil: A primary liquid hydrocarbon extracted and sold for refining into gasoline, diesel, and various petroleum products.
• Natural Gas: A gaseous hydrocarbon extracted and sold for electricity generation, industrial use, and residential and commercial heating.
• Natural Gas Liquids (NGLs): Various hydrocarbons such as ethane, propane, and butane extracted alongside natural gas, used as feedstocks for petrochemicals and fuels.

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Civitas Resources (CIVI) Major Customers

Civitas Resources (symbol: CIVI) is an independent oil and natural gas exploration and production company. As an upstream energy producer, Civitas extracts crude oil, natural gas, and natural gas liquids (NGLs) from various basins.

Given its role in the energy value chain, Civitas Resources sells its produced commodities primarily to other companies, not directly to individual consumers. The specific names of their major customers are typically not publicly disclosed due to the confidential nature of supply contracts and competitive reasons within the industry. However, their customers generally fall into the following categories:

• Midstream Companies: These companies are responsible for the gathering, processing, and transportation of crude oil, natural gas, and NGLs. They operate pipelines, processing plants, and storage facilities, acting as intermediaries to move products from the wellhead to market hubs or end-users.
• Refiners and Petrochemical Companies: Refiners purchase crude oil to process into refined products such as gasoline, diesel, and jet fuel. Petrochemical companies acquire natural gas and NGLs as feedstocks for manufacturing plastics, chemicals, and other industrial products.
• Commodity Marketers and Traders: These entities buy crude oil, natural gas, and NGLs from producers and then resell them to other industrial users, utilities, or various end-market participants, often managing the logistics and market risk associated with these transactions.
• Utility Companies and Large Industrial Users: In some cases, large industrial facilities or utility companies (particularly for natural gas) may directly purchase commodities for power generation or as a direct fuel source for their operations.

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Wouter van Kempen, Interim Chief Executive Officer

Wouter van Kempen currently serves as the Interim Chief Executive Officer of Civitas Resources, a position he assumed in August 2025. Prior to his role at Civitas, he was the Chairman, President, and Chief Executive Officer of DCP Midstream GP, LLC from January 2013 to December 2022. His extensive experience in the energy industry also includes various leadership positions at Duke Energy Generation Services from 2003 to 2010, where he served as President and Vice President of Mergers and Acquisitions. Earlier in his career, he worked at General Electric, holding roles that included staff executive for corporate mergers and acquisitions. Mr. van Kempen is also the lead director for Engine No. 1, an investment firm.

Marianella Foschi, Chief Financial Officer and Treasurer

Marianella Foschi is the Chief Financial Officer and Treasurer of Civitas Resources. Before joining Civitas, Ms. Foschi held the position of Chief Financial Officer at Extraction Oil and Gas. Her background also includes serving as an associate at The Blackstone Group, where she focused on debt and equity investing within the energy sector and was responsible for investing $1.5 billion of private capital. This experience at The Blackstone Group demonstrates a pattern of managing companies backed by private equity firms. She also worked at Credit Suisse in Houston, involved in capital market transactions for oil and gas companies.

Clay Carrell, President and Chief Operating Officer

Clay Carrell was appointed President and Chief Operating Officer of Civitas Resources in May 2025. He brings over 35 years of experience in the energy industry, including his most recent role as Executive Vice President & Chief Operating Officer of Southwestern Energy until its merger with Chesapeake Energy. Prior to Southwestern Energy, Mr. Carrell was the Executive Vice President and Chief Operating Officer of EP Energy. He also held various leadership roles at El Paso Corporation, where he was instrumental in establishing EP Energy as an independent company and was named Chief Operating Officer in 2012. His career includes significant positions at ARCO Oil and Gas Company, Burlington Resources, and Peoples Energy Production.

Travis Counts, Chief Administrative Officer and Secretary

Travis Counts serves as the Chief Administrative Officer and Secretary for Civitas Resources. Previously, he was the Chief Legal Officer and Secretary of Civitas. Before his time at Civitas, Mr. Counts was a partner at the law firm Bracewell LLP. From 2013 to 2021, he held the role of General Counsel for Concho Resources Inc., where he was Senior Vice President, General Counsel, and Corporate Secretary until its acquisition by ConocoPhillips. His prior experience also includes serving as Vice President, Legal and Deputy General Counsel of Halcon Resources Corp. and as Associate General Counsel-Corporate of Petrohawk Energy Corp.

Kayla Baird, Senior Vice President and Chief Accounting Officer

Kayla Baird is the Senior Vice President and Chief Accounting Officer for Civitas Resources. She is a Certified Public Accountant with 26 years of experience in the oil and gas industry. Before joining Civitas, Ms. Baird was the Vice President, U.S. Accounting and Corporate Services for Baytex Energy Corp. following its acquisition of Ranger Oil Corporation, where she had been Vice President, Chief Accounting Officer, and Controller. Her career also includes roles as Vice President, Chief Accounting Officer and Controller of EnVen Energy Corporation, Chief Accounting Officer at Permian Resources, LLC, and various executive positions at ConocoPhillips. Ms. Baird began her career in public accounting, spending 13 years primarily with EY LLP, auditing large public oil and gas companies.

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1. Commodity Price Volatility

Civitas Resources' financial performance and profitability are highly susceptible to fluctuations in the prices of crude oil, natural gas, and natural gas liquids (NGLs). As an independent exploration and production company, its revenues are directly tied to these commodity prices, which are inherently volatile due to market and geopolitical instability, including disruptions from global events, conflicts, and actions by OPEC+ regarding global supply and demand.

2. Regulatory and Environmental Pressures

The company operates in an industry facing increasing regulatory and environmental scrutiny. Changes in laws, regulations, or policies, particularly those related to climate change and environmental protection, could impose significant operational and financial burdens on Civitas. The ongoing energy transition and decarbonization efforts also threaten long-term revenue growth, market share, and earnings stability for the company.

3. Operational and Production Risks

Civitas Resources faces inherent risks associated with crude oil and natural gas exploration, development, and production activities. These include uncertainties in drilling outcomes, the potential for drilling not to result in commercially viable production, and dependence on third-party infrastructure such as refineries, pipelines, and processing facilities. This reliance can lead to constraints in marketability and potential interruptions in production, adversely affecting cash flow and revenue streams. Recent reports have also highlighted challenges related to production declines and unmet production targets, further emphasizing these operational vulnerabilities.

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• Accelerated Global Energy Transition and Policy Shifts: Increasing regulatory and societal pressure for decarbonization is driving policies such as carbon pricing, stricter emissions standards, renewable energy mandates, and potential restrictions on fossil fuel development. This trend directly threatens the long-term demand for Civitas's oil and natural gas products, potentially increasing operational costs through compliance requirements and impacting asset valuations as the world shifts towards a lower-carbon economy. Evidence includes global climate agreements (e.g., Paris Agreement), national net-zero commitments, the European Green Deal, and the U.S. Inflation Reduction Act.
• Rapid Advancement and Adoption of Electric Vehicles (EVs) and Other Alternative Fuels: Significant technological improvements in battery capacity, cost-effectiveness, and charging infrastructure, combined with growing consumer demand and government incentives, are accelerating the transition away from gasoline and diesel-powered vehicles. This poses a direct and material threat to the long-term demand for crude oil, which is a primary product of Civitas Resources. Evidence includes exponential growth in EV sales globally, substantial investments by major automotive manufacturers, and government targets for phasing out internal combustion engine vehicle sales.
• Mounting ESG Investment Pressures and Reduced Access to Capital: Institutional investors, banks, and capital markets are increasingly incorporating Environmental, Social, and Governance (ESG) criteria into their investment decisions, leading to stricter scrutiny, higher cost of capital, and potential divestment from fossil fuel companies. This trend can limit Civitas's access to financing for exploration, development, and expansion projects, potentially hindering growth and impacting the company's valuation as capital flows increasingly favor lower-carbon industries. Evidence includes the proliferation of ESG-focused funds, climate-related shareholder resolutions, and major financial institutions adopting net-zero lending targets and restricting fossil fuel financing.

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Civitas Resources (symbol: CIVI) operates primarily in the upstream segment of the oil and gas industry, focusing on the exploration, development, and production of crude oil, natural gas, and natural gas liquids (NGLs). The company's operations are concentrated in the Permian Basin and the Denver-Julesburg (DJ) Basin in the United States.

Addressable Markets for Main Products or Services:

U.S. Oil and Gas Market (Overall)

• The U.S. oil and gas market size was valued at approximately USD 453.2 billion in 2024, is expected to reach USD 474.5 billion in 2025, and is projected to be worth USD 665.5 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 4.7% from 2024 to 2033.
• Another estimate values the U.S. oil and gas market size at USD 252.6 billion in 2024, projected to reach USD 339.5 billion by 2033, with a CAGR of 3.26% from 2025-2033.
• A different report indicates the U.S. oil & gas market size as USD 1.55 trillion in 2024, growing to USD 1.61 trillion in 2025, and projected to reach approximately USD 2.24 trillion by 2034, expanding at a CAGR of 3.75% between 2025 and 2034.
• The United States Oil and Gas Market size is also estimated at USD 142.81 billion in 2025 and is expected to reach USD 178.91 billion by 2030, at a CAGR of 4.61% during the forecast period (2025-2030).

U.S. Upstream Oil and Gas Market (Civitas Resources' Core Segment)

Civitas Resources operates in the upstream segment (exploration, development, and production).

• The upstream sector dominated the United States oil and gas market, holding 58.5% of the share in 2024.
• The upstream segment held 72.3% of the U.S. oil and gas market share in 2024 and is projected to advance at a 4.9% CAGR through 2030.
• Another source states the upstream segment held a 50% share in the U.S. oil & gas market in 2024.

Regional Production Volumes (Permian Basin and Denver-Julesburg (DJ) Basin)

While specific monetary market sizes for these basins were not available, production volumes illustrate their scale:

• The Permian Basin alone accounted for over 45% of the national crude oil output in 2024.
• In 2023, the Niobrara region within the DJ Basin recorded a daily average output of 670,000 barrels of oil (mbbl/d) and 1,534,000 barrels of oil equivalent (mboe/d).
• By September 2023, the Denver-Julesburg Basin's oil production alone reached approximately 516,000 barrels per day, with total oil movements from the basin, including associated regions, peaking at 630,000 barrels per day during the same period.
• Crude oil and condensate production in the DJ Basin was 491.4 thousand barrels per day (mbd) in 2020, while natural gas production was 5,058 million cubic feet per day (mmcfd) in the same year.
• Production from the Denver-Julesburg Basin exited 2024 at around 500 thousand barrels per day (Mb/d).

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Civitas Resources (symbol: CIVI) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Strategic Mergers and Acquisitions: The proposed merger with SM Energy is a significant driver, anticipated to create a top-10 independent U.S. oil producer with an expanded asset base and operational capabilities. This follows previous bolt-on acquisitions, such as the $300 million transaction in the Permian Basin that added 19,000 net acres and approximately 130 future development locations. These strategic combinations are designed to create synergies, expand operational capabilities, and enhance market positioning, leading to increased production and a diversified portfolio.
2. Increased Production and Development in Core Basins: Civitas has demonstrated a focus on increasing sales and oil volumes, particularly in its key operating areas: the Permian and DJ Basins. Recent results highlight higher production, and the company continues to unlock new resources, such as the successful extension of Wolfcamp D development in the Southern Midland Basin, which has identified approximately 120 new high-productivity locations. This ongoing development and drilling efficiency contribute directly to higher output and, consequently, greater revenue.
3. Optimization of Asset Portfolio and High-Quality Inventory Addition: The company is actively optimizing its asset portfolio by divesting non-core assets, as seen with the divestment of two DJ Basin assets, to focus on higher-return opportunities. Concurrently, Civitas is expanding its high-quality development inventory through its "ground game" in the Permian, adding over 75 gross locations year-to-date. This strategy ensures that future production comes from more profitable wells, supporting sustainable revenue growth.
4. Strong Commodity Price Realizations and Effective Hedging Strategies: While external market factors influence commodity prices, Civitas' ability to achieve strong oil realizations and solid natural gas hedging gains directly enhances its revenue per unit of production. This focus on maximizing the value of its produced crude oil, natural gas, and natural gas liquids sales contributes significantly to its overall revenue performance.

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Share Repurchases

• In August 2025, Civitas Resources increased its share repurchase authorization to $750 million and planned a $250 million accelerated share repurchase program to be completed by the end of Q3 2025. By Q3 2025, the company completed this $250 million accelerated share repurchase, repurchasing 7.4 million shares.
• Future free cash flow, after the base dividend, is expected to be allocated equally (50%) to share repurchases and debt reduction on an annual basis.
• In 2024, Civitas' annual share buybacks totaled $427.305 million. This included a $125 million share repurchase in Q2 2024 and approximately 876 thousand shares repurchased from NGP in early March 2024.

Share Issuance

• In January 2024, Civitas issued approximately 7 million shares as part of the acquisition of Midland Basin assets from Vencer Corporation.
• Civitas Resources was formed in 2021 through the merger of Bonanza Creek Energy and Extraction Oil & Gas, followed by the acquisition of Crestone Peak Resources in 2022.

Outbound Investments

• In early 2025, Civitas agreed to a $300 million bolt-on transaction to acquire certain operated Midland Basin assets, adding 19,000 net acres and approximately 130 future development locations.
• In January 2024, the company closed the acquisition of certain oil and gas assets in the Midland Basin from Vencer Energy for $2 billion. Overall, Civitas spent approximately $6.7 billion on Permian Basin acquisitions from 2023 to 2024.
• In August 2023, Civitas completed the acquisitions of Hibernia (Midland Basin, ~$2.2 billion) and Tap Rock Resources (Delaware Basin, ~$2.5 billion) from private equity firm NGP.

Capital Expenditures

• For 2025, estimated capital expenditures are 95% drilling, completion, and facility related, with approximately 55% of investments planned for the first half of the year to support sustainable capital efficiencies. The company projects a nearly 5% reduction in capital investments year-over-year.
• Total capital expenditures for the full year 2024 were $1.933 billion. The company revised its full-year 2024 capital guidance to $1.85 - $1.95 billion, a $50 million reduction driven by lower well costs.
• Capital allocation for 2024 and 2025 is primarily focused on the Watkins area in the DJ Basin (70% to 75%), alongside continued activity in the Permian Basin, with an increasing percentage directed to the Delaware Basin.