Civitas Stakes Second Claim in the Permian
If you took a summer vacation the last week of June, you might’ve missed the abrupt dogleg by Denver-based Civitas Resources that took the company well off its operating path in Colo. Borne of a three-way merger in 2021 that netted 525,000 net acres and 160 MBOED, Civitas snapped up another E&P rival six months later to become the largest pure player in the D.J. Basin. But in the oil and gas biz, titles can change quicker than ingredients in a chili recipe.
Reese Energy Consulting today is following the latest from Civitas, which broke from its pure-play status in June with a widely unexpected leap into the Permian. In a $4.7 billion deal that included two acquisitions in the Midland and Delaware, a combined 68,000 net acres, and 335 MMBOE in proved reserves, Civitas’ dramatic expansion outside Colo., followed Chevron’s $7.6 billion expansion inside the state. A big jump out and a bigger jump in.
Enverus Research Intelligence tossed in its two cents, pointing to limited expansion opportunities for Civitas in the D.J., but a ripe market there for deep-pocket buyers like Chevron to court the basin’s few remaining private operators. Now, four months after its entrance into the Permian, Civitas is building on those assets with a $2.15 billion bolt-on acquisition in the Midland. The deal with Switzerland-based Vitol for assets operated by Houston-based Vencer Energy includes 44,000 net acres and 62 MBOED (50% oil). Civitas expects 170 MBOED in total Permian production next year.