Civitas Resources, Inc. (CIVI): Business Model Canvas [Dec-2025 Updated]

You're looking at Civitas Resources, Inc. right now, and honestly, the story is all about transition and efficiency ahead of that massive $12.8 billion merger with SM Energy. As a long-time observer of E&P plays, I can tell you their model hinges on squeezing maximum value from premier Permian and DJ Basin acreage, evidenced by their Q3 2025 cash operating expense of just $9.67 per BOE. This isn't just about drilling; it's a disciplined approach balancing shareholder returns via a base dividend with aggressive ESG targets, like hitting Permian carbon neutrality by the end of 2025. Dive below to see the full nine-block breakdown of how Civitas Resources, Inc. is structuring itself for this next chapter.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Key Partnerships

You're looking at the relationships Civitas Resources, Inc. needed to keep its operations humming across the DJ and Permian Basins as of late 2025. These aren't just casual acquaintances; these are mission-critical alliances that directly impact capital deployment and production efficiency. Honestly, the biggest partnership news is the one that ends the Civitas Resources entity as an independent player.

Transformational Merger Partner: SM Energy Company

The announced merger with SM Energy Company, declared on November 3, 2025, fundamentally reshapes Civitas Resources' partnership landscape. This all-stock transaction carries an enterprise value of approximately $12.8 billion, inclusive of net debt. Here are the key financial and structural partnership terms:

Metric	Value/Term
Total Enterprise Value	Approx. $12.8 billion
Equity Value (Approx.)	Roughly $2.81 billion
Consideration per CIVI Share	1.45 shares of SM Energy common stock
Post-Closing Ownership (Fully Diluted)	Civitas Stockholders: 52%; SM Energy Stockholders: 48%
Combined Net Acreage	Approx. 823,000 net acres
Identified Annual Synergies	$200 million (Upside to $300 million)
Pro Forma 2025 Consensus FCF	Expected to exceed $1.4 billion

This deal is expected to close in the first quarter of 2026, but the pro forma metrics already define the combined entity's future partnership strategy.

Midstream and Pipeline Operators

Reliable takeaway capacity is non-negotiable for an E&P company like Civitas Resources. They work closely with midstream operators to secure gathering, processing, and transportation. These relationships directly affect realized prices and infrastructure costs.

• Improved commercial terms for long-haul transportation from the DJ Basin benefited realized oil prices during the second quarter of 2025.
• The 2025 cost optimization plan, estimated to deliver $40 million in impact, includes savings from improved oil differentials secured via new transportation agreements.
• Civitas Resources actively manages these relationships to maintain reliable takeaway capacity for its production volumes across the Permian and DJ Basins.

Oilfield Service Providers for Drilling and Completion

The efficiency gains Civitas Resources reported in 2025 were heavily reliant on the performance of its service providers, especially concerning advanced completion techniques. You see the results in their cycle times and fluid pumping rates.

• Simulfrac operations in the Midland Basin averaged 160 thousand barrels of fluid pumped per day per crew in Q1 2025, a 5% increase over the prior quarter.
• Drilling cycle times in the Delaware Basin were 10% faster than planned in the first quarter of 2025.
• The company increased its utilization of local sand in completions from approximately 50% to more than 90% during Q1 2025, indicating strong partnership with local materials suppliers.
• As of the Q2 2025 outlook, Civitas Resources planned to utilize two frac crews in the Permian Basin and two frac crews in the DJ Basin.
• Management expects unit operating costs to fall below $10 per BOE in the second half of 2025, driven partly by well cost reductions achieved with service partners.

Landowners and Mineral Rights Holders

Securing and optimizing acreage is foundational. Civitas Resources partners with landowners and mineral rights holders through leasing and acreage trades to build its inventory. This is a continuous, non-transactional partnership stream.

• From the start of 2024 through February 2025, the Company added roughly two years of development inventory in the Permian and DJ Basins via land transactions.
• As of early 2025, the estimated inventory stood at approximately 1,200 gross locations in the Permian Basin and 800 gross locations in the DJ Basin.
• The company executed agreements to divest non-core DJ Basin assets for $435 million, which involved coordinating with mineral and surface owners on the divestiture.

Financial Institutions

The relationship with lenders is crucial for funding development and managing the balance sheet, especially around major capital events like the SM Energy merger. The revolving credit facility is the primary partnership here.

• In February 2025, Civitas Resources amended its facility, increasing elected commitments to $2.5 billion from $2.2 billion.
• JPMorgan Chase (NYSE:JPM) Bank, N.A., serves as the administrative agent for the Amended and Restated Credit Agreement, which was amended on May 28, 2025.
• The May 2025 amendment reduced the total borrowing base from $3.4 billion to $3.3 billion, though the elected commitment remained at $2.5 billion.
• Financial liquidity, which includes borrowings available under this facility, totaled $2 billion at the end of Q2 2025.
• The company issued $750 million in Senior Notes in Q2 2025, specifically to reduce borrowings on this credit facility.

Finance: draft pro forma debt schedule post-merger close by end of Q1 2026.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Key Activities

You're looking at the core engine of Civitas Resources, Inc. (CIVI) operations as of late 2025. This is where the real work of turning rock into revenue happens, focusing on execution and efficiency across their premier assets in the Permian and DJ Basins.

The fundamental activity is the exploration and production (E&P) of crude oil and natural gas. Operationally, the third quarter of 2025 showed significant output, with oil production hitting more than 158 thousand barrels of oil per day (MBbl/d) and total production reaching 336 thousand barrels of oil equivalent per day (MBoe/d). This represented a 6% increase in both oil and total production from the second quarter of 2025.

Drilling optimization is a major focus, specifically pushing for longer horizontal sections. Civitas Resources, Inc. (CIVI) is actively optimizing drilling by deploying long laterals, with the average lateral length completed in the third quarter of 2025 being nearly two miles, which is over 10,560 feet. For example, they drilled a two-mile lateral well to total depth in a company-record 1.3 days, excluding surface work. Other high-efficiency wells, like those on the Double Stamp pad, featured two-mile laterals.

Strategic asset management involves continually refining the asset base. Civitas Resources, Inc. (CIVI) executed on its plan to divest non-core assets, signing agreements to sell DJ Basin assets for $435 million. This amount significantly exceeded the full-year 2025 asset sales target of $300 million. The closing of two of these non-core DJ Basin asset sales occurred on August 29 and October 1, 2025. The proceeds are being used to strengthen the balance sheet.

Cost optimization is a continuous activity designed to bolster free cash flow. The company launched a $100 million cost optimization and efficiency initiative, with a specific target to realize $40 million in savings impacting 2025. This focus drove down operational costs; cash operating expenses in the third quarter of 2025 were lower by 5% compared to the prior quarter, settling at $9.67 per barrel of oil equivalent (BOE). Lease operating expense (LOE) per BOE saw an even sharper drop, falling 7% from the second quarter.

To protect cash flow from market swings, commodity price hedging is a key activity. Civitas Resources, Inc. (CIVI) has actively managed this risk. For the second half of 2025, the company protected nearly 60% of its oil production with a weighted-average floor price of $67 per barrel WTI. This hedging strategy paid off in the third quarter, with realized hedging gains totaling $65 million, 60% of which came from crude oil swaps and collars. In the second quarter, they opportunistically added over nine million barrels of oil hedges covering through the third quarter of 2026.

Here's a snapshot of the operational and financial metrics tied to these key activities for the nine months ended September 30, 2025:

Activity Metric	Value (9 Months Ended Sept 30, 2025)	Unit
Oil Production (Average)	150	MBbl/d
Total Production (Average)	321	MBoe/d
Divestiture Proceeds (Announced)	435	$ million
Net Debt Reduction (Q3 Only)	237	$ million
Cash Operating Expenses	9.67	$/BOE
Realized Hedging Gains (Q3 Only)	65	$ million

The activity level in the third quarter included 31 net operated wells drilled, 28 completed, and 40 turned to sales.

The company's focus on capital efficiency is also evident in its capital expenditure tracking:

• Capital expenditures for the three months ended September 30, 2025: $491 million.
• Capital expenditures for the nine months ended September 30, 2025: $1,492 million.
• Net debt reduction year-to-date (through Q3): $237 million in Q3 alone.
• Year-to-date stock repurchases: nearly 10% of outstanding shares.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Key Resources

You're looking at the core assets Civitas Resources, Inc. relies on to run its business as of late 2025. These aren't just things they own; they're the engine for their cash flow generation, primarily in the Permian Basin in Texas and New Mexico and the DJ Basin in Colorado. These premier acreage positions are the foundation.

The inventory of future drilling opportunities is substantial, giving Civitas Resources, Inc. a long runway. Honestly, this inventory depth is what keeps the long-term valuation interesting, even with the recent merger announcement with SM Energy Company.

Resource Category	Metric	Value
Development Inventory (Required Estimate)	Estimated Gross Locations in Permian Basin	1,200
Development Inventory (Required Estimate)	Estimated Gross Locations in DJ Basin	800
Financial Strength	Financial Liquidity (as of Q3 2025)	$2.2 billion
Operational Performance (Q3 2025)	Average Net Operated Wells Completed	30
Operational Performance (Q3 2025)	Average Lateral Length Completed	2.2 miles

The financial muscle is definitely there to support ongoing development and debt reduction targets. You saw that Operating Cash Flow hit $860 million in the third quarter alone, which certainly bolsters that liquidity figure.

Operational expertise in horizontal drilling and completion techniques is a major differentiator for Civitas Resources, Inc. They aren't just drilling; they're optimizing the process to get more out of every foot of lateral they put in the ground. Here's a quick look at what that expertise means in real numbers:

• Drilled footage per day in the Delaware Basin ran 20% above plan during Q2 2025.
• Leveraging real-time AI optimization software in completions cut cycle times by 5%.
• Set a company record drilling a two-mile lateral well to total depth in just 1.3 days (excluding surface drilling) in Q3 2025.
• Long-reach lateral development in Watkins saw wells drilled over four miles and completed over three miles.

To be fair, managing costs has been a focus, which impacts the human capital side of the key resources equation. Civitas Resources, Inc. announced an approximate 10% reduction in its workforce across all organizational levels earlier in 2025 to solidify its low-cost structure. Still, the remaining skilled workforce is executing on these complex, long-lateral programs.

Finance: draft 13-week cash view by Friday.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Value Propositions

You're looking at the core promises Civitas Resources, Inc. makes to its investors and stakeholders as of late 2025. Honestly, for an E&P company, the value proposition centers heavily on disciplined capital allocation and operational excellence, which translates directly to shareholder returns.

Maximizing shareholder returns via high free cash flow generation is clearly the top priority. The third quarter of 2025 showed this in action, delivering Adjusted Free Cash Flow of $254 million on Operating Cash Flow of $860 million for the quarter. Looking at the first nine months of 2025, the Operating Cash Flow hit $1,877 million. The company's stated 2025 outlook, based on $70 WTI, projected Free Cash Flow of approximately $1.1 billion. This focus on cash flow is reflected in the valuation metrics; as of November 21, 2025, the Price-to-Free-Cash-Flow ratio, based on trailing twelve months ended September 2025, stood at a low 2.75.

Capital return is concrete and predictable. Civitas Resources, Inc. commits to returning capital through a base dividend of $0.50 per share quarterly. This translates to an annual base dividend of $2.00 per share. The dividend payable on December 29, 2025, was set at that $0.50 per share amount. Beyond the dividend, the company actively reduces share count and debt. In Q3 2025 alone, they repurchased $250 million of stock, which was approximately 8% of outstanding shares, and reduced net debt by $237 million. Liquidity remained strong, totaling $2.2 billion at the end of the third quarter.

The low-cost structure underpins that cash generation. You see this in the unit economics, which are defintely competitive. For the third quarter of 2025, Civitas Resources, Inc. reported cash operating expenses at $9.67 per BOE. That's a significant achievement, representing a seven percent lower Lease Operating Expense (LOE) per BOE compared to the second quarter.

Civitas Resources, Inc. also positions itself as an ESG leader, which is a key non-financial value driver. They have maintained carbon neutrality and zero routine flaring in the DJ Basin. While the prompt mentioned an end-of-2025 target for the Permian, the latest report indicates the commitment is to achieve carbon neutrality in the Permian Basin beginning January 2026. Company-wide, Scope 1 greenhouse gas emissions were reduced by 5.7% in 2024 compared to the 2023 baseline, moving toward the 40% reduction by 2030 goal.

Finally, the assets themselves deliver value through production quality. Civitas Resources, Inc. generates high-quality crude oil production with price premiums to WTI. Specifically for Q3 2025, the company realized an oil price premium to WTI of $0.31/bbl.

Here's a quick look at the key operational and financial metrics supporting these value propositions:

Metric	Value / Period	Source Context
Q3 2025 Adjusted Free Cash Flow	$254 million	Three Months Ended September 30, 2025
Q3 2025 Cash Operating Expenses	$9.67 per BOE	Three Months Ended September 30, 2025
Base Quarterly Dividend	$0.50 per share	Sustained/Declared
Q3 2025 Oil Production	158 MBbl/d	Three Months Ended September 30, 2025
Realized Oil Price Premium to WTI	$0.31/bbl	Q3 2025
Q3 2025 Stock Repurchases	$250 million (approx. 8% of shares)	Three Months Ended September 30, 2025

The commitment to operational efficiency drives the cost structure, which you can see in the production mix and efficiency gains:

• DJ Basin carbon neutrality maintained.
• Permian Basin carbon neutrality targeted for January 2026.
• Scope 1 GHG emissions reduced by 5.7% in 2024.
• Goal to reduce Scope 1 GHG emissions by 40% by 2030.
• LOE per BOE was seven percent lower than Q2 2025.

This focus on execution means the value proposition is grounded in what Civitas Resources, Inc. can control-costs and operational tempo-to deliver on shareholder commitments.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Customer Relationships

Transactional sales activity in late 2025 included the closing of two previously-announced non-core DJ Basin asset divestments, which generated proceeds of $435 million. This activity, which closed around the end of the third quarter 2025, saw all proceeds allocated to debt reduction.

Investor relations are heavily focused on capital return and balance sheet strength, as evidenced by the reinstated capital return strategy following asset sales. The Board approved a quarterly dividend of $0.50 per share, payable on December 29, 2025, to shareholders of record as of December 15, 2025. Transparency is key, with financial updates provided quarterly, such as the Q3 2025 results showing Net income of $177 million and Operating cash flow of $860 million.

Metric	Value/Amount	Period/Context
Capital Return Allocation	50% of free cash flow (after base dividend) to share buybacks	Annualized strategy, reinstated Q2 2025
Capital Return Allocation	50% of free cash flow (after base dividend) to debt reduction	Annualized strategy, reinstated Q2 2025
Share Repurchase Authorization	Increased to $750 million	As of Q2 2025
Accelerated Share Repurchase Completed	$250 million	Q3 2025
Shares Repurchased via ASR	7.4 million shares	Q3 2025
YTD Share Repurchases	Nearly 10% of outstanding shares	As of Q3 2025
Net Debt Reduction	$237 million	Q3 2025
Financial Liquidity	$2.2 billion	End of Q3 2025
Estimated 2025 FCF Yield	22%	Based on estimated $1.1 billion FCF at $70 WTI

Community engagement for the social license to operate in Colorado and Texas centers on educational support. In 2023 & 2024, Civitas Resources, Inc. provided over $400,000 in scholarship aid to graduating seniors across Colorado, Texas, and New Mexico through the Civitas Community Foundation. For 2025, the Civitas Scholars program is being redesigned to partner directly with colleges and universities in Colorado, Texas, and New Mexico.

Direct communication with midstream partners is critical for logistics and cost management. The cost optimization and efficiency initiative targeted $40 million in savings for 2025. These savings are partly derived from securing improved oil differentials through new transportation agreements. Furthermore, the Q1 2025 cost optimization plan explicitly cited expected savings from commercial/midstream opportunities.

Key operational communication points with partners and stakeholders include:

• Securing nearly 60% of second half 2025 oil production with a weighted-average floor of $67 per barrel WTI via hedging.
• Cash operating expenses, including midstream operating expense, totaled $10.19 per barrel of oil equivalent (BOE) in Q2 2025, a more than 10% reduction from Q1 2025.
• Q3 2025 cash operating expenses were lower by 5% to $9.67 per BOE.
• The Company is establishing a methane intensity metric with a companywide reduction target to be completed by 2030.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Channels

You're looking at how Civitas Resources, Inc. gets its product-crude oil and natural gas-to market as of late 2025. The channels are direct sales, leveraging existing midstream infrastructure, and communicating value to the capital markets.

Direct sales to refiners and crude oil purchasers

The primary channel for Civitas Resources, Inc.'s output is direct sale to purchasers, which is reflected in their strong production metrics for the third quarter of 2025. The company's total sales volumes averaged 336 thousand barrels of oil equivalent per day (MBoe/d) for the three months ended September 30, 2025. Crude oil is the primary driver of revenue, with oil volumes reaching 158 thousand barrels of oil per day (MBbl/d) in that same period. The total revenue from crude oil, natural gas, and NGLs for the third quarter of 2025 was $1.2 billion.

Here's a breakdown of the sales volumes by basin for the three months ended September 30, 2025:

Basin/Metric	Total Sales Volumes (MBoe/d)	Oil Volumes (MBbl/d)
Permian Basin	181	86
DJ Basin	155	72

Natural gas sales via pipeline interconnects and processors

For the natural gas component of their sales, Civitas Resources, Inc. relies on pipeline interconnects and processors. Realizations for natural gas liquids (NGLs) were tied to the broader commodity market, averaging 30% of the West Texas Intermediate (WTI) oil price for the third quarter of 2025. Natural gas realizations specifically reflected continued weak Waha pricing during that period. This shows a direct linkage between their gas sales channel performance and specific regional pricing benchmarks.

Long-haul transportation agreements for improved oil differentials

Securing favorable transportation is a key channel lever for maximizing realized prices, especially for crude oil moving from the DJ Basin. Civitas Resources, Inc. explicitly benefited from improved long-haul transportation in the DJ Basin during the third quarter of 2025. This operational improvement contributed to realized oil prices achieving a $0.31 per barrel premium to the average WTI oil price, excluding hedging impacts. The company noted that updated 2025 outlooks factored in improved oil differentials from new transportation agreements.

Investor Relations website and financial press releases

The channel to the investment community is managed through formal disclosures and digital platforms. Civitas Resources, Inc. maintains its Investor Relations presence online at https://ir.civitasresources.com/investor-relations/Overview/default.aspx. The company uses financial press releases to disseminate key operational and financial updates, such as the Q3 2025 results released on November 6, 2025.

Key communication events in 2025 included:

• Fourth Quarter 2024 Earnings and 2025 Outlook Conference Call on February 25, 2025.
• First Quarter 2025 Earnings Conference Call on May 8, 2025.
• Second Quarter 2025 Earnings Conference Call on August 7, 2025.
• A Joint Conference Call with SM Energy Company on November 3, 2025, regarding their merger.

The company's third quarter 2025 earnings webcast, scheduled for November 7, 2025, was cancelled due to the merger announcement. The company repurchased $250 million of its stock in the third quarter of 2025. Finance: draft 13-week cash view by Friday.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Civitas Resources, Inc.'s production as of late 2025. As an independent exploration and production company, Civitas Resources, Inc. primarily sells its output-crude oil, natural gas, and natural gas liquids (NGLs)-into the broader energy commodity market, which is served by the segments you listed.

The company's Q3 2025 results showed that crude oil, natural gas, and NGL revenues totaled $1.2 billion for that quarter alone. Over the trailing twelve months ending September 30, 2025, Civitas Resources, Inc. generated total revenue of $4.71B. This revenue stream is directly tied to the volume and price realized from these customer groups.

For the third quarter of 2025, Civitas Resources, Inc. reported total sales volumes of 336 MBoe/d (thousand barrels of oil equivalent per day), with oil volumes specifically at over 158 MBbl/d. These volumes are what Civitas Resources, Inc. delivers to its direct purchasers, who are typically entities within the following categories:

• Major integrated oil and gas companies (refiners).
• Natural gas utility and power generation companies.
• Midstream and processing companies.

The realized oil price for Civitas Resources, Inc. in Q3 2025 represented a $0.31 per barrel premium to the average West Texas Intermediate (WTI) oil price, which speaks to the quality of the product being sold to these downstream customers.

The final, distinct customer segment for Civitas Resources, Inc. is its capital providers, the shareholders. The company's strategy is heavily focused on maximizing returns for this group through direct capital allocation.

• Institutional and individual shareholders.

In Q3 2025, Civitas Resources, Inc. demonstrated this focus by repurchasing $250 million of its stock, which amounted to approximately 8% of outstanding shares during that quarter. Year-to-date repurchases totaled nearly 10% of outstanding shares. The company also maintained a strong financial liquidity position of $2.2 billion at the end of Q3 2025.

Here's a quick look at some of the key operational and financial metrics that underpin the value delivered to these segments:

Metric	Value (Q3 2025)	Unit/Context
Total Revenue (TTM)	$4.71B	Last Twelve Months
Crude, NGL, Gas Revenue	$1.2 billion	Three Months Ended September 30, 2025
Total Production Volume	336 MBoe/d	Three Months Ended September 30, 2025
Oil Production Volume	Over 158 MBbl/d	Three Months Ended September 30, 2025
Cash Operating Expenses	$9.67 per BOE	Three Months Ended September 30, 2025
Stock Repurchases	$250 million	Third Quarter 2025

The operational efficiency, evidenced by a seven percent reduction in lease operating expenses per BOE compared to Q2 2025, directly impacts the profitability of the commodity sales to the first three customer groups.

Finance: draft 13-week cash view by Friday.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Civitas Resources, Inc.'s operational costs as of late 2025. This is where the cash goes to keep the wells flowing and the balance sheet clean.

Capital expenditures (CapEx) for drilling/completion remained a significant outflow, with reported spending of $491 million for the third quarter of 2025 alone. Year-to-date through September 30, 2025, total capital expenditures reached $1,492 million. This spending reflects continued focus on drilling and completion efficiencies across their basins.

Lease Operating Expenses (LOE) and midstream costs are managed tightly. For the third quarter of 2025, the combined cash operating expenses-which include LOE, midstream, gathering, transportation, and processing-were $9.67 per barrel of oil equivalent (BOE). This represented a five percent reduction in cash operating expenses compared to the prior quarter. Specifically, LOE per BOE saw a seven percent decrease from the second quarter, largely due to production increases and lower fuel and power usage. For context, cash operating expenses were $11.39 per BOE in the first quarter of 2025.

The focus on the balance sheet heavily influences cost management, particularly concerning interest expense on net debt. Civitas Resources was actively working toward its goal of driving net debt to below $4.5 billion by the end of 2025. Net debt stood at $5.32 billion at the end of Q2 2025, and the company reduced this by $237 million during the third quarter of 2025. Total debt on the balance sheet as of September 2025 was reported at $5.13 Billion USD. Interest costs were estimated near $400 million per year as of mid-2025, with $3.7B of the debt accruing at an interest rate greater than 8%, resulting in an interest expense of $114 million in Q2 2025.

General and Administrative (G&A) expenses were controlled, with Q3 2025 Cash G&A reported at $41 million. This figure incorporated $3 million in non-recurring severance charges. Excluding those charges, cash G&A was seven percent lower than the second quarter. The company had previously announced a 10% workforce reduction.

Costs tied to carbon reduction and ESG initiatives are embedded in operations. Civitas applies an internal cost of carbon to screen projects. They maintained carbon neutrality and zero routine flaring in the DJ Basin and committed to achieving both in the Permian Basin starting January 2026. Voluntary initiatives included proactively retrofitting 350 facilities to mitigate spill risk and plugging 42 orphan wells in Colorado.

Here's a quick look at key Q3 2025 financial outflows and metrics:

Cost/Expense Category	Amount/Metric	Period
Capital Expenditures (CapEx)	$491 million	Q3 2025
Cash Operating Expenses (LOE, Midstream, Cash G&A)	$9.67 per BOE	Q3 2025
Cash G&A (Total)	$41 million	Q3 2025
Severance Charges (Included in G&A)	$3 million	Q3 2025
Net Debt Reduction	$237 million	Q3 2025
Total Debt on Balance Sheet	$5.13 Billion USD	September 2025

The company's approach to ESG spending involves specific operational targets and actions:

• Established a methane intensity metric with a reduction target to be completed by 2030.
• Plugged 42 orphan wells in Colorado.
• Retrofit 350 facilities to mitigate spill risk.
• Goal to reduce Scope 1 GHG emissions by 40% by 2030 from a 2023 baseline.

Civitas Resources, Inc. (CIVI) - Canvas Business Model: Revenue Streams

You're looking at how Civitas Resources, Inc. (CIVI) actually brings in the cash flow as of late 2025. It's all about the molecules they pull out of the ground and how they manage the associated price risk. For the third quarter of 2025, the combined revenue from crude oil, natural gas, and NGLs was a solid $1.2 billion. Plus, they locked in some extra value through their risk management program, realizing hedging gains totaling $65 million for that same quarter. That's defintely a key component of their predictable cash generation.

The core of Civitas Resources, Inc.'s revenue streams comes from the physical sale of their produced commodities. Here's the breakdown of those primary sources:

• Sale of crude oil, which totaled $1.2 billion with NGLs and gas in Q3 2025.
• Sale of natural gas liquids (NGLs).
• Sale of natural gas.

To give you a clearer picture of the Q3 2025 performance against the backdrop of their operations, here are the key financial numbers related to their revenue generation activities:

Revenue Component	Q3 2025 Amount	Notes
Crude Oil, NGL, and Gas Revenues	$1.2 billion	Total combined revenue for the period.
Realized Hedging Gains	$65 million	60% of this gain was from crude oil hedges.
Proceeds from Asset Divestitures	$435 million	From the sale of non-core DJ Basin assets.
Operating Cash Flow	$860 million	A measure of cash generated from operations.

Beyond the regular commodity sales, Civitas Resources, Inc. also generates significant, albeit less frequent, revenue from portfolio management activities. Specifically, they closed on the divestiture of two previously-announced non-core DJ Basin assets, bringing in proceeds of $435 million. You see, managing the asset base-selling off less strategic areas-is a deliberate part of their strategy to fund debt reduction.