CIVI - Civitas Resources: The Acquisitions Continue
2024-05-21 08:30:35 ET
Summary
- Civitas Resources expands its presence in Permian through acquisitions of oil and gas assets in the Midland Basin and Delaware Basin.
- Management aims to build a large upstream company quickly through accretive acquisitions.
- Civitas shareholders should not expect much organic growth.
- The lack of operating history of the company as it is currently configured raises the risk of the investment as does the pace of acquisitions.
- The debt ratio appears to be reasonable.
Civitas Resources ( CIVI ) came from the original merger of Bonanza Creek and Extraction Oil and Gas, with another merger hot on the heels of the combination. A previous article went into all the details. Now the company has expanded its presence in the Permian with yet another couple of mergers:
Civitas Resources: The Acquisitions Continue" Civitas closed its previously-announced acquisition of certain oil and gas assets in the Midland Basin from Vencer Energy, LLC ("Vencer Energy") in January 2024 and assumed operatorship ahead of schedule in April. The Company assumed operatorship of its Delaware Basin assets in February 2024."