Civitas Enters Permian Basin With A Pair Of Acquisitions

Prior to Tuesday, Civitas Resources
CIVI
billed itself on its website as “Colorado’s largest pure play oil and gas producer,” with assets focused in the state’s Denver-Julesberg Basin. As of Wednesday, that description will need changing, after the company entered into two purchase agreements totaling $4.7 billion as an entry point into both the Midland and Delaware sub-basins of the greater Permian Basin. Once the transactions are completed, Civitas will need to add New Mexico and Texas to the list of states in which it has operations.

Civitas announced Tuesday that it will acquire both Hibernia Energy III and Tap Rock Resources from private equity sponsor NGP for $2.25 billion and $2.45 billion, respectively. The transactions are expected to close during Q3, 2023, with an effective date of July 1, according to Civitas’s release. The deals will add combined proved reserves of approximately 335 MMBoe, as of year-end 2022, and 68,000 net acres, roughly 90% of which is currently held by production to Civitas’s holdings. The combined acquisitions were almost equal to Civitas’s current market cap of roughly $5 billion.