Civitas Resources Forays Into Permian Basin Through ~$5B Assets Buyout
Portfolio Pulse from Lekha Gupta
Civitas Resources (NYSE:CIVI) has signed two agreements to acquire oil-producing assets in the Midland and Delaware Basins for a combined price of around $4.7 billion. The acquisition is expected to boost CIVI's production by 60% and generate around $1.1 billion of pro forma FCF in 2024.
June 20, 2023 | 11:40 am
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Civitas Resources' acquisition of oil-producing assets in the Midland and Delaware Basins for $4.7 billion is expected to boost production by 60% and generate around $1.1 billion of pro forma FCF in 2024.
The acquisition of oil-producing assets in the Midland and Delaware Basins will significantly increase Civitas Resources' production capacity and generate substantial free cash flow in the coming years. This is likely to have a positive impact on the company's stock price in the short term as investors may view the acquisition as a strategic move to expand the company's operations and improve its financial performance.
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