Measurable targets, proven performance, and transparency reflect Company's commitment to responsible operations
Civitas Resources, Inc. (NYSE:CIVI) ("Civitas" or the "Company") today published its 2024 Corporate Sustainability Report, providing transparency around the Company's sustainability initiatives, targets, and progress toward stated goals. This is the first sustainability report following Civitas' entry into the Permian Basin and includes a pathway for how the larger, more diversified company will achieve its updated targets.
"In 2023, we transformed our company through strategic acquisitions, creating a stronger, more durable, and balanced Civitas, without sacrificing our commitment to sustainability," said Chris Doyle, Civitas CEO. "We're working as a team to advance carbon neutrality, emissions reduction, safety, and stakeholder engagement across our portfolio. Our sustainability report demonstrates a track record of the Company's progress and shows how Civitas will continue to innovate and improve in 2024 and beyond."
Civitas was originally founded as a DJ Basin operator and in 2021 became Colorado's first carbon neutral operator. In 2023, the Company expanded into the prolific Permian Basin, doubling its overall scale and size. Civitas' latest corporate sustainability report shows how the Company successfully executes on its mission to "disrupt energy for good" by minimizing environmental impacts, prioritizing employees and local communities, and enhancing its sustainability governance practices.
Highlights from the report include:
- Reduced emissions: Achieved 41% reduction in greenhouse gas emission intensity across its DJ Basin assets from 2019 to 2023, in part, by retrofitting approximately 10,000 pneumatic devices
- Delivered on voluntary initiatives: Plugged 19 orphan wells in Colorado in 2023 with 24 more in-progress for 2024 reducing emissions and helping to return acreage to surface owners
- Continued commitment to carbon neutrality: Achieved zero routine flaring and maintained carbon neutrality(1) in its DJ Basin assets; committed to achieve both in the Permian Basin(2)
- Proven safety performance: Had a combined Total Recordable Incident Rate(3) of 0.23 in 2023 — beating our 2023 safety performance target
- Updated targets: Published updated targets, inclusive of the Company's recently acquired Permian Basin assets including, but not limited to, a corporate 40% absolute emission reduction and a Permian Basin pneumatic emission reduction of 65%, both by 2030
(1) |
Carbon neutrality refers to the purchase of verified carbon credits and renewable energy certificates in an amount that offsets emissions |
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(2) |
Carbon neutrality will begin the January after the first calendar year of operational control of any acquisition, and Civitas has aligned its Permian Basin assets with the World Bank's Zero Routine Flaring by 2030 Initiative |
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(3) |
Per OSHA 29 CFR Part 1904, incidence rate of injuries and illnesses computed as the number of recordable injuries and illnesses X 200,000 / hours worked |
Readers can access the 2024 Corporate Sustainability Report on Civitas' website here: Civitas/Sustainability.
Forward-Looking Statements and Cautionary Statements
Certain statements in this press release concerning future opportunities for Civitas, future financial performance and condition, guidance, and any other statements regarding Civitas' future expectations, beliefs, plans, objectives, financial conditions, returns to shareholders, assumptions, or future events or performance that are not historical facts are "forward-looking" statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "would," "potential," "may," "might," "anticipate," "likely," "plan," "positioned," "strategy," and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. Specific forward-looking statements included in this press release include statements regarding the Company's plans with respect to carbon neutrality and emissions reduction. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, Civitas' future financial condition, results of operations, strategy and plans; the ability of Civitas to realize anticipated synergies related to Civitas' recent acquisitions in the timeframe expected or at all; changes in capital markets and the ability of Civitas to finance operations in the manner expected; the effects of commodity prices; the risks of oil and gas activities; and the fact that operating costs and business disruption may be greater than expected. Additionally, risks and uncertainties that could cause actual results to differ materially from those anticipated also include: declines or volatility in the prices we receive for our oil, natural gas, and natural gas liquids; general economic conditions, whether internationally, nationally, or in the regional and local market areas in which we do business, including any future economic downturn, the impact of continued or further inflation, disruption in the financial markets, and the availability of credit on acceptable terms; the Company's ability to identify and select possible additional acquisition and disposition opportunities; the effects of disruption of our operations or excess supply of oil and natural gas due to world health events, and the actions by certain oil and natural gas producing countries, including Russia; the ability of our customers to meet their obligations to us; our access to capital on acceptable terms; our ability to generate sufficient cash flow from operations, borrowings, or other sources to enable us to fully develop our undeveloped acreage positions; our ability to continue to pay dividends at their current level or at all; the presence or recoverability of estimated oil and natural gas reserves and the actual future sales volume rates and associated costs; uncertainties associated with estimates of proved oil and gas reserves; the possibility that the industry may be subject to future local, state, and federal regulatory or legislative actions (including additional taxes and changes in environmental, health and safety regulation and regulations addressing climate change); environmental, health and safety risks; seasonal weather conditions, as well as severe weather and other natural events caused by climate change; lease stipulations; drilling and operating risks, including the risks associated with the employment of horizontal drilling and completion techniques; our ability to acquire adequate supplies of water for drilling and completion operations; the availability of oilfield equipment, services, and personnel; exploration and development risks; operational interruption of centralized oil and natural gas processing facilities; competition in the oil and natural gas industry; management's ability to execute our plans to meet our goals; unforeseen difficulties encountered in operating in new geographic areas; our ability to attract and retain key members of our senior management and key technical employees; our ability to maintain effective internal controls; access to adequate gathering systems and pipeline take-away capacity; our ability to secure adequate processing capacity for natural gas we produce, to secure adequate transportation for oil, natural gas, and natural gas liquids we produce, and to sell the oil, natural gas, and natural gas liquids at market prices; costs and other risks associated with perfecting title for mineral rights in some of our properties; potential impacts following the result of the upcoming presidential election in the United States, including volatility in the political, legal, and regulatory environments; political conditions in or affecting other producing countries, including conflicts or hostilities in or relating to the Middle East (including the current events related to the Israel-Palestine conflict), South America, Russia (including the current events involving Russia and Ukraine), and the Red Sea, and other sustained military campaigns or acts of terrorism or sabotage and the effects therefrom; the effects of any pandemic or other global health epidemic; other economic, competitive, governmental, legislative, regulatory, geopolitical, and technological factors that may negatively impact our businesses, operations, or pricing; and disruptions to our business due to acquisitions and other significant transactions. Expectations regarding business outlook, including changes in revenue, pricing, capital expenditures, cash flow generation, strategies for our operations, oil and natural gas market conditions, legal, economic, and regulatory conditions, and environmental matters are only forecasts regarding these matters.
Additional information concerning other factors that could cause results to differ materially from those described above can be found under Item 1A. "Risk Factors" and "Management's Discussion and Analysis" sections in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, subsequently filed Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings made with the Securities and Exchange Commission.
All forward-looking statements speak only as of the date they are made and are based on information available at the time they were made. The Company assumes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
About Civitas
Civitas Resources, Inc. is an independent exploration and production company focused on the acquisition, development, and production of crude oil and liquids-rich natural gas from its premier assets in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico. Civitas' proven business model to maximize shareholder returns is focused on four key strategic pillars: generating significant free cash flow, maintaining a premier balance sheet, returning capital to shareholders, and demonstrating ESG leadership. For more information about Civitas, please visit www.civitasresources.com.
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