Civitas Resources (CIVI) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

COVER PAGE

COVER PAGE - shares	6 Months Ended
	Jun. 30, 2022	Aug. 01, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-35371
Entity Registrant Name	Civitas Resources, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	61-1630631
Entity Address, Address Line One	555 17th Street,
Entity Address, Address Line Two	Suite 3700
Entity Address, City or Town	Denver,
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	293-9100
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CIVI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		85,031,963
Entity Central Index Key	0001509589
Amendment Flag	false
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 439,251	$ 254,454
Accounts receivable, net:
Oil, natural gas, and NGL sales	432,694	362,262
Joint interest and other	95,253	66,390
Prepaid expenses and other	31,064	21,052
Inventory of oilfield equipment	21,195	12,386
Derivative assets	0	3,393
Total current assets	1,019,457	719,937
Property and equipment (successful efforts method):
Proved properties	6,132,620	5,457,213
Less: accumulated depreciation, depletion, and amortization	(803,774)	(430,201)
Total proved properties, net	5,328,846	5,027,012
Unproved properties	666,821	688,895
Wells in progress	303,071	177,296
Other property and equipment, net of accumulated depreciation of $6,072 in 2022 and $4,742 in 2021	50,243	51,639
Total property and equipment, net	6,348,981	5,944,842
Right-of-use assets	31,487	39,885
Deferred income tax assets	0	22,284
Other noncurrent assets	14,505	14,085
Total assets	7,414,430	6,741,033
Current liabilities:
Accounts payable and accrued expenses	306,270	246,188
Production taxes payable	303,182	144,408
Oil and natural gas revenue distribution payable	494,091	466,233
Lease liability	17,452	18,873
Derivative liability	278,600	219,804
Income tax payable	50,385	0
Asset retirement obligations	24,000	24,000
Total current liabilities	1,473,980	1,119,506
Long-term liabilities:
Senior notes	392,508	491,710
Lease liability	14,576	21,398
Ad valorem taxes	186,603	232,147
Derivative liability	43,225	19,959
Deferred income tax liabilities	107,884	0
Asset retirement obligations	203,104	201,315
Total liabilities	2,421,880	2,086,035
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock, $.01 par value, 25,000,000 shares authorized, none outstanding	0	0
Common stock, $.01 par value, 225,000,000 shares authorized, 85,031,963 and 84,572,846 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	4,917	4,912
Additional paid-in capital	4,197,790	4,199,108
Retained earnings	789,843	450,978
Total stockholders’ equity	4,992,550	4,654,998
Total liabilities and stockholders’ equity	$ 7,414,430	$ 6,741,033

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Other property and equipment, accumulated depreciation	$ 6,072	$ 4,742
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	225,000,000	225,000,000
Common stock, shares issued (in shares)	85,031,963	84,572,846
Common stock, shares outstanding (in shares)	85,031,963	84,572,846

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating net revenues:
Oil, natural gas, and NGL sales	$ 1,151,364,000	$ 156,035,000	$ 1,969,174,000	$ 230,194,000
Operating expenses:
Lease operating expense	41,877,000	11,358,000	77,896,000	17,089,000
Severance and ad valorem taxes	85,870,000	9,813,000	149,174,000	14,417,000
Exploration	1,553,000	3,547,000	2,081,000	3,643,000
Depreciation, depletion, and amortization	204,519,000	35,006,000	389,379,000	53,829,000
Abandonment and impairment of unproved properties	0	2,215,000	17,975,000	2,215,000
Unused commitments	1,731,000	4,328,000	2,507,000	4,328,000
Bad debt expense	4,000	0	4,000	0
Merger transaction costs	1,418,000	18,246,000	21,952,000	21,541,000
General and Administrative Expense	29,666,000	12,144,000	65,386,000	21,395,000
Total operating expenses	453,626,000	114,624,000	869,457,000	165,296,000
Other income (expense):
Derivative loss	(72,650,000)	(73,970,000)	(368,143,000)	(97,389,000)
Interest expense	(8,116,000)	(3,241,000)	(17,182,000)	(3,660,000)
Gain on property transactions, net	0	0	16,797,000	0
Other income	4,313,000	89,000	5,096,000	277,000
Total other expense	(76,453,000)	(77,122,000)	(363,432,000)	(100,772,000)
Income (loss) from operations before income taxes	621,285,000	(35,711,000)	736,285,000	(35,874,000)
Income tax benefit (expense)	(152,464,000)	10,392,000	(175,825,000)	10,436,000
Net income (loss), basic	468,821,000	(25,319,000)	560,460,000	(25,438,000)
Net income (loss), diluted	468,821,000	(25,319,000)	560,460,000	(25,438,000)
Comprehensive income (loss)	$ 468,821,000	$ (25,319,000)	$ 560,460,000	$ (25,438,000)
Net income (loss) per common share:
Basic (in dollars per share)	$ 5.52	$ (0.83)	$ 6.60	$ (0.99)
Diluted (in dollars per share)	$ 5.48	$ (0.83)	$ 6.56	$ (0.99)
Weighted-average common shares outstanding
Basic (in shares)	84,993	30,655	84,917	25,774
Diluted (in shares)	85,554	30,655	85,453	25,774
Midstream operating expense
Operating expenses:
Operating expenses	$ 7,469,000	$ 4,246,000	$ 13,181,000	$ 8,151,000
Gathering, transportation, and processing
Operating expenses:
Operating expenses	$ 79,519,000	$ 13,721,000	$ 129,922,000	$ 18,688,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
General and administrative expense, stock-based compensation	$ 6,135	$ 2,195	$ 14,225	$ 3,807

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings
Balance at beginning of period (in shares) at Dec. 31, 2020		20,839,227
Balance at beginning of period at Dec. 31, 2020	$ 1,045,252	$ 4,282	$ 707,209	$ 333,761
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted common stock issued (in shares)		109
Stock used for tax withholdings (in shares)		(38)
Exercise of stock options (in shares)		429
Exercise of stock options	15		15
Stock-based compensation	1,612		1,612
Net income (loss)	(119)			(119)
Balance at end of period (in shares) at Mar. 31, 2021		20,839,727
Balance at end of period at Mar. 31, 2021	1,046,760	$ 4,282	708,836	333,642
Balance at beginning of period (in shares) at Dec. 31, 2020		20,839,227
Balance at beginning of period at Dec. 31, 2020	1,045,252	$ 4,282	707,209	333,761
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(25,438)
Balance at end of period (in shares) at Jun. 30, 2021		30,844,625
Balance at end of period at Jun. 30, 2021	1,385,114	$ 4,378	1,083,446	297,290
Balance at beginning of period (in shares) at Mar. 31, 2021		20,839,727
Balance at beginning of period at Mar. 31, 2021	1,046,760	$ 4,282	708,836	333,642
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance pursuant to acquisition (in shares)		9,802,166
Issuance pursuant to acquisition	374,933	$ 98	374,835
Restricted common stock issued (in shares)		261,539
Stock used for tax withholdings (in shares)		(70,330)
Stock used for tax withholdings	(2,816)	$ (2)	(2,814)
Exercise of stock options (in shares)		11,523
Exercise of stock options	394		394
Stock-based compensation	2,195		2,195
Cash dividends and Dividends declared	(11,033)			(11,033)
Net income (loss)	(25,319)			(25,319)
Balance at end of period (in shares) at Jun. 30, 2021		30,844,625
Balance at end of period at Jun. 30, 2021	1,385,114	$ 4,378	1,083,446	297,290
Balance at beginning of period (in shares) at Dec. 31, 2021		84,572,846
Balance at beginning of period at Dec. 31, 2021	4,654,998	$ 4,912	4,199,108	450,978
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted common stock issued (in shares)		579,229
Restricted common stock issued	6	$ 6
Stock used for tax withholdings (in shares)		(215,811)
Stock used for tax withholdings	(12,934)	$ (2)	(12,932)
Exercise of stock options (in shares)		5,294
Exercise of stock options	178		178
Stock-based compensation	8,090		8,090
Cash dividends and Dividends declared	(104,444)			(104,444)
Net income (loss)	91,639			91,639
Balance at end of period (in shares) at Mar. 31, 2022		84,941,558
Balance at end of period at Mar. 31, 2022	4,637,533	$ 4,916	4,194,444	438,173
Balance at beginning of period (in shares) at Dec. 31, 2021		84,572,846
Balance at beginning of period at Dec. 31, 2021	4,654,998	$ 4,912	4,199,108	450,978
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	560,460
Balance at end of period (in shares) at Jun. 30, 2022		85,031,963
Balance at end of period at Jun. 30, 2022	4,992,550	$ 4,917	4,197,790	789,843
Balance at beginning of period (in shares) at Mar. 31, 2022		84,941,558
Balance at beginning of period at Mar. 31, 2022	4,637,533	$ 4,916	4,194,444	438,173
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted common stock issued (in shares)		130,309
Restricted common stock issued	1	$ 1
Stock used for tax withholdings (in shares)		(40,646)
Stock used for tax withholdings	(2,813)		(2,813)
Exercise of stock options (in shares)		742
Exercise of stock options	24		24
Stock-based compensation	6,135		6,135
Cash dividends and Dividends declared	(117,151)			(117,151)
Net income (loss)	468,821			468,821
Balance at end of period (in shares) at Jun. 30, 2022		85,031,963
Balance at end of period at Jun. 30, 2022	$ 4,992,550	$ 4,917	$ 4,197,790	$ 789,843

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 1.3625	$ 1.2125	$ 0.3500

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)		$ 560,460,000	$ (25,438,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, and amortization		389,379,000	53,829,000
Deferred income tax expense (benefit)		125,440,000	(10,228,000)
Abandonment and impairment of unproved properties		17,975,000	2,215,000
Stock-based compensation		14,225,000	3,807,000
Amortization of deferred financing costs		2,180,000	526,000
Derivative loss		368,143,000	97,389,000
Derivative cash settlements loss		(348,209,000)	(23,990,000)
Gain on property transactions, net		(16,797,000)	0
Other		155,000	(35,000)
Changes in current assets and liabilities:
Accounts receivable, net		(32,776,000)	(14,686,000)
Prepaid expenses and other assets		(6,579,000)	2,500,000
Accounts payable and accrued liabilities		192,839,000	(3,428,000)
Settlement of asset retirement obligations		(11,667,000)	(2,902,000)
Net cash provided by operating activities		1,254,768,000	79,559,000
Cash flows from investing activities:
Acquisition of oil and natural gas properties		(303,602,000)	(549,000)
Cash acquired		44,310,000	49,827,000
Exploration and development of oil and natural gas properties		(467,186,000)	(57,269,000)
Purchases of carbon offsets		(7,196,000)	0
Proceeds from (additions to) other property and equipment		66,000
Proceeds from (additions to) other property and equipment			(38,000)
Other		117,000	0
Net cash used in investing activities		(733,491,000)	(8,029,000)
Cash flows from financing activities:
Proceeds from credit facility		100,000,000	155,000,000
Payments to credit facility		(100,000,000)	(210,000,000)
Redemption of senior notes		(100,000,000)	0
Proceeds from exercise of stock options		202,000	409,000
Dividends paid		(219,768,000)	(10,789,000)
Payment of employee tax withholdings in exchange for the return of common stock		(15,740,000)	(2,816,000)
Deferred financing costs		(1,174,000)	(3,653,000)
Other		0	(21,000)
Net cash used in financing activities		(336,480,000)	(71,870,000)
Net change in cash, cash equivalents, and restricted cash		184,797,000	(340,000)
Cash, cash equivalents, and restricted cash:
Beginning of period		254,556,000	24,845,000
End of period	[1]	439,353,000	24,505,000
Supplemental cash flow disclosure:
Cash paid for interest		(15,821,000)	(87,000)
Cash paid for income taxes		(6,300,000)	0
Changes in working capital related to drilling expenditures		$ (2,666,000)	$ (16,285,000)
[1] (1) Includes $0.1 million of restricted cash and consists of funds for road maintenance and repairs that is presented in other noncurrent assets within the accompanying unaudited condensed consolidated balance sheets (“balance sheets”) as of June 30, 2022 and 2021.

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Statement of Cash Flows [Abstract]
Restricted cash included in other noncurrent assets	$ 0.1	$ 0.1

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Operations When we use the terms “Civitas,” the “Company,” “we,” “us,” or “our,” we are referring to Civitas Resources, Inc. and its consolidated subsidiaries unless the context otherwise requires. Effective November 1, 2021, Bonanza Creek Energy, Inc. changed its name to Civitas Resources, Inc. Civitas is an independent Denver-based exploration and production company focused on the acquisition, development, and production of oil and associated liquids-rich natural gas in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg Basin (“DJ Basin”). Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Regulation S-X. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. All significant intercompany balances and transactions have been eliminated in consolidation. The December 31, 2021 unaudited condensed consolidated balance sheet data has been derived from the audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“ 2021 Form 10-K ”), but does not include all disclosures, including notes required by GAAP. As such, this quarterly report should be read in conjunction with the audited consolidated financial statements and related notes included in our 2021 Form 10-K . In connection with the preparation of the unaudited condensed consolidated financial statements, the Company evaluated subsequent events after the balance sheet date of June 30, 2022, through the filing date of this report. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year or any other future period. Significant Accounting Policies The significant accounting policies followed by the Company are set forth in Note 1 - Summary of Significant Accounting Policies in the 2021 Form 10-K and are supplemented by the notes to the unaudited condensed consolidated financial statements included in this report. Recently Issued and Adopted Accounting Standards In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), which provides temporary optional guidance to companies impacted by the transition away from the LIBOR. The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. Further, in January 2021, the FASB issued Update No. 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. These amendments are effective upon issuance and expire on December 31, 2022. We do not anticipate a material impact on the Company’s consolidated financial statements or related disclosures.

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS AND DIVESTITURES	ACQUISITIONS AND DIVESTITURES All mergers and acquisitions disclosed were accounted for under the acquisition method of accounting for business combinations. Accordingly, we conducted assessments of the net assets acquired and recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while transaction and integration costs associated with the acquisition were expensed as incurred. The fair value measurements of assets acquired and liabilities assumed were based on inputs that are not observable in the market, and therefore represent Level 3 inputs. The fair values of crude oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation of proved oil properties include estimates of reserves, future operating and development costs, future commodity prices, estimated future cash flows, and a market-based weighted-average cost of capital. These inputs required significant judgments and estimates by management at the time of the valuation. HighPoint Merger On April 1, 2021, Civitas acquired HighPoint Resources Corporation (“HighPoint”), pursuant to the terms of HighPoint’s prepackaged plan of reorganization under Chapter 11 of the United States Bankruptcy Code (the “Prepackaged Plan”), which was confirmed by the U.S. Bankruptcy Court for the District of Delaware (the “HighPoint Merger”). Each eligible share of common stock of HighPoint issued and outstanding was automatically converted into the right to receive 0.11464 shares of common stock of Civitas (“Civitas Common Stock”). As a result, Civitas issued 487,952 shares of Civitas Common Stock to former HighPoint stockholders. Concurrently with the HighPoint Merger and pursuant to the Prepackaged Plan, in exchange for the aggregate principal amount outstanding of HighPoint Operating Corporation's senior notes, Civitas issued an aggregate of (i) 9,314,214 shares of Civitas Common Stock and (ii) $100.0 million aggregate principal amount of 7.5% Senior Notes due 2026 (“7.5% Senior Notes”). Please refer to Note 5 - Long-Term Debt for further discussion of the 7.5% Senior Notes. Total merger consideration transferred under the HighPoint Merger was $474.9 million. Extraction Merger On November 1, 2021, Civitas completed its merger with Extraction Oil & Gas, Inc. (“Extraction”), pursuant to the terms of the related Agreement and Plan of Merger (the “Extraction Merger Agreement”) (the “Extraction Merger”). Pursuant to the Extraction Merger Agreement, each share of common stock of Extraction (the “Extraction Common Stock”) issued and outstanding was converted into the right to receive 1.1711 shares of Civitas Common Stock for each share of Extraction Common Stock (the “Extraction Exchange Ratio”). Additionally, each unvested award of restricted stock units issued pursuant to Extraction’s 2021 Long Term Incentive Plan (the “Extraction Equity Plan”) was assumed by Civitas and converted into a number of restricted stock units with respect to shares of Civitas Common Stock (such restricted stock unit, a “Converted RSU”) using the Extraction Exchange Ratio. Each Converted RSU continued to be governed by the same terms and conditions that were applicable immediately prior to the Extraction Merger closing date. In addition, Converted RSUs subject to performance-based vesting conditions held by certain Extraction executives provided certain accelerated vesting clauses in the event that such individual’s employment is terminated on or within twelve months following November 1, 2021. Further, Civitas executed warrant agreements to replace the warrants previously issued by Extraction consisting of (i) 3.4 million Tranche A warrants to purchase Civitas Common Stock at an exercise price of $91.91 in whole or in part, at any time or from time to time on or before January 20, 2025, issued pursuant to a warrant agreement by and between Civitas and Broadridge Corporate Issuer Solutions, Inc., as warrant agent (“Broadridge”), dated as of November 1, 2021 (the “Tranche A Warrants”), and (ii) 1.7 million Tranche B warrants to purchase Civitas Common Stock at an exercise price of $104.45 in whole or in part, at any time or from time to time on or before (i) January 20, 2026, issued pursuant to a warrant agreement by and between Civitas and Broadridge, as warrant agent, dated as of November 1, 2021 (the “Tranche B Warrants,” and, together with the Tranche A Warrants, the “Warrants”)). A holder of a warrant, in its capacity as such, is not entitled to any rights whatsoever as a stockholder of Civitas, except to the extent expressly provided in the applicable warrant agreement. Please refer to Note 8 - Fair Value Measurements f or further discussion. Total merger consideration transferred under the Extraction Merger was $1.8 billion. The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Extraction Merger: Preliminary Purchase Price Allocation (in thousands) Assets Acquired Cash and cash equivalents $ 106,360 Accounts receivable - oil and natural gas sales 119,585 Accounts receivable - joint interest and other 33,054 Prepaid expenses and other 3,044 Inventory of oilfield equipment 9,291 Derivative assets 5,834 Proved properties 1,876,014 Unproved properties 193,400 Other property and equipment, net of accumulated depreciation 40,068 Right-of-use assets 6,883 Deferred income tax assets 49,194 Other noncurrent assets 4,248 Total assets acquired $ 2,446,975 Liabilities Assumed Accounts payable and accrued expenses $ 90,353 Production taxes payable 63,572 Oil and natural gas revenue distribution payable 170,002 Income tax payable 14,000 Lease liability 6,883 Derivative liability 100,474 Ad valorem taxes 87,071 Asset retirement obligations 68,741 Other noncurrent liabilities 1,750 Total liabilities assumed 602,846 Net assets acquired $ 1,844,129 The valuation of proved properties for the Extraction Merger applied a market-based weighted-average cost of capital rate of approximately 10%. The purchase price allocation is preliminary, and Civitas is continuing to assess the fair values of certain of the assets acquired and liabilities assumed in the Extraction Merger as adjustments may be made to these measurements in subsequent periods (up to one year from the acquisition date). In particular, assets and liabilities subject to potential adjustment, in amounts that could be material to the pro forma financial statements, include, but are not limited to, proved properties, unproved properties, and accounts payable and accrued expenses related to our continued assessment over the application of lease contracts and related deductions. We cannot reasonably estimate the impact of such conclusions as there is still a high level of uncertainty regarding the potential outcomes of the assessment. Crestone Peak Merger On November 1, 2021, Civitas completed its merger with CPPIB Crestone Peak Resources America Inc. (“Crestone Peak”), pursuant to the terms of the related Agreement and Plan of Merger (the “Crestone Merger Agreement”) (the “Crestone Peak Merger”). Pursuant to the Crestone Merger Agreement, the shares of Crestone Peak common stock were converted into the right to collectively receive 22.5 million shares of Civitas Common Stock, representing total merger consideration of $1.3 billion. The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Crestone Peak Merger: Preliminary Purchase Price Allocation (in thousands) Assets Acquired Cash and cash equivalents $ 67,505 Accounts receivable - oil and natural gas sales 81,340 Accounts receivable - joint interest and other 9,917 Prepaid expenses and other 2,929 Inventory of oilfield equipment 11,951 Proved properties 1,797,814 Unproved properties 453,321 Other property and equipment, net of accumulated depreciation 7,980 Right-of-use assets 7,934 Total assets acquired $ 2,440,691 Liabilities Assumed Accounts payable and accrued expenses $ 134,791 Production taxes payable 52,435 Oil and natural gas revenue distribution payable 83,950 Lease liability 7,934 Derivative liability 338,383 Credit facility 280,000 Ad valorem taxes 66,913 Deferred income tax liabilities 125,086 Asset retirement obligations 88,949 Total liabilities assumed 1,178,441 Net assets acquired $ 1,262,250 The valuation of proved properties for the Crestone Peak Merger applied a market-based weighted-average cost of capital rate of approximately 10%. The purchase price allocation is preliminary, and Civitas is continuing to assess the fair values of certain of the assets acquired and liabilities assumed in the Crestone Peak Merger as adjustments may be made to these measurements in subsequent periods (up to one year from the acquisition date). In particular, assets and liabilities subject to potential adjustment, in amounts that could be material to the pro forma financial statements, include, but are not limited to, proved properties, unproved properties, and accounts payable and accrued expenses related to our continued assessment over the application of lease contracts and related deductions. We cannot reasonably estimate the impact of such conclusions as there is still a high level of uncertainty regarding the potential outcomes of the assessment. Revenue and earnings of the acquiree The amount of revenue of HighPoint included in our statement of operations during the three and six months ended June 30, 2021 was $74.7 million for both periods as the HighPoint Merger was completed on April 1, 2021. There was no revenue included in our statement of operations during the three and six months ended June 30, 2021 related to the Extraction and Crestone Peak mergers as both mergers were completed after June 30, 2021. We determined that disclosing the amount of HighPoint, Extraction, and Crestone Peak related earnings included in the unaudited condensed consolidated statements of operations and comprehensive income (“statements of operations”) is impracticable, as the operations from these mergers were integrated into the operations of the Company from the dates of each acquisition. Supplemental pro forma financial information The following unaudited pro forma financial information (in thousands, except per share amounts) represents a summary of the condensed consolidated results of operations for the three and six months ended June 30, 2021, assuming the HighPoint, Extraction, and Crestone Peak mergers had been completed as of January 1, 2020. The pro forma financial information is not necessarily indicative of the results of operations that would have been achieved if the mergers had been effective as of this date, or of future results, and includes certain non-recurring pro forma adjustments that were directly attributable to the business combinations (in thousands, except per share amounts). Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Total revenue $ 527,794 $ 1,093,110 Net income (loss) (101,825) 756,271 Net income (loss) per common share - basic $ (1.21) $ 8.98 Net income (loss) per common share - diluted $ (1.21) $ 8.94 Bison Acquisition On March 1, 2022, the Company completed the acquisition of privately held DJ Basin operator Bison Oil & Gas II, LLC (“Bison”) for merger consideration of approximately $279.7 million (the “Bison Acquisition”). Net assets acquired under the preliminary purchase price allocation were $294.2 million and consequently resulted in a bargain purchase gain of $14.5 million. Because of the immateriality of the Bison Acquisition, the related revenue and earnings, supplemental pro forma financial information, and detailed purchase price allocation are not disclosed. Merger transaction costs Merger transaction costs related to the aforementioned mergers and acquisitions are accounted for separately from the assets acquired and liabilities assumed and are included in merger transaction costs in the statements of operations. The Company incurred merger transaction costs of $1.4 million and $18.2 million during the three months ended June 30, 2022 and 2021, respectively, and $22.0 million and $21.5 million during the six months ended June 30, 2022 and 2021, respectively. Merger transaction costs include zero and $1.1 million of severance payments for the three months ended June 30, 2022 and 2021, respectively, and $7.6 million and $1.1 million of severance payments for the six months ended June 30, 2022 and 2021, respectively.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION Oil, natural gas, and natural gas liquid (“NGL”) sales revenue presented within the accompanying statements of operations is reflective of the revenue generated from contracts with customers. Revenue attributable to each identified revenue stream is disaggregated below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating net revenues: Oil sales $ 778,258 $ 116,091 $ 1,327,760 $ 166,155 Natural gas sales 205,840 15,168 319,001 28,300 NGL sales 167,266 24,776 322,413 35,739 Oil, natural gas, and NGL sales $ 1,151,364 $ 156,035 $ 1,969,174 $ 230,194 The Company recognizes revenue from the sale of produced oil, natural gas, and NGL at the point in time when control of produced oil, natural gas, or NGL volumes transfer to the purchaser, which may differ depending on the applicable contractual terms. The Company considers the transfer of control to have occurred when the purchaser has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the oil, natural gas, or NGL production. Transfer of control dictates the presentation of gathering, transportation, and processing expenses within the accompanying statements of operations. Gathering, transportation, and processing expenses incurred by the Company prior to the transfer of control are recorded gross within the gathering, transportation, and processing line item on the accompanying statements of operations. Conversely, gathering, transportation, and processing expenses incurred by the Company subsequent to the transfer of control are recorded net within the oil, natural gas, and NGL sales line item on the accompanying statements of operations. Please refer to Note 1 - Summary of Significant Accounting Policies in the 2021 Form 10-K for more information regarding the types of contracts under which oil, gas, and NGL sales revenue is generated. The Company records revenue in the month production is delivered and control is transferred to the purchaser. However, settlement statements and payment may not be received for 30 to 60 days after the date production is delivered and control is transferred. Until such time settlement statements and payment are received, the Company records a revenue accrual based on, amongst other factors, an estimate of the volumes delivered at estimated prices as determined by the applicable contractual terms. The Company records the differences between its estimates and the actual amounts received for product sales in the month in which payment is received from the purchaser. For the three and six months ended June 30, 2022 and 2021, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was insignificant. At June 30, 2022 and December 31, 2021, the Company's receivables from contracts with customers were $432.7 million and $362.3 million, respectively.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses contain the following as of the dates indicated (in thousands): June 30, 2022 December 31, 2021 Accounts payable trade $ 12,166 $ 19,623 Accrued drilling and completion costs 132,096 129,430 Accrued lease operating expense and gathering, transportation, and processing 80,834 19,077 Accrued general and administrative expense 13,973 21,163 Accrued merger transaction costs 2,199 1,475 Accrued oil and NGL hedging 44,730 26,601 Accrued interest expense 5,484 6,303 Accrued settlement 10,291 20,791 Other accrued expenses 4,497 1,725 Total accounts payable and accrued expenses $ 306,270 $ 246,188

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT 5.0% Senior Notes On October 13, 2021, the Company issued $400.0 million aggregate principal amount of 5.0% Senior Notes due 2026 (the “5.0% Senior Notes”) pursuant to an indenture (the “5.0% Indenture”), among Civitas Resources, Wells Fargo Bank, National Association, as trustee, and the guarantors party thereto. The Company used the net proceeds and cash on hand to repay all borrowings under the Credit Facility (as defined below), all borrowings outstanding under the Crestone Peak credit facility, and for general corporate purposes. Interest accrues at the rate of 5.0% per annum and is payable semiannually in arrears on April 15 and October 15 of each year. Payments commenced on April 15, 2022. The 5.0% Indenture contains covenants that limit, among other things, the Company’s ability to: (i) incur or guarantee additional indebtedness; (ii) create liens securing indebtedness; (iii) pay dividends on or redeem or repurchase stock or subordinated debt; (iv) make specified types of investments and acquisitions; (v) enter into or permit to exist contractual limits on the ability of the Company’s subsidiaries to pay dividends to Civitas Resources; (vi) enter into transactions with affiliates; and (vii) sell assets or merge with other companies. These covenants are subject to a number of important limitations and exceptions. The Company was in compliance with all covenants under the 5.0% Indenture as of June 30, 2022, and through the filing of this report. In addition, certain of these covenants will be terminated before the 5.0% Senior Notes mature if at any time no default or event of default exists under the 5.0% Indenture and the 5.0% Senior Notes receive an investment-grade rating from at least two ratings agencies. The 5.0% Indenture also contains customary events of default. At any time prior to October 15, 2023, the Company may redeem the 5.0% Senior Notes, in whole or in part, at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) the “make-whole” premium at the redemption date, plus (iii) accrued and unpaid interest, if any. On or after October 15, 2023, the Company may redeem all or part of the 5.0% Senior Notes at redemption prices (expressed as percentages of the principal amount redeemed) equal to (i) 102.5% for the twelve-month period beginning on October 15, 2023; (ii) 101.25% for the twelve-month period beginning on October 15, 2024; and (iii) 100.0% for the twelve-month period beginning October 15, 2025 and at any time thereafter, plus accrued and unpaid interest, if any. The Company may redeem up to 35% of the aggregate principal amount of the 5.0% Senior Notes at any time prior to October 15, 2023 with an amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 105.0% of the principal amount of the 5.0% Senior Notes redeemed, plus accrued and unpaid interest, if any, provided, however, that (i) at least 65.0% of the aggregate principal amount of the 5.0% Senior Notes originally issued on the issue date (but excluding 5.0% Senior Notes held by the Company) remains outstanding immediately after the occurrence of such redemption (unless all such 5.0% Senior Notes are redeemed substantially concurrently) and (ii) the redemption occurs within 180 days after the date of the closing of such equity offering. The 5.0% Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of Civitas' existing subsidiaries. 7.5% Senior Notes In conjunction with the HighPoint Merger, the Company issued $100.0 million aggregate principal amount of 7.5% Senior Notes due 2026 (the “7.5% Senior Notes”) pursuant to an indenture, dated April 1, 2021 , by and among Civitas Resources, U.S. Bank National Association, as trustee, and the guarantors party thereto. Interest accrued at the rate of 7.5% per annum and was payable semiannually in arrears on April 30 and October 31 of each year. On May 1, 2022, the Company redeemed all of the issued and outstanding 7.5% Senior Notes at 100.0% of their aggregate principal amount, plus accrued and unpaid interest thereon to the redemption date. The 7.5% Senior Notes and 5.0% Senior Notes are recorded net of unamortized deferred financing costs within the Senior notes line item on the accompanying balance sheets. There were no discounts or premiums associated with either issuance. The tables below present the related carrying values as of June 30, 2022 and December 31, 2021 (in thousands): As of June 30, 2022 Principal Amount Unamortized Deferred Financing Costs Net Amount 5.0% Senior Notes $ 400,000 $ 7,492 $ 392,508 As of December 31, 2021 Principal Amount Unamortized Deferred Financing Costs Net Amount 7.5% Senior Notes $ 100,000 $ — $ 100,000 5.0% Senior Notes $ 400,000 $ 8,290 $ 391,710 Credit Facility The Company is party to a reserve-based revolving facility, as the borrower, with JPMorgan Chase Bank, N.A. (“JPMorgan”), as the administrative agent, and a syndicate of financial institutions (the “Lender Syndicate”), as lenders, that mature on November 1, 2025 (with all subsequent amendments as defined below, the “Credit Facility”). The Credit Facility contains customary representations and affirmative covenants. The Credit Facility also contains customary negative covenants, which, among other things, and subject to certain exceptions, include restrictions on (i) liens, (ii) indebtedness, guarantees and other obligations, (iii) restrictions in agreements on liens and distributions, (iv) mergers or consolidations, (v) asset sales, (vi) restricted payments, (vii) investments, (viii) affiliate transactions, (ix) change of business, (x) foreign operations or subsidiaries, (xi) name changes, (xii) use of proceeds, letters of credit, (xiii) gas imbalances, (xiv) hedging transactions, (xv) additional subsidiaries, (xvi) changes in fiscal year or fiscal quarter, (xvii) operating leases, (xviii) prepayments of certain debt and other obligations, (xix) sales or discounts of receivables, (xx) dividend payment thresholds, and (xi) cash balances. In addition, the Company is subject to certain financial covenants under the Credit Facility, as tested on the last day of each fiscal quarter, including, without limitation, (a) a maximum ratio of the Company's consolidated indebtedness (subject to certain exclusions) to earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense, and other non-cash charges (“permitted net leverage ratio”) of 3.00 to 1 and (b) a current ratio, as defined in the agreement, inclusive of the unused commitments then available to be borrowed, to not be less than 1.00 to 1. The Company was in compliance with all covenants under the Credit Facility as of June 30, 2022, and through the filing of this report. On November 1, 2021, the Company, JPMorgan, and the Lender Syndicate entered into an Amended and Restated Credit Agreement (the “A&R Credit Agreement”), having an aggregate maximum commitment amount of $2.0 billion. The A&R Credit Agreement, among other things, amended the borrowing base adjustment provisions such that, between borrowing base determinations, downward adjustments related to the incurrence of certain permitted indebtedness will only occur if either (A) such indebtedness exceeds $500.0 million and the Company’s pro-forma leverage ratio is less than or equal to 1.50 to 1, or (B) the Company's pro-forma leverage ratio is greater than 1.50 to 1. Under the A&R Credit Agreement, the Credit Facility is guaranteed by all restricted domestic subsidiaries of the Company, and is secured by first priority security interests on substantially all assets, including a mortgage on at least 90% of the total value of the proved properties evaluated in the most recently delivered reserve reports prior to the amendment effective date, including any engineering reports relating to the oil and natural gas properties of the restricted domestic subsidiaries of the Company, subject to customary exceptions. On December 21, 2021, the Company entered into a First Amendment to the A&R Credit Agreement that stipulates that the minimum hedging covenant with respect to projected oil and gas production will not apply if the Company’s leverage ratio is less than 1.00 to 1 as of the applicable quarterly test date, until the next such test date. On April 20, 2022, and as part of the regularly scheduled, semi-annual borrowing base redetermination, the Company entered into a Second Amendment to the A&R Credit Agreement that increased the Company's borrowing base from $1.0 billion to $1.7 billion and increased the aggregate elected commitments from $800.0 million to $1.0 billion. These increases were primarily driven by the increased value of the Company’s estimated proved reserves at December 31, 2021. The next scheduled borrowing base redetermination date is set to occur in October 2022. In addition, the Second Amendment to the A&R Credit Agreement resulted in the removal and replacement of LIBOR with the Secured Overnight Financing Rate (“SOFR”) as a mechanism to determine interest for borrowings made under the Credit Facility using a term-specific SOFR. As a result, borrowings under the Credit Facility bear interest at a per annum rate equal to, at the option of the Company, either (i) the Alternate Base Rate (“ABR”, for ABR Revolving Credit Loans) plus the applicable margin, or (ii) the term-specific SOFR plus the applicable margin. ABR is established as a rate per annum equal to the greatest of (a) the rate of interest publicly announced by JPMorgan as its prime rate, (b) the applicable rate of interest published by the Federal Reserve Bank of New York (“NYFRB”) plus 0.5%, or (c) the term-specific SOFR plus 1.0%, subject to a 1.50% floor plus the applicable margin of 1.00% to 2.00%, based on the utilization of the Credit Facility. Term-specific SOFR is based on one-, three-, or six-month terms as selected by the Company and is subject to a 0.50% floor plus the applicable margin of 2.00% to 3.00%, based on the utilization of the Credit Facility. Interest on borrowings that bear interest at the SOFR shall be payable on the last day of the applicable interest period selected by the Company, and interest on borrowings that bear interest at the ABR shall be payable quarterly in arrears. The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Facility as of the dates indicated (in thousands): August 3, 2022 June 30, 2022 December 31, 2021 Revolving credit facility $ — $ — $ — Letters of credit 12,393 12,393 21,656 Available borrowing capacity 987,607 987,607 778,344 Total aggregate elected commitments $ 1,000,000 $ 1,000,000 $ 800,000 In connection with the amendments to the Credit Facility, the Company capitalized a total of approximately $11.9 million in deferred financing costs. Of the total post-amortization net capitalized amounts, (i) $7.0 million and $7.5 million are presented within the other noncurrent assets line item on the accompanying balance sheets as of June 30, 2022 and December 31, 2021, respectively, and (ii) $3.0 million and $2.7 million is presented within the prepaid expenses and other line item on the accompanying balance sheets as of June 30, 2022 and December 31, 2021, respectively. Interest Expense For the three months ended June 30, 2022 and 2021, the Company incurred interest expense of $8.1 million and $3.8 million and capitalized zero and $0.6 million, respectively. For the six months ended June 30, 2022 and 2021, the Company incurred interest expense of $17.2 million and $4.3 million and capitalized zero and $0.6 million, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company is involved in various commercial and regulatory claims, litigation, and other legal proceedings that arise in the ordinary course of its business. The Company assesses these claims in an effort to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. In accordance with authoritative accounting guidance, an accrual is recorded for a loss contingency when its occurrence is probable and damages can be reasonably estimated based on the most likely anticipated outcome or the minimum amount within a range of possible outcomes. Because legal proceedings are inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about uncertain future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. No claims have been made, nor is the Company aware of any material uninsured liability which the Company may have, as it relates to any environmental cleanup, restoration, or the violation of any rules or regulations. Upon closing of the HighPoint, Extraction, and Crestone Peak mergers and Bison Acquisition, the Company assumed all obligations, whether asserted or unasserted, of HighPoint, Extraction, Crestone Peak, and Bison. As of the filing date of this report, there were no probable, material pending, or overtly threatened legal actions against the Company of which it was aware, other than the following: Boulder County. In prior periods, there was ongoing litigation between Boulder County and Extraction which has been previously disclosed as having the potential to prevent oil and gas operations for the development of minerals contained within Boulder County, Colorado. Boulder County had initiated suit in District Court for Boulder County that was primarily a contract case, where the relevant contracts were the conservation easement over the Blue Paintbrush location, Extraction’s Surface Use Agreement for the Blue Paintbrush location, and the leases that Boulder owns within the Blue Paintbrush drilling and spacing unit. Boulder sought invalidation of these leases in the litigation. This litigation has been resolved as to all substantive issues, and the Company is awaiting final dismissal of the matter by the trial court. In May, 2022, the Company became aware that Boulder County is alleging new legal theories and requesting termination of the leases previously at issue in the Blue Paintbrush litigation. No formal action has been initiated, but the Company intends to vigorously defend against all claims alleged by Boulder County. If an action is brought by Boulder County, an adverse outcome in any such litigation could result in the Company failing to meet its development objectives in Blue Paintbrush. Enforcement. Disclosure of certain environmental matters is required when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that the Company believes could exceed $0.3 million. The Company has received Notices of Alleged Violations (“NOAV”) from the COGCC alleging violations of various Colorado statutes and COGCC regulations governing oil and gas operations. The Company has further received notices from the Colorado Air Pollution Control Division. The Company continues to engage in discussions regarding resolution of the alleged violations. As of June 30, 2022 and December 31, 2021, the Company has accrued approximately $1.0 million associated with the NOAVs and Colorado Air Pollution Control Division notices, as they are probable and reasonably estimable. Commitments Firm Transportation Agreements. The Company is party to one firm pipeline transportation contract to provide a guaranteed outlet for production on an oil pipeline system. The contract requires the Company to pay minimum volume transportation charges on 12,500 barrels (“Bbl”) per day through April 2025, regardless of the amount of pipeline capacity utilized by the Company. The aggregate financial commitment fee over the remaining term was $41.4 million as of June 30, 2022. The Company expects to utilize most, if not all, of the firm capacity on the oil pipeline system. Minimum Volume Agreement - Oil. The Company is party to a purchase agreement to deliver fixed and determinable quantities of crude oil. Under the terms of the agreement, the Company is required to make periodic deficiency payments for any shortfalls in delivering the minimum gross volume commitment of 16,000 Bbls per day over a term ending in 2023. The aggregate financial commitment fee over the remaining term is $20.0 million as of June 30, 2022. Upon notifying the purchaser at least twelve months prior to the expiration date of the agreement, the Company may elect to extend the term of the agreement for up to three Minimum Volume Agreement - Gas and Other. The Company is party to a long-term gas gathering and processing agreement (the “Gathering Agreement”) with a third-party midstream provider over a term ending in 2029 with an annual minimum volume commitment of 13.0 billion cubic feet of natural gas. The Gathering Agreement also includes a commitment to sell take-in-kind NGLs from other processing agreements of 7,500 Bbls a day through 2026 with the ability to roll forward up to a 10% shortfall in a given month to the subsequent month. The aggregate financial commitment over the remaining term is $160.2 million as of June 30, 2022, which fluctuates with commodity prices as this is a value-based percentage of proceeds sales contract. Based on current projections, the Company may incur approximately $73.8 million of shortfall payments under the Gathering Agreement during the remaining term of approximately seven years; however, the Company is actively engaging alternative strategies to reduce any potential contract deficiencies incurred in future periods. Additionally, the Company is also party to a gas gathering and processing agreement with several third-party producers and a third-party midstream provider to deliver to two different plants over terms that end in August 2025 and July 2026. The Company’s share of these commitments requires an incremental 51.5 and 20.6 million cubic feet of natural gas (“MMcf”) per day, respectively, over a baseline volume of 65 MMcf per day for a period of seven years following the in-service dates of the plants. The Company may be required to pay a shortfall fee for any incremental volume deficiencies under these commitments. These contractual obligations can be reduced by the Company’s proportionate share of the collective volumes delivered to the plants by other incremental third-party volumes available to the midstream provider that are in excess of the total commitments. Because of the third-party producer reduction provision, we believe that the aggregate financial commitment fee over the remaining term is zero as of June 30, 2022. The Company has not, and does not, expect to incur any deficiency payments. The Company is also party to additional individually immaterial agreements that require the Company to pay a fee associated with the minimum volumes regardless of the amount delivered. The aggregate financial commitment fee over the remaining term for these contracts was $11.7 million as of June 30, 2022. The minimum annual payments under the these agreements for the next five years as of June 30, 2022 are presented below (in thousands): Firm Transportation Minimum Volume (1) Remainder of 2022 $ 7,360 $ 30,785 2023 14,600 34,533 2024 14,640 25,818 2025 4,800 22,610 2026 — 20,987 2027 and thereafter — 57,200 Total $ 41,400 $ 191,933 ___________________________ (1) The above calculation is based on the minimum volume commitment schedule (as defined in the relevant agreement) and applicable differential fees. Other commitments. The Company is party to a drilling commitment agreement with a third-party midstream provider such that the Company is required to drill a total of 106 horizontal wells, whereby a minimum number of wells out of the total must be drilled by a deadline occurring every two years over a period ending December 31, 2026. The drilling commitment agreement provides for, among other things, a number of specifications such as minimum consecutive days of production, well performance, and lateral length. Wells operated by others can satisfy this commitment, subject to limitations. If the Company were to fail to complete the wells by the applicable deadline, it would be in breach of the agreement and the third-party midstream provider could attempt to assert damages against Civitas and its affiliates. As of the date of filing, the Company cannot reasonably estimate how much, if any, damages will be paid. Refer to Note 13 - Leases

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Long Term Incentive Plans In April 2017, the Company adopted the 2017 Long Term Incentive Plan (“2017 LTIP”), which provides for the issuance of restricted stock units, performance stock units, and stock options, and reserved 2,467,430 shares of common stock. In June 2021, the Company adopted the 2021 Long Term Incentive Plan (“2021 LTIP”), which reserved an incremental 700,000 shares of common stock to those previously reserved under the 2017 LTIP. Finally, pursuant to the Extraction Merger Agreement, Civitas assumed the Extraction Equity Plan, which reserved 3,305,080 shares of common stock now issuable by Civitas. The 2017 LTIP, 2021 LTIP, and Extraction Equity Plan are collectively referred to herein as the “LTIP”. In November 2021, the Company adopted a non-employee director compensation program (the “Director Compensation Program”), which provides that non-employee directors will receive grants of deferred stock units (“DSUs”). In connection with the adoption of the Director Compensation Program, the Company adopted a First Amendment to the 2021 LTIP that, among other things, allows the Company to determine whether dividend rights granted pursuant to the LTIP should be reinvested, paid currently or paid in accordance with the terms of an associated award. The Company records compensation expense associated with the issuance of awards under the LTIP based on the fair value of the awards as of the date of grant within general and administrative expense. The following table outlines the compensation expense recorded by type of award (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Restricted and deferred stock units $ 3,917 $ 1,746 $ 9,182 $ 3,067 Performance stock units 2,218 449 5,043 740 Total stock-based compensation $ 6,135 $ 2,195 $ 14,225 $ 3,807 As of June 30, 2022, unrecognized compensation expense related to the awards granted under the LTIP will be amortized through the relevant periods as follows (in thousands): Unrecognized Compensation Expense Final Year of Recognition Restricted and deferred stock units $ 23,595 2025 Performance stock units 18,951 2024 Total unrecognized stock-based compensation $ 42,546 Restricted Stock Units (“RSUs”) and Deferred Stock Units The Company typically grants RSUs to officers, directors, and employees and DSUs to directors as part of its LTIP. Each RSU and DSU represents a right to receive one share of the Company's common stock upon settlement of the award at the end of the specified vesting period. RSUs generally vest and settle either over a (i) one-year vesting period, with the entire grant vesting and settling on the anniversary date or (ii) three-year vesting period, with one-third of the total grant vesting and settling on each anniversary date. DSUs generally vest in quarterly installments over a one-year period following the grant date. DSUs are settled in shares of the Company's common stock upon the director’s separation of service from the Board. The Company records compensation expense associated with the issuance of RSUs and DSUs on a straight-line basis over the vesting period based on the fair value of the awards as of the date of grant within general and administrative expense. The fair value of RSUs and DSUs is equal to the closing price of the Company’s common stock on the date of the grant. A summary of the status and activity of non-vested RSUs and DSUs for the six months ended June 30, 2022 is presented below: RSUs and DSUs Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 815,062 $ 42.18 Granted 492,002 50.24 Vested (574,865) 42.80 Forfeited (30,399) 41.15 Non-vested, end of year 701,800 $ 47.36 The fair value of the RSUs and DSUs granted under the LTIP during the six months ended June 30, 2022 was $24.7 million. Performance Stock Units (“PSUs”) The Company grants PSUs to officers as part of its LTIP. The number of shares of the Company’s common stock issued to settle PSUs ranges from zero to two times the number of PSUs granted and is determined based on performance achievement against certain criteria over a three-year performance period. PSUs generally vest and settle on the third anniversary of the date of the grant. Performance achievement is determined based on one to two criteria. The first criterion is based on either, or a combination of, the Company’s absolute and relative total shareholder return (“TSR”) over the performance period. Absolute TSR is determined based upon the performance of the Company's common stock over the performance period relative to the price of the Company's common stock at the grant date. For awards with a relative TSR component, the Company's absolute TSR is compared with the absolute TSRs of a group of peer companies over the performance period. The absolute TSR for the Company and each of the peer companies is determined by dividing (A) (i) the volume-weighted average share price for the last 30 trading days of the performance period, minus (ii) the volume-weighted average share price for the 30 trading days preceding the beginning of the performance period, plus (iii) dividends paid by (B) the volume-weighted average share price for the 30 trading days preceding the beginning of the performance period. The second criterion, if applicable, is based on the Company's annual return on average capital employed (“ROCE”) for each year during the three-year performance period. The total number of PSUs granted under the LTIP was split as follows for the relevant grant years: 2022 2021 2020 TSR 100 % 100 % 67 % ROCE — % — % 33 % As the 2020 PSUs depend on a performance-based settlement criterion, compensation expense may be adjusted in future periods as the number of units expected to vest increases or decreases based on the Company’s expected ROCE performance. Of the grant-date fair value, the portion of the PSUs tied to TSR performance required a stochastic process method using a Brownian Motion simulation. A stochastic process is a mathematically defined equation that can create a series of outcomes over time. These outcomes are not deterministic in nature, which means that by iterating the equations multiple times, different results will be obtained for those iterations. In the case of the PSUs tied to TSR performance, the Company could not predict with certainty the path its stock price or the stock prices of its peers would take over the performance period. By using a stochastic simulation, the Company created multiple prospective stock pathways, statistically analyzed these simulations, and ultimately made inferences regarding the most likely path the stock price would take. As such, because future stock prices are stochastic, or probabilistic with some direction in nature, the stochastic method, specifically the Brownian Motion Model, was deemed an appropriate method by which to determine the fair value of the portion of the PSUs tied to TSR performance. Significant assumptions used in this simulation include the Company’s expected volatility, risk-free interest rate based on U.S. Treasury yield curve rates with maturities consistent with the performance period, as well as the volatilities for each of the Company’s peers. A summary of the status and activity of non-vested PSUs for the six months ended June 30, 2022 is presented below: PSUs (1) Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 319,367 $ 57.58 Granted 199,317 64.23 Vested (91,523) 32.49 Expired (41,955) 22.77 Non-vested, end of year 385,206 $ 70.77 ___________________________ (1) The number of awards assumes that the associated performance condition is met at the target amount (multiplier of one). The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two, depending on the level of satisfaction of the performance condition. The fair value of the PSUs granted under the LTIP during the six months ended June 30, 2022 was $12.8 million. The PSUs tied to TSR performance granted in 2019 vested as of December 31, 2021 and were released during the three months ended March 31, 2022 with a 200% distribution of shares to the recipients. The PSUs tied to ROCE performance granted in 2019 expired, with zero distribution of shares to the recipients. Stock Options The LTIP allows for the issuance of stock options to the Company's employees at the sole discretion of the Board. Options expire ten years from the grant date unless otherwise determined by the Board. Compensation expense on the stock options is recognized as general and administrative expense over the vesting period of the award. Stock options are valued using a Black-Scholes Model where expected volatility is based on an average historical volatility of a peer group selected by management over a period consistent with the expected life assumption on the grant date, the risk-free rate of return is based on the U.S. Treasury constant maturity yield on the grant date with a remaining term equal to the expected term of the awards, and the Company’s expected life of stock option awards is derived from the midpoint of the average vesting time and contractual term of the awards. A summary of the status and activity of non-vested stock options for the six months ended June 30, 2022 is presented below: Stock Options Weighted- Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, beginning of year 25,549 $ 34.36 Exercised (6,036) 34.36 Forfeited (111) 34.36 Outstanding, end of year 19,402 $ 34.36 4.5 $ 348 Options outstanding and exercisable 19,402 $ 34.36 4.5 $ 348 The aggregate intrinsic value of options exercised during the six months ended June 30, 2022 was $0.1 million.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The Company follows authoritative accounting guidance for measuring the fair value of assets and liabilities in its financial statements. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Further, this guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The fair value hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices in active markets for identical assets or liabilities Level 2: Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable Level 3: Significant inputs to the valuation model are unobservable Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy. Derivatives The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL commodity price derivatives. The fair value of the Company's commodity price derivatives is estimated using industry-standard models that contemplate various inputs including, but not limited to, the contractual price of the underlying position, current market prices, forward commodity price curves, volatility factors, time value of money, and the credit risk of both the Company and its counterparties. We validate our fair value estimate by corroborating the original source of inputs, monitoring changes in valuation methods and assumptions, and reviewing counterparty mark-to-market statements and other supporting documentation. Refer to Note 9 - Derivatives for more information regarding the Company’s derivative instruments. The following tables present the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 and their classification within the fair value hierarchy (in thousands): As of June 30, 2022 Level 1 Level 2 Level 3 Derivative assets $ — $ — $ — Derivative liabilities $ — $ 321,825 $ — As of December 31, 2021 Level 1 Level 2 Level 3 Derivative assets $ — $ 3,393 $ — Derivative liabilities $ — $ 239,763 $ — Long-Term Debt The 5.0% Senior Notes are recorded at cost, net of any unamortized deferred financing costs. As of June 30, 2022, the fair value of the 5.0% Senior Notes was $358.4 million. This fair value is based on quoted market prices, and as such, is designated as Level 1 within the fair value hierarchy. The recorded value of the Credit Facility approximates its fair value as it bears interest at a floating rate that approximates a current market rate. Please refer to Note 5 - Long-Term Debt for additional information. Warrants As discussed in Note 2 - Acquisitions and Divestitures , the Company issued warrants in connection with the Extraction Merger. The warrants issued are indexed to the Company’s common stock and are required to be net share settled via a cashless exercise. The Company evaluated the warrants under authoritative accounting guidance and determined that they should be classified as equity instruments. The Company's share price traded below the exercise price of the warrants and therefore were not exercisable during the three and six months ended June 30, 2022. The fair value of the warrants on the issuance date was determined using Level 3 inputs including, but not limited to, volatility, risk-free rate, and dividend yield under the Cox-Ross-Rubinstein binomial option pricing model. The warrants were included as a component of merger consideration and are recorded within additional paid-in capital on the accompanying balance sheets at a fair value of $77.5 million, with no recurring fair value measurement required. There have been no changes to the initial carrying amount of the warrants since issuance. Acquisitions and Impairments of Proved Properties We utilize the acquisition method to account for acquisitions of businesses. Pursuant to this method, we allocate the cost of the acquisition, or purchase price, to assets acquired and liabilities assumed based on fair values as of the acquisition date. Proved and unproved properties are valued based on a discounted cash flow approach utilizing Level 3 inputs, including, amongst other things, reserve quantities and classification, pace of drilling plans, future commodity prices, future development and lease operating costs, and discount rates using a market-based weighted average cost of capital determined at the time of the acquisition. When estimating the fair value of unproved properties, additional risk-weighting adjustments are applied to probable and possible reserves. Net derivative liabilities assumed are valued based on Level 2 inputs similar to the Company's other commodity price derivatives. Whenever events or circumstances indicate that the carrying value of proved properties may not be recoverable, the Company uses Level 3 inputs to measure and record impairment at fair value. There were no proved property impairments during the three and six months ended June 30, 2022 and 2021. Impairments of Unproved Properties Unproved properties are routinely evaluated for continued capitalization or impairment. On a quarterly basis, management assesses undeveloped leasehold costs for impairment by considering, among other things, remaining lease terms, future drilling plans and capital availability to execute such plans, commodity price outlooks, recent operational results, reservoir performance and geology, and estimated acreage value based on prices received for similar, recent acreage transactions by the Company or other market participants. During the three months ended June 30, 2022 and 2021, the Company incurred abandonment and impairment of unproved properties expense of zero and $2.2 million, respectively. During the six months ended June 30, 2022 and 2021, the Company incurred abandonment and impairment of unproved properties expense of $18.0 million and $2.2 million, respectively.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVES The Company periodically enters into commodity derivative contracts to mitigate a portion of its exposure to potentially adverse market changes in commodity prices for its expected future oil, natural gas, and NGL production and the associated impact on cash flows. The Company's commodity derivative contracts consist of swap and collar arrangements as well as roll differential swaps. As of June 30, 2022, all derivative counterparties were members of the Credit Facility lender group and all commodity derivative contracts are entered into for other-than-trading purposes. The Company does not designate its commodity derivative contracts as hedging instruments. In a typical swap arrangement, if the agreed upon published third-party index price (“index price”) is lower than the fixed contract price at the time of settlement, the Company receives the difference between the index price and the fixed contract price. If the index price is higher than the fixed contact price at the time of settlement, the Company pays the difference between the index price and the fixed contract price. A typical collar arrangement effectively establishes a floor and ceiling price on contracted volumes through the use of a short call and a long put (“two-way collar”). When the index price is above the ceiling price at the time of settlement, the Company pays the difference between the index price and the ceiling price. When the index price is below the floor price at the time of settlement, the Company receives the difference between the index price and floor price. When the index price is between the floor price and ceiling price, no payment or receipt occurs. A minority of our collar arrangements combine a two-way collar with a short put that holds an exercise price below the floor price (“three-way collar”). In these arrangements, when the index price is below the floor price at the time of settlement, the Company receives the difference between the index price and the floor price, capped at the difference between the floor price and the exercise price of the short put. The Company has also entered into crude oil swap contracts to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month (“Roll Differential”) in which the Company pays the periodic variable Roll Differential and receives a weighted-average fixed price differential. The weighted-average differential represents the amount of reduction to NYMEX West Texas Intermediate (“WTI”) prices for the notional volumes covered by the swap contracts. As of June 30, 2022, the Company had entered into the following commodity price derivative contracts: Contract Period Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 - Q4 2023 2024 Oil Derivatives (volumes in Bbl/day and prices in $/Bbls) Swaps NYMEX WTI Volumes 10,507 9,538 457 448 364 479 Weighted-Average Contract Price $ 47.00 $ 46.84 $ 45.42 $ 46.29 $ 46.77 $ 53.96 Two-Way Collars NYMEX WTI Volumes 8,296 7,393 1,054 — — — Weighted-Average Ceiling Price $ 68.43 $ 69.63 $ 72.70 $ — $ — $ — Weighted-Average Floor Price $ 40.66 $ 40.97 $ 40.00 $ — $ — $ — Three-Way Collars NYMEX WTI Volumes 2,241 1,738 1,721 1,436 1,237 143 Weighted-Average Ceiling Price $ 58.03 $ 57.78 $ 58.75 $ 57.69 $ 57.01 $ 56.25 Weighted-Average Floor Price $ 48.59 $ 48.42 $ 49.31 $ 48.10 $ 48.45 $ 45.00 Weighted-Average Sold Put Price $ 38.59 $ 38.42 $ 39.25 $ 37.70 $ 38.18 $ 35.00 Roll Differential Swaps (1) NYMEX WTI Volumes 2,000 2,000 — — — — Weighted-Average Contract Price $ 0.22 $ 0.22 $ — $ — $ — $ — Natural Gas Derivatives (volumes in MMBtu/day and prices in $/million British thermal units (“MMBtu”)) Swaps NYMEX HH Volumes 54,952 54,783 44,641 43,911 43,868 22,309 Weighted-Average Contract Price $ 2.76 $ 2.76 $ 2.51 $ 2.51 $ 2.51 $ 2.57 CIG Volumes 10,000 10,000 — — — — Weighted-Average Contract Price $ 2.13 $ 2.13 $ — $ — $ — $ — Two-Way Collars NYMEX HH Volumes 81,018 79,148 9,558 1,563 1,822 1,033 Weighted-Average Ceiling Price $ 3.68 $ 3.69 $ 3.23 $ 2.78 $ 2.96 $ 3.05 Weighted-Average Floor Price $ 2.59 $ 2.60 $ 2.03 $ 2.21 $ 2.36 $ 2.38 Three-Way Collars NYMEX HH Volumes 136 127 899 505 — 303 Weighted-Average Ceiling Price $ 2.74 $ 2.74 $ 3.19 $ 3.33 $ — $ 3.49 Weighted-Average Floor Price $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ — $ 2.50 Weighted-Average Sold Put Price $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ — $ 2.00 NGL Derivatives (volumes in Bbls/day and prices in $/Bbl) Swaps OPIS Basket Volumes 4,000 4,000 — — — — Weighted-Average Contract Price $ 20.22 $ 20.22 $ — $ — $ — $ — ______________________________ (1) The weighted-average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts. Derivative Assets and Liabilities Fair Value The Company’s commodity price derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as well as a reconciliation between the gross assets and liabilities and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Derivative Assets: Commodity contracts - current $ — $ 3,393 Commodity contracts - noncurrent — — Total derivative assets — 3,393 Amounts not offset in the accompanying balance sheets — (3,393) Total derivative assets, net $ — $ — Derivative Liabilities: Commodity contracts - current $ (278,600) $ (219,804) Commodity contracts - long-term (43,225) (19,959) Total derivative liabilities (321,825) (239,763) Amounts not offset in the accompanying balance sheets — 3,393 Total derivative liabilities, net $ (321,825) $ (236,370) The following table summarizes the components of the derivative loss presented on the accompanying statements of operations for the periods below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivative cash settlement loss: Oil contracts $ (114,778) $ (18,794) $ (239,940) $ (21,616) Gas contracts (54,091) (1,405) (82,875) (2,374) NGL contracts (12,762) — (25,394) — Total derivative cash settlement loss (181,631) (20,199) (348,209) (23,990) Change in fair value gain (loss) 108,981 (53,771) (19,934) (73,399) Total derivative loss $ (72,650) $ (73,970) $ (368,143) $ (97,389)

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATIONS	ASSET RETIREMENT OBLIGATIONS The Company recognizes an estimated liability for future costs associated with the abandonment of its oil and gas properties, including facilities requiring decommissioning. A liability for the fair value of an asset retirement obligation and corresponding increase to the carrying value of the related long-lived asset are recorded at the time a well is drilled or acquired, or a facility is constructed. The increase in carrying value is included in the proved properties line item in the accompanying balance sheets. The Company depletes the amount added to proved properties and recognizes expense in connection with the accretion of the discounted liability over the remaining estimated economic lives of the respective long-lived assets. Cash paid to settle asset retirement obligations is included in the cash flows from operating activities section of the accompanying statements of cash flows. The Company’s estimated asset retirement obligation liability is based on historical experience plugging and abandoning wells, estimated economic lives, estimated plugging and abandonment cost, and regulatory requirements. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised. A roll-forward of the Company's asset retirement obligation is as follows (in thousands): Amount Balance as of December 31, 2021 $ 225,315 Additional liabilities incurred 2,072 Accretion expense 8,102 Liabilities settled (8,385) Balance as of June 30, 2022 $ 227,104 Current portion 24,000 Long-term portion $ 203,104

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Earnings per basic and diluted share are calculated under the treasury stock method. Basic net income (loss) per common share is calculated by dividing net income (loss) by the basic weighted-average common shares outstanding for the respective period. Diluted net income (loss) per common share is calculated by dividing net income (loss) by the diluted weighted-average common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities consist of unvested RSUs, DSUs, PSUs as well as outstanding in-the-money stock options and warrants. When the Company recognizes a loss from continuing operations, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of diluted earnings per share. The Company issues RSUs and DSUs, which represent the right to receive, upon vesting, one share of the Company's common stock. The number of potentially dilutive shares related to unvested RSUs and DSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the vesting period. The Company issues PSUs, which represent the right to receive, upon settlement of the PSUs, a number of shares of the Company's common stock that ranges from zero to two times the number of PSUs granted on the award date. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the performance period applicable to such PSUs. The Company has also issued stock options and warrants, which both represent the right to purchase the Company's common stock at a specified exercise price. The number of potentially dilutive shares related to the stock options and warrants is based on the number of shares, if any, that would be exercisable at the end of the respective reporting period, assuming the date was the end of such stock options' or warrants' term. Stock options and warrants are only dilutive when the average price of the common stock during the period exceeds the exercise price. Please refer to Note 7 - Stock-Based Compensation for additional discussion. The following table sets forth the calculations of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) $ 468,821 $ (25,319) $ 560,460 $ (25,438) Basic net income (loss) per common share $ 5.52 $ (0.83) $ 6.60 $ (0.99) Diluted net income (loss) per common share $ 5.48 $ (0.83) $ 6.56 $ (0.99) Weighted-average shares outstanding - basic 84,993 30,655 84,917 25,774 Add: dilutive effect of contingent stock awards 561 — 536 — Weighted-average shares outstanding - diluted 85,554 30,655 85,453 25,774 There were 59,161 and 747,678 shares that were anti-dilutive for the three months ended June 30, 2022 and 2021, respectively. There were 30,822 and 777,564 shares that were anti-dilutive for the six months ended June 30, 2022 and 2021, respectively. The exercise price of the Company's warrants was in excess of the Company's stock price during the three and six months ended June 30, 2022

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Deferred tax assets and liabilities are measured by applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years related to cumulative temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying balance sheets. The tax effect of the net change in the cumulative temporary differences during each period in the deferred tax assets and liabilities determines the periodic provision for deferred taxes. The following table outlines the Federal net operating loss (“NOL”) carryforwards acquired and deferred tax assets and liabilities recorded as a result of the mergers that closed in 2021 (in millions): HighPoint Merger Extraction Merger Crestone Peak Merger Federal NOL carryforwards $ 219.0 $ 479.9 $ 555.7 Deferred tax asset (liability) $ 110.5 $ 49.2 $ (125.1) Valuation allowance (48.1) — — Net $ 62.4 $ 49.2 $ (125.1) The Company assesses the recoverability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will be realized. In making such determination, the Company considers all available (both positive and negative) evidence, including future reversals of temporary differences, tax-planning strategies, projected future taxable income, and results of operations. As a result of the HighPoint Merger, the Company recorded a valuation allowance of $48.1 million during 2021 against certain acquired net operating losses and other tax attributes due to the limitation on realizability caused by the change of ownership provisions of Section 382 of the Code. The net deferred tax liability as of June 30, 2022 was $107.9 million, and the net deferred tax asset as of December 31, 2021 was $22.3 million. Additionally, income tax payable under current liabilities as of June 30, 2022 was $50.4 million. The Company will continue to monitor facts and circumstances in the reassessment of the likelihood that the deferred tax assets will be realized. Federal income tax expense differs from the amount that would be provided by applying the statutory United States federal income tax rate of 21% to income before income taxes primarily due to the effect of state income taxes, equity-based compensation, and other permanent differences including bargain purchase gain. During the three months ended June 30, 2022 and 2021, the Company recorded income tax expense of $152.5 million and income tax benefit of $10.4 million, respectively. During the six months ended June 30, 2022 and 2021, the Company recorded income tax expense of $175.8 million and income tax benefit of $10.4 million, respectively. The Company had no unrecognized tax benefits as of June 30, 2022 and December 31, 2021. The Company's management does not believe that there are any new items or changes in facts or judgments that would impact the Company's tax position taken thus far in 2022.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
LEASES	LEASES The Company’s right-of-use assets and lease liabilities are recognized on the accompanying balance sheets based on the present value of the expected lease payments over the lease term. The following table summarizes the asset classes of the Company's operating leases (in thousands): June 30, 2022 December 31, 2021 Operating Leases Field equipment (1) $ 22,608 $ 29,312 Corporate leases 8,024 9,484 Vehicles 855 1,089 Total right-of-use asset $ 31,487 $ 39,885 Field equipment (1) $ 22,608 $ 29,312 Corporate leases 8,565 9,870 Vehicles 855 1,089 Total lease liability $ 32,028 $ 40,271 ____________________________ (1) Includes compressors, certain natural gas processing equipment, and other field equipment. The Company incurred gross short-term lease costs of $11.3 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively. The Company incurred gross short-term lease costs of $20.4 million and $0.2 million for the six months ended June 30, 2022 and 2021, respectively. A portion of these costs may have been or will be billed to other working interest owners, and the Company's net share of these costs, once paid, are capitalized to property and equipment or recognized as expense. Future commitments by year for the Company's leases with a lease term of one year or more as of June 30, 2022 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the accompanying balance sheets as follows (in thousands): Operating Leases Remainder of 2022 $ 10,210 2023 13,523 2024 5,414 2025 1,742 2026 1,207 Thereafter 1,587 Total lease payments 33,683 Less: imputed interest (1,655) Total lease liability $ 32,028

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSOn July 5, 2022, the Company entered into and closed on Purchase and Sale Agreements to acquire non-operating interests in certain of the Company's operated wells for cash consideration of $81.6 million, subject to customary purchase price adjustments.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Regulation S-X. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in audited financial statements have been condensed or omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. All significant intercompany balances and transactions have been eliminated in consolidation. The December 31, 2021 unaudited condensed consolidated balance sheet data has been derived from the audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021 (“ 2021 Form 10-K ”), but does not include all disclosures, including notes required by GAAP. As such, this quarterly report should be read in conjunction with the audited consolidated financial statements and related notes included in our 2021 Form 10-K . In connection with the preparation of the unaudited condensed consolidated financial statements, the Company evaluated subsequent events after the balance sheet date of June 30, 2022, through the filing date of this report. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year or any other future period. Significant Accounting Policies The significant accounting policies followed by the Company are set forth in Note 1 - Summary of Significant Accounting Policies in the 2021 Form 10-K and are supplemented by the notes to the unaudited condensed consolidated financial statements included in this report.
Recently Issued and Adopted Accounting Standards	Recently Issued and Adopted Accounting Standards In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), which provides temporary optional guidance to companies impacted by the transition away from the LIBOR. The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. Further, in January 2021, the FASB issued Update No. 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. These amendments are effective upon issuance and expire on December 31, 2022. We do not anticipate a material impact on the Company’s consolidated financial statements or related disclosures.
Revenue Recognition	The Company recognizes revenue from the sale of produced oil, natural gas, and NGL at the point in time when control of produced oil, natural gas, or NGL volumes transfer to the purchaser, which may differ depending on the applicable contractual terms. The Company considers the transfer of control to have occurred when the purchaser has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the oil, natural gas, or NGL production. Transfer of control dictates the presentation of gathering, transportation, and processing expenses within the accompanying statements of operations. Gathering, transportation, and processing expenses incurred by the Company prior to the transfer of control are recorded gross within the gathering, transportation, and processing line item on the accompanying statements of operations. Conversely, gathering, transportation, and processing expenses incurred by the Company subsequent to the transfer of control are recorded net within the oil, natural gas, and NGL sales line item on the accompanying statements of operations. Please refer to Note 1 - Summary of Significant Accounting Policies in the 2021 Form 10-K for more information regarding the types of contracts under which oil, gas, and NGL sales revenue is generated.

ACQUISITIONS AND DIVESTITURES (

ACQUISITIONS AND DIVESTITURES (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Merger Consideration and Preliminary Purchase Price Allocations	The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Extraction Merger: Preliminary Purchase Price Allocation (in thousands) Assets Acquired Cash and cash equivalents $ 106,360 Accounts receivable - oil and natural gas sales 119,585 Accounts receivable - joint interest and other 33,054 Prepaid expenses and other 3,044 Inventory of oilfield equipment 9,291 Derivative assets 5,834 Proved properties 1,876,014 Unproved properties 193,400 Other property and equipment, net of accumulated depreciation 40,068 Right-of-use assets 6,883 Deferred income tax assets 49,194 Other noncurrent assets 4,248 Total assets acquired $ 2,446,975 Liabilities Assumed Accounts payable and accrued expenses $ 90,353 Production taxes payable 63,572 Oil and natural gas revenue distribution payable 170,002 Income tax payable 14,000 Lease liability 6,883 Derivative liability 100,474 Ad valorem taxes 87,071 Asset retirement obligations 68,741 Other noncurrent liabilities 1,750 Total liabilities assumed 602,846 Net assets acquired $ 1,844,129 The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Crestone Peak Merger: Preliminary Purchase Price Allocation (in thousands) Assets Acquired Cash and cash equivalents $ 67,505 Accounts receivable - oil and natural gas sales 81,340 Accounts receivable - joint interest and other 9,917 Prepaid expenses and other 2,929 Inventory of oilfield equipment 11,951 Proved properties 1,797,814 Unproved properties 453,321 Other property and equipment, net of accumulated depreciation 7,980 Right-of-use assets 7,934 Total assets acquired $ 2,440,691 Liabilities Assumed Accounts payable and accrued expenses $ 134,791 Production taxes payable 52,435 Oil and natural gas revenue distribution payable 83,950 Lease liability 7,934 Derivative liability 338,383 Credit facility 280,000 Ad valorem taxes 66,913 Deferred income tax liabilities 125,086 Asset retirement obligations 88,949 Total liabilities assumed 1,178,441 Net assets acquired $ 1,262,250
Schedule of Pro Forma Financial Information	The following unaudited pro forma financial information (in thousands, except per share amounts) represents a summary of the condensed consolidated results of operations for the three and six months ended June 30, 2021, assuming the HighPoint, Extraction, and Crestone Peak mergers had been completed as of January 1, 2020. The pro forma financial information is not necessarily indicative of the results of operations that would have been achieved if the mergers had been effective as of this date, or of future results, and includes certain non-recurring pro forma adjustments that were directly attributable to the business combinations (in thousands, except per share amounts). Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Total revenue $ 527,794 $ 1,093,110 Net income (loss) (101,825) 756,271 Net income (loss) per common share - basic $ (1.21) $ 8.98 Net income (loss) per common share - diluted $ (1.21) $ 8.94

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Revenue Stream	Revenue attributable to each identified revenue stream is disaggregated below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating net revenues: Oil sales $ 778,258 $ 116,091 $ 1,327,760 $ 166,155 Natural gas sales 205,840 15,168 319,001 28,300 NGL sales 167,266 24,776 322,413 35,739 Oil, natural gas, and NGL sales $ 1,151,364 $ 156,035 $ 1,969,174 $ 230,194

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses contain the following as of the dates indicated (in thousands): June 30, 2022 December 31, 2021 Accounts payable trade $ 12,166 $ 19,623 Accrued drilling and completion costs 132,096 129,430 Accrued lease operating expense and gathering, transportation, and processing 80,834 19,077 Accrued general and administrative expense 13,973 21,163 Accrued merger transaction costs 2,199 1,475 Accrued oil and NGL hedging 44,730 26,601 Accrued interest expense 5,484 6,303 Accrued settlement 10,291 20,791 Other accrued expenses 4,497 1,725 Total accounts payable and accrued expenses $ 306,270 $ 246,188

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The tables below present the related carrying values as of June 30, 2022 and December 31, 2021 (in thousands): As of June 30, 2022 Principal Amount Unamortized Deferred Financing Costs Net Amount 5.0% Senior Notes $ 400,000 $ 7,492 $ 392,508 As of December 31, 2021 Principal Amount Unamortized Deferred Financing Costs Net Amount 7.5% Senior Notes $ 100,000 $ — $ 100,000 5.0% Senior Notes $ 400,000 $ 8,290 $ 391,710 The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Facility as of the dates indicated (in thousands): August 3, 2022 June 30, 2022 December 31, 2021 Revolving credit facility $ — $ — $ — Letters of credit 12,393 12,393 21,656 Available borrowing capacity 987,607 987,607 778,344 Total aggregate elected commitments $ 1,000,000 $ 1,000,000 $ 800,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Annual Minimum Commitment Payments	The minimum annual payments under the these agreements for the next five years as of June 30, 2022 are presented below (in thousands): Firm Transportation Minimum Volume (1) Remainder of 2022 $ 7,360 $ 30,785 2023 14,600 34,533 2024 14,640 25,818 2025 4,800 22,610 2026 — 20,987 2027 and thereafter — 57,200 Total $ 41,400 $ 191,933 ___________________________ (1) The above calculation is based on the minimum volume commitment schedule (as defined in the relevant agreement) and applicable differential fees.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Share-Based Compensation Expense	The following table outlines the compensation expense recorded by type of award (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Restricted and deferred stock units $ 3,917 $ 1,746 $ 9,182 $ 3,067 Performance stock units 2,218 449 5,043 740 Total stock-based compensation $ 6,135 $ 2,195 $ 14,225 $ 3,807
Summary of Unrecognized Compensation Expense and Vesting Criterion	As of June 30, 2022, unrecognized compensation expense related to the awards granted under the LTIP will be amortized through the relevant periods as follows (in thousands): Unrecognized Compensation Expense Final Year of Recognition Restricted and deferred stock units $ 23,595 2025 Performance stock units 18,951 2024 Total unrecognized stock-based compensation $ 42,546 The total number of PSUs granted under the LTIP was split as follows for the relevant grant years: 2022 2021 2020 TSR 100 % 100 % 67 % ROCE — % — % 33 %
Summary of the Status and Activity of Non-Vested RSUs, DSUs, and Options	A summary of the status and activity of non-vested RSUs and DSUs for the six months ended June 30, 2022 is presented below: RSUs and DSUs Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 815,062 $ 42.18 Granted 492,002 50.24 Vested (574,865) 42.80 Forfeited (30,399) 41.15 Non-vested, end of year 701,800 $ 47.36 A summary of the status and activity of non-vested stock options for the six months ended June 30, 2022 is presented below: Stock Options Weighted- Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, beginning of year 25,549 $ 34.36 Exercised (6,036) 34.36 Forfeited (111) 34.36 Outstanding, end of year 19,402 $ 34.36 4.5 $ 348 Options outstanding and exercisable 19,402 $ 34.36 4.5 $ 348
Summary of the Status and Activity of PSUs	A summary of the status and activity of non-vested PSUs for the six months ended June 30, 2022 is presented below: PSUs (1) Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 319,367 $ 57.58 Granted 199,317 64.23 Vested (91,523) 32.49 Expired (41,955) 22.77 Non-vested, end of year 385,206 $ 70.77 ___________________________ (1) The number of awards assumes that the associated performance condition is met at the target amount (multiplier of one). The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two, depending on the level of satisfaction of the performance condition.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities at Fair Value on Recurring Basis	The following tables present the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 and their classification within the fair value hierarchy (in thousands): As of June 30, 2022 Level 1 Level 2 Level 3 Derivative assets $ — $ — $ — Derivative liabilities $ — $ 321,825 $ — As of December 31, 2021 Level 1 Level 2 Level 3 Derivative assets $ — $ 3,393 $ — Derivative liabilities $ — $ 239,763 $ —

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Commodity Derivatives	As of June 30, 2022, the Company had entered into the following commodity price derivative contracts: Contract Period Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 - Q4 2023 2024 Oil Derivatives (volumes in Bbl/day and prices in $/Bbls) Swaps NYMEX WTI Volumes 10,507 9,538 457 448 364 479 Weighted-Average Contract Price $ 47.00 $ 46.84 $ 45.42 $ 46.29 $ 46.77 $ 53.96 Two-Way Collars NYMEX WTI Volumes 8,296 7,393 1,054 — — — Weighted-Average Ceiling Price $ 68.43 $ 69.63 $ 72.70 $ — $ — $ — Weighted-Average Floor Price $ 40.66 $ 40.97 $ 40.00 $ — $ — $ — Three-Way Collars NYMEX WTI Volumes 2,241 1,738 1,721 1,436 1,237 143 Weighted-Average Ceiling Price $ 58.03 $ 57.78 $ 58.75 $ 57.69 $ 57.01 $ 56.25 Weighted-Average Floor Price $ 48.59 $ 48.42 $ 49.31 $ 48.10 $ 48.45 $ 45.00 Weighted-Average Sold Put Price $ 38.59 $ 38.42 $ 39.25 $ 37.70 $ 38.18 $ 35.00 Roll Differential Swaps (1) NYMEX WTI Volumes 2,000 2,000 — — — — Weighted-Average Contract Price $ 0.22 $ 0.22 $ — $ — $ — $ — Natural Gas Derivatives (volumes in MMBtu/day and prices in $/million British thermal units (“MMBtu”)) Swaps NYMEX HH Volumes 54,952 54,783 44,641 43,911 43,868 22,309 Weighted-Average Contract Price $ 2.76 $ 2.76 $ 2.51 $ 2.51 $ 2.51 $ 2.57 CIG Volumes 10,000 10,000 — — — — Weighted-Average Contract Price $ 2.13 $ 2.13 $ — $ — $ — $ — Two-Way Collars NYMEX HH Volumes 81,018 79,148 9,558 1,563 1,822 1,033 Weighted-Average Ceiling Price $ 3.68 $ 3.69 $ 3.23 $ 2.78 $ 2.96 $ 3.05 Weighted-Average Floor Price $ 2.59 $ 2.60 $ 2.03 $ 2.21 $ 2.36 $ 2.38 Three-Way Collars NYMEX HH Volumes 136 127 899 505 — 303 Weighted-Average Ceiling Price $ 2.74 $ 2.74 $ 3.19 $ 3.33 $ — $ 3.49 Weighted-Average Floor Price $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ — $ 2.50 Weighted-Average Sold Put Price $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ — $ 2.00 NGL Derivatives (volumes in Bbls/day and prices in $/Bbl) Swaps OPIS Basket Volumes 4,000 4,000 — — — — Weighted-Average Contract Price $ 20.22 $ 20.22 $ — $ — $ — $ — ______________________________ (1) The weighted-average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts.
Summary of all the Company's Derivative Positions	The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as well as a reconciliation between the gross assets and liabilities and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Derivative Assets: Commodity contracts - current $ — $ 3,393 Commodity contracts - noncurrent — — Total derivative assets — 3,393 Amounts not offset in the accompanying balance sheets — (3,393) Total derivative assets, net $ — $ — Derivative Liabilities: Commodity contracts - current $ (278,600) $ (219,804) Commodity contracts - long-term (43,225) (19,959) Total derivative liabilities (321,825) (239,763) Amounts not offset in the accompanying balance sheets — 3,393 Total derivative liabilities, net $ (321,825) $ (236,370)
Summary of the Components of the Derivative Gain (Loss)	The following table summarizes the components of the derivative loss presented on the accompanying statements of operations for the periods below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivative cash settlement loss: Oil contracts $ (114,778) $ (18,794) $ (239,940) $ (21,616) Gas contracts (54,091) (1,405) (82,875) (2,374) NGL contracts (12,762) — (25,394) — Total derivative cash settlement loss (181,631) (20,199) (348,209) (23,990) Change in fair value gain (loss) 108,981 (53,771) (19,934) (73,399) Total derivative loss $ (72,650) $ (73,970) $ (368,143) $ (97,389)

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Asset Retirement Obligation Changes	A roll-forward of the Company's asset retirement obligation is as follows (in thousands): Amount Balance as of December 31, 2021 $ 225,315 Additional liabilities incurred 2,072 Accretion expense 8,102 Liabilities settled (8,385) Balance as of June 30, 2022 $ 227,104 Current portion 24,000 Long-term portion $ 203,104

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The following table sets forth the calculations of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) $ 468,821 $ (25,319) $ 560,460 $ (25,438) Basic net income (loss) per common share $ 5.52 $ (0.83) $ 6.60 $ (0.99) Diluted net income (loss) per common share $ 5.48 $ (0.83) $ 6.56 $ (0.99) Weighted-average shares outstanding - basic 84,993 30,655 84,917 25,774 Add: dilutive effect of contingent stock awards 561 — 536 — Weighted-average shares outstanding - diluted 85,554 30,655 85,453 25,774

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Net Operating Loss Carryforwards and Deferred Tax Assets and Liabilities Acquired	The following table outlines the Federal net operating loss (“NOL”) carryforwards acquired and deferred tax assets and liabilities recorded as a result of the mergers that closed in 2021 (in millions): HighPoint Merger Extraction Merger Crestone Peak Merger Federal NOL carryforwards $ 219.0 $ 479.9 $ 555.7 Deferred tax asset (liability) $ 110.5 $ 49.2 $ (125.1) Valuation allowance (48.1) — — Net $ 62.4 $ 49.2 $ (125.1)

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of Balance Sheet Activity, Asset Classes	The following table summarizes the asset classes of the Company's operating leases (in thousands): June 30, 2022 December 31, 2021 Operating Leases Field equipment (1) $ 22,608 $ 29,312 Corporate leases 8,024 9,484 Vehicles 855 1,089 Total right-of-use asset $ 31,487 $ 39,885 Field equipment (1) $ 22,608 $ 29,312 Corporate leases 8,565 9,870 Vehicles 855 1,089 Total lease liability $ 32,028 $ 40,271 ____________________________ (1) Includes compressors, certain natural gas processing equipment, and other field equipment.
Schedule of Future Minimum Commitments for Operating Leases	Future commitments by year for the Company's leases with a lease term of one year or more as of June 30, 2022 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the accompanying balance sheets as follows (in thousands): Operating Leases Remainder of 2022 $ 10,210 2023 13,523 2024 5,414 2025 1,742 2026 1,207 Thereafter 1,587 Total lease payments 33,683 Less: imputed interest (1,655) Total lease liability $ 32,028

ACQUISITIONS AND DIVESTITURES -

ACQUISITIONS AND DIVESTITURES - Narrative (Details)				3 Months Ended		6 Months Ended
	Mar. 01, 2022 USD ($)	Nov. 01, 2021 USD ($) $ / shares shares	Apr. 01, 2021 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	May 01, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Merger transaction costs				$ 1,418,000	$ 18,246,000	$ 21,952,000	$ 21,541,000
Severance payments				$ 0	1,100,000	$ 7,600,000	1,100,000
HighPoint
Business Acquisition [Line Items]
Exchange ratio			0.11464
Aggregate principal amount			$ 100,000,000
Merger consideration			$ 474,900,000
Revenue, included in statement of operations					74,700,000		74,700,000
HighPoint | Former HighPoint Stockholders
Business Acquisition [Line Items]
Common stock, shares issued (in shares) | shares			487,952
HighPoint | Holders of HighPoint Senior Notes
Business Acquisition [Line Items]
Common stock, shares issued (in shares) | shares			9,314,214
HighPoint | Senior Notes | Senior Notes Due 2026, 7.50%
Business Acquisition [Line Items]
Interest rate (as a percent)			7.50%	7.50%		7.50%		7.50%	7.50%
Extraction
Business Acquisition [Line Items]
Exchange ratio		1.1711
Merger consideration		$ 1,800,000,000
Accelerated vesting clause criteria, period, if circumstances met (on or within)		12 months
Revenue, included in statement of operations					0		0
Net assets acquired		$ 1,844,129,000
Extraction | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow
Business Acquisition [Line Items]
Proved properties, measurement input		0.10
Extraction | Tranche A Warrants
Business Acquisition [Line Items]
Warrants issued (in shares) | shares		3,400,000
Price per warrant (in dollars per share) | $ / shares		$ 91.91
Extraction | Tranche B Warrants
Business Acquisition [Line Items]
Warrants issued (in shares) | shares		1,700,000
Price per warrant (in dollars per share) | $ / shares		$ 104.45
Crestone Peak
Business Acquisition [Line Items]
Revenue, included in statement of operations					$ 0		$ 0
Exchange ratio, collective number of shares | shares		22,500,000
Net assets acquired		$ 1,262,250,000
Crestone Peak | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow
Business Acquisition [Line Items]
Proved properties, measurement input		0.10
Crestone Peak | Common Stock
Business Acquisition [Line Items]
Total stock consideration		$ 1,300,000,000
Bison
Business Acquisition [Line Items]
Merger consideration	$ 279,700,000
Net assets acquired	294,200,000
Bargain purchase gain	$ 14,500,000

ACQUISITIONS AND DIVESTITURES_2

ACQUISITIONS AND DIVESTITURES - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Nov. 01, 2021
Extraction
Assets Acquired
Cash and cash equivalents		$ 106,360
Accounts receivable - oil and natural gas sales		119,585
Accounts receivable - joint interest and other		33,054
Prepaid expenses and other		3,044
Inventory of oilfield equipment		9,291
Derivative assets		5,834
Proved properties		1,876,014
Unproved properties		193,400
Other property and equipment, net of accumulated depreciation		40,068
Right-of-use assets		6,883
Deferred income tax assets	$ 49,200	49,194
Other noncurrent assets		4,248
Total assets acquired		2,446,975
Liabilities Assumed
Accounts payable and accrued expenses		90,353
Production taxes payable		63,572
Oil and natural gas revenue distribution payable		170,002
Income tax payable		14,000
Lease liability		6,883
Derivative liability		100,474
Ad valorem taxes		87,071
Asset retirement obligations		68,741
Other noncurrent liabilities		1,750
Total liabilities assumed		602,846
Net assets acquired		1,844,129
Crestone Peak
Assets Acquired
Cash and cash equivalents		67,505
Accounts receivable - oil and natural gas sales		81,340
Accounts receivable - joint interest and other		9,917
Prepaid expenses and other		2,929
Inventory of oilfield equipment		11,951
Proved properties		1,797,814
Unproved properties		453,321
Other property and equipment, net of accumulated depreciation		7,980
Right-of-use assets		7,934
Total assets acquired		2,440,691
Liabilities Assumed
Accounts payable and accrued expenses		134,791
Production taxes payable		52,435
Oil and natural gas revenue distribution payable		83,950
Lease liability		7,934
Derivative liability		338,383
Credit facility		280,000
Ad valorem taxes		66,913
Deferred income tax liabilities	$ 125,100	125,086
Asset retirement obligations		88,949
Total liabilities assumed		1,178,441
Net assets acquired		$ 1,262,250

ACQUISITIONS AND DIVESTITURES_3

ACQUISITIONS AND DIVESTITURES - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Total revenue	$ 527,794	$ 1,093,110
Net income (loss)	$ (101,825)	$ 756,271
Net income (loss) per common share - basic (in dollars per share)	$ (1.21)	$ 8.98
Net income (loss) per common share - diluted (in dollars per share)	$ (1.21)	$ 8.94

REVENUE RECOGNITION - Schedule

REVENUE RECOGNITION - Schedule of Revenue by Revenue Stream (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Oil, natural gas, and NGL sales	$ 1,151,364	$ 156,035	$ 1,969,174	$ 230,194
Oil sales
Disaggregation of Revenue [Line Items]
Oil, natural gas, and NGL sales	778,258	116,091	1,327,760	166,155
Natural gas sales
Disaggregation of Revenue [Line Items]
Oil, natural gas, and NGL sales	205,840	15,168	319,001	28,300
NGL sales
Disaggregation of Revenue [Line Items]
Oil, natural gas, and NGL sales	$ 167,266	$ 24,776	$ 322,413	$ 35,739

REVENUE RECOGNITION - Narrative

REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Receivable from contracts with customers	$ 432,694	$ 362,262

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accounts payable trade	$ 12,166	$ 19,623
Accrued drilling and completion costs	132,096	129,430
Accrued lease operating expense and gathering, transportation, and processing	80,834	19,077
Accrued general and administrative expense	13,973	21,163
Accrued merger transaction costs	2,199	1,475
Accrued oil and NGL hedging	44,730	26,601
Accrued interest expense	5,484	6,303
Accrued settlement	10,291	20,791
Other accrued expenses	4,497	1,725
Total accounts payable and accrued expenses	$ 306,270	$ 246,188

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details)

1 Months Ended

3 Months Ended

6 Months Ended

May 01, 2022

Apr. 20, 2022 USD ($)

Oct. 13, 2021 USD ($) agency

Dec. 31, 2018

Jun. 30, 2022 USD ($)

Jun. 30, 2021 USD ($)

Jun. 30, 2022 USD ($)

Jun. 30, 2021 USD ($)

Dec. 31, 2021 USD ($)

Dec. 21, 2021

Nov. 01, 2021 USD ($)

Apr. 01, 2021 USD ($)

LONG-TERM DEBT

Interest expense

$ 8,100,000

$ 3,800,000

$ 17,200,000

$ 4,300,000

Capitalized interest

0

$ 600,000

0

$ 600,000

Revolving credit facility

LONG-TERM DEBT

Minimum current ratio covenant

1

Amended Credit Agreement | Revolving credit facility

LONG-TERM DEBT

Maximum net leverage ratio

3

Maximum borrowing capacity

$ 2,000,000,000

Borrowing requirement, maximum cash balance

$ 500,000,000

Maximum pro-forma leverage ratio, criteria one, if circumstances met

1

1.50

Minimum pro-forma leverage ratio, criteria two, if circumstances met

1.50

Covenant, minimum percentage of mortgage on total value of certain proved oil and gas properties

90%

Borrowing base amount

$ 1,700,000,000

$ 1,000,000,000

Elected commitments

$ 1,000,000,000

$ 800,000,000

Amended Credit Agreement | Revolving credit facility | Fed Funds Effective Rate Overnight Index Swap Rate

LONG-TERM DEBT

Basis spread on variable rate

0.50%

Amended Credit Agreement | Revolving credit facility | SOFR

LONG-TERM DEBT

Basis spread on variable rate

1%

Basis spread on variable rate, floor

0.50%

Amended Credit Agreement | Revolving credit facility | SOFR | Minimum

LONG-TERM DEBT

Basis spread on variable rate

2%

Amended Credit Agreement | Revolving credit facility | SOFR | Maximum

LONG-TERM DEBT

Basis spread on variable rate

3%

Amended Credit Agreement | Revolving credit facility | SOFR, Plus Basis Spread One

LONG-TERM DEBT

Basis spread on variable rate, floor

1.50%

Amended Credit Agreement | Revolving credit facility | SOFR, Plus Basis Spread One | Minimum

LONG-TERM DEBT

Basis spread on variable rate

1%

Amended Credit Agreement | Revolving credit facility | SOFR, Plus Basis Spread One | Maximum

LONG-TERM DEBT

Basis spread on variable rate

2%

Amended Credit Agreement | HighPoint | Revolving credit facility

LONG-TERM DEBT

Deferred financing costs, gross

11,900,000

11,900,000

Deferred financing costs, net

7,000,000

7,000,000

$ 7,500,000

Debt issuance costs

$ 3,000,000

$ 3,000,000

$ 2,700,000

Senior Notes | Senior Notes Due 2026, 5.0%

LONG-TERM DEBT

Interest rate (as a percent)

5%

5%

5%

5%

Aggregate principal amount

$ 400,000,000

$ 400,000,000

$ 400,000,000

Covenant, investment-grade rating, number of ratings agencies (at least) | agency

2

Debt issuance costs

$ 7,492,000

$ 7,492,000

$ 8,290,000

Senior Notes | Senior Notes Due 2026, 5.0%, Indenture

LONG-TERM DEBT

Interest rate (as a percent)

5%

Senior Notes | Senior Notes Due 2026, 7.50% | HighPoint

LONG-TERM DEBT

Interest rate (as a percent)

7.50%

7.50%

7.50%

7.50%

7.50%

Aggregate principal amount

$ 100,000,000

Debt issuance costs

$ 0

Senior Notes | Debt Instrument, Redemption, Period One | Senior Notes Due 2026, 5.0%

LONG-TERM DEBT

Percentage of principal amount redeemed (up to)

35%

Redemption period, after date of closing of equity offering

180 days

Senior Notes | Debt Instrument, Redemption, Period Two | Senior Notes Due 2026, 5.0%

LONG-TERM DEBT

Redemption price, percentage

102.50%

Percentage of principal amount not redeemed

65%

Senior Notes | Debt Instrument, Redemption, Period Two | Senior Notes Due 2026, 7.50% | HighPoint

LONG-TERM DEBT

Redemption price, percentage

100%

Senior Notes | Debt Instrument, Redemption, Period Three | Senior Notes Due 2026, 5.0%

LONG-TERM DEBT

Redemption price, percentage

101.25%

Senior Notes | Debt Instrument, Redemption, Period Four | Senior Notes Due 2026, 5.0%

LONG-TERM DEBT

Redemption price, percentage

100%

Senior Notes | Debt Instrument, Redemption, Period Five | Senior Notes Due 2026, 5.0%

LONG-TERM DEBT

Redemption price, percentage

105%

LONG-TERM DEBT - Schedule of Ca

LONG-TERM DEBT - Schedule of Carrying Values (Details) - Senior Notes - USD ($)	Jun. 30, 2022	May 01, 2022	Dec. 31, 2021	Oct. 13, 2021	Apr. 01, 2021
Senior Notes Due 2026, 5.0%
LONG-TERM DEBT
Principal Amount			$ 400,000,000
Unamortized Deferred Financing Costs	$ 7,492,000		8,290,000
Net Amount	$ 392,508,000		$ 391,710,000
Interest rate (as a percent)	5%		5%	5%
Senior Notes Due 2026, 7.50% | HighPoint
LONG-TERM DEBT
Principal Amount			$ 100,000,000
Unamortized Deferred Financing Costs			0
Net Amount			$ 100,000,000
Interest rate (as a percent)	7.50%	7.50%	7.50%		7.50%

LONG-TERM DEBT - Schedule of De

LONG-TERM DEBT - Schedule of Debt Outstanding and Borrowing Capacity (Details) - Line of Credit - USD ($) $ in Thousands	Aug. 03, 2022	Jun. 30, 2022	Dec. 31, 2021
Revolving credit facility and Letters of credit
LONG-TERM DEBT
Available borrowing capacity		$ 987,607	$ 778,344
Total aggregate elected commitments		1,000,000	800,000
Revolving credit facility and Letters of credit | Subsequent Event
LONG-TERM DEBT
Available borrowing capacity	$ 987,607
Total aggregate elected commitments	1,000,000
Revolving credit facility
LONG-TERM DEBT
Credit facility outstanding		0	0
Revolving credit facility | Subsequent Event
LONG-TERM DEBT
Credit facility outstanding	0
Letters of credit
LONG-TERM DEBT
Credit facility outstanding		$ 12,393	$ 21,656
Letters of credit | Subsequent Event
LONG-TERM DEBT
Credit facility outstanding	$ 12,393

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) horizontal_well contract claim plant bbl / d bbl MMcf Bcf	Dec. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Number of claims | claim	0
Firm Transportation
Loss Contingencies [Line Items]
Financial commitment	$ 41,400
Pipeline Transportation Commitment
Loss Contingencies [Line Items]
Number of contracts | contract	1
Minimum volume transportation charges, gross barrels per day requirement thereafter through April 2025 | bbl / d	12,500
Financial commitment	$ 41,400
Crude Oil | Crude Oil Commitment
Loss Contingencies [Line Items]
Optional extended term (up to)	3 years
Natural Gas And Fresh Water | Natural Gas and Fresh Water Commitment
Loss Contingencies [Line Items]
Financial commitment	$ 0
NGL Crude Logistics | Crude Oil | Crude Oil Commitment
Loss Contingencies [Line Items]
Financial commitment	$ 20,000
Maximum volume requirement | bbl	16,000
Notification period, prior to agreement expiration date, optional extended term (at least)	12 months
Third-Party Midstream Provider
Loss Contingencies [Line Items]
Horizontal well drilling, number of wells required to be drilled | horizontal_well	106
Horizontal well drilling, minimum number of wells required to be drilled, period ending December 31, 2026	2 years
Third-Party Midstream Provider | Gas contracts | Natural Gas Commitment and Take-In-Kind Natural Gas Liquids Commitment
Loss Contingencies [Line Items]
Financial commitment	$ 160,200
Expected shortfall payments	$ 73,800
Remaining term	7 years
Third-Party Midstream Provider | Gas contracts | Natural Gas Commitment
Loss Contingencies [Line Items]
Annual minimum volume requirement | Bcf	13
Third-Party Midstream Provider | Gas contracts | Take-In-Kind Natural Gas Liquids Commitment
Loss Contingencies [Line Items]
Daily sales commitment requirement, through year seven | bbl	7,500
Monthly roll forward shortfall requirement, percent (up to)	10%
Third-Party Producers And A Third-Party Midstream Provider | Gas contracts | Natural Gas Commitment
Loss Contingencies [Line Items]
Number of different plants | plant	2
Daily baseline volume requirement | MMcf	65
Daily baseline volume requirement, term	7 years
Third-Party Producers And A Third-Party Midstream Provider | Gas contracts | Natural Gas Commitment | Minimum
Loss Contingencies [Line Items]
Daily incremental volume requirement | MMcf	51.5
Third-Party Producers And A Third-Party Midstream Provider | Gas contracts | Natural Gas Commitment | Maximum
Loss Contingencies [Line Items]
Daily incremental volume requirement | MMcf	20.6
Water Suppliers | Natural Gas And Fresh Water | Natural Gas and Fresh Water Commitment
Loss Contingencies [Line Items]
Financial commitment	$ 11,700
Sterling Energy Investments LLC Versus HighPoint Operating Corporation Litigation | Pending Litigation
Loss Contingencies [Line Items]
Accrued litigation liability	$ 1,000	$ 1,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Schedule of Purchase Obligations (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Firm Transportation
Long-term Purchase Commitment [Line Items]
Remainder of 2022	$ 7,360
2023	14,600
2024	14,640
2025	4,800
2026	0
2027 and thereafter	0
Total	41,400
NGL contracts
Long-term Purchase Commitment [Line Items]
Remainder of 2022	30,785
2023	34,533
2024	25,818
2025	22,610
2026	20,987
2027 and thereafter	57,200
Total	$ 191,933

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) performance_criteria shares	Dec. 31, 2019 shares	Mar. 31, 2022	Nov. 01, 2021 shares	Jun. 30, 2021 shares	Apr. 30, 2017 shares
LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value, options exercised | $	$ 0.1
LTIP | Restricted Stock Units (RSUs) and Deferred Stock Units (DSUs) | Non-executive Board Members
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of units granted | $	$ 24.7
LTIP | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares released upon vesting (in shares)	1
LTIP | Restricted Stock Units (RSUs) | Vesting Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
LTIP | Restricted Stock Units (RSUs) | Vesting Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
LTIP | Restricted Stock Units (RSUs) | Vesting Period Two, Anniversary One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent of shares	33%
LTIP | Restricted Stock Units (RSUs) | Vesting Period Two, Anniversary Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent of shares	33%
LTIP | Restricted Stock Units (RSUs) | Vesting Period Two, Anniversary Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent of shares	33%
LTIP | Deferred Stock Units (DSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares released upon vesting (in shares)	1
LTIP | Deferred Stock Units (DSUs) | Vesting Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
LTIP | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
LTIP | Performance Stock Units (PSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio at which award holders get common stock of the company	0
LTIP | Performance Stock Units (PSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio at which award holders get common stock of the company	2
LTIP | Performance Stock Units (PSUs) | Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Fair value of units granted | $	$ 12.8
Number of trading days	30 days
LTIP | Performance Stock Units (PSUs) | Officers | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio at which award holders get common stock of the company	0
Performance achievement, number of criteria | performance_criteria	1
LTIP | Performance Stock Units (PSUs) | Officers | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio at which award holders get common stock of the company	2
Performance achievement, number of criteria | performance_criteria	2
LTIP | Performance Stock Units (PSUs), TSR | Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distribution of shares to recipients (as a percentage)			200%
LTIP | ROCE | Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distribution of shares to recipients (in shares)		0
2017 LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)						2,467,430
2021 LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)					700,000
Extraction Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)				3,305,080

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Expenses (Details) - LTIP - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 6,135	$ 2,195	$ 14,225	$ 3,807
Restricted and deferred stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	3,917	1,746	9,182	3,067
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 2,218	$ 449	$ 5,043	$ 740

STOCK-BASED COMPENSATION - Unre

STOCK-BASED COMPENSATION - Unrecognized Compensation Expense (Details) - LTIP $ in Thousands	Jun. 30, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation	$ 42,546
Restricted and deferred stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation	23,595
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation	$ 18,951

STOCK-BASED COMPENSATION - Acti

STOCK-BASED COMPENSATION - Activity of Non-Option Awards (Details) - LTIP	6 Months Ended
	Jun. 30, 2022 $ / shares shares
RSUs and DSUs
Stock Units
Non-vested, beginning of year (in shares) | shares	815,062
Granted (in shares) | shares	492,002
Vested (in shares) | shares	(574,865)
Forfeited (in shares) | shares	(30,399)
Non-vested, end of year (in shares) | shares	701,800
Weighted-Average Grant-Date Fair Value
Non-vested, beginning of year (in dollars per share) | $ / shares	$ 42.18
Granted (in dollars per share) | $ / shares	50.24
Vested (in dollars per share) | $ / shares	42.80
Forfeited (in dollars per share) | $ / shares	41.15
Non-vested, end of year (in dollars per share) | $ / shares	$ 47.36
PSUs
Stock Units
Non-vested, beginning of year (in shares) | shares	319,367
Granted (in shares) | shares	199,317
Vested (in shares) | shares	(91,523)
Expired (in shares) | shares	(41,955)
Non-vested, end of year (in shares) | shares	385,206
Weighted-Average Grant-Date Fair Value
Non-vested, beginning of year (in dollars per share) | $ / shares	$ 57.58
Granted (in dollars per share) | $ / shares	64.23
Vested (in dollars per share) | $ / shares	32.49
Expired (in dollars per share) | $ / shares	22.77
Non-vested, end of year (in dollars per share) | $ / shares	$ 70.77
Target amount multiplier	1
PSUs | Minimum
Weighted-Average Grant-Date Fair Value
Ratio at which award holders get common stock of the company	0
PSUs | Maximum
Weighted-Average Grant-Date Fair Value
Ratio at which award holders get common stock of the company	2

STOCK-BASED COMPENSATION - Othe

STOCK-BASED COMPENSATION - Other Than Options Split Criteria (Details) - LTIP - Officers	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
TSR | 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of dual-criteria PSUs granted, percent	100%
TSR | 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of dual-criteria PSUs granted, percent		100%
TSR | 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of dual-criteria PSUs granted, percent			67%
ROCE | 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of dual-criteria PSUs granted, percent	0%
ROCE | 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of dual-criteria PSUs granted, percent		0%
ROCE | 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of dual-criteria PSUs granted, percent			33%

STOCK-BASED COMPENSATION - Ac_2

STOCK-BASED COMPENSATION - Activity of Stock Options (Details) - LTIP $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Stock Options
Outstanding, beginning of year (shares) | shares	25,549
Exercised (shares) | shares	(6,036)
Forfeited (shares) | shares	(111)
Outstanding, end of year (shares) | shares	19,402
Options outstanding and exercisable (shares) | shares	19,402
Weighted- Average Exercise Price
Outstanding, beginning of year (in dollars per share) | $ / shares	$ 34.36
Exercised (in dollars per share) | $ / shares	34.36
Forfeited (in dollars per share) | $ / shares	34.36
Outstanding, end of year (in dollars per share) | $ / shares	34.36
Options outstanding and exercisable (in dollars per share) | $ / shares	$ 34.36
Additional Information
Weighted-Average Remaining Contractual Term (in years)	4 years 6 months
Options outstanding and exercisable, Weighted-Average Remaining Contractual Term (in years)	4 years 6 months
Aggregate Intrinsic Value (in thousands) | $	$ 348
Options outstanding and exercisable, Aggregate Intrinsic Value (in thousands) | $	$ 348

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Non-financial Assets and Liabilities (Details) - Estimate of Fair Value Measurement - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Level 1
Financial assets and liabilities accounted for at fair value
Derivative assets	$ 0	$ 0
Derivative liabilities	0	0
Level 2
Financial assets and liabilities accounted for at fair value
Derivative assets	0	3,393
Derivative liabilities	321,825	239,763
Level 3
Financial assets and liabilities accounted for at fair value
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Nov. 01, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	May 01, 2022	Dec. 31, 2021	Oct. 13, 2021	Apr. 01, 2021
Financial assets and liabilities accounted for at fair value
Proved oil and gas property impairments		$ 0	$ 0	$ 0	$ 0
Abandonment and impairment of unproved properties		$ 0	$ 2,215,000	$ 17,975,000	$ 2,215,000
Senior Notes Due 2026, 5.0% | Senior Notes
Financial assets and liabilities accounted for at fair value
Interest rate (as a percent)		5%		5%			5%	5%
Senior Notes Due 2026, 5.0% | Senior Notes | Level 1
Financial assets and liabilities accounted for at fair value
Long-term debt, fair value		$ 358,400,000		$ 358,400,000
HighPoint | Senior Notes Due 2026, 7.50% | Senior Notes
Financial assets and liabilities accounted for at fair value
Interest rate (as a percent)		7.50%		7.50%		7.50%	7.50%		7.50%
Extraction | Tranche A and Tranche B Warrants
Financial assets and liabilities accounted for at fair value
Fair value allocated to consideration transferred	$ 77,500,000

DERIVATIVES - Commodity Derivat

DERIVATIVES - Commodity Derivatives (Details) - Subsequent Event - Scenario, Forecast	3 Months Ended				7 Months Ended	12 Months Ended
	Jun. 30, 2023 MMBTU $ / bbl $ / MMBTU bbl	Mar. 31, 2023 MMBTU $ / bbl $ / MMBTU bbl	Dec. 31, 2022 MMBTU $ / bbl $ / MMBTU bbl	Sep. 30, 2022 MMBTU $ / bbl $ / MMBTU bbl	Dec. 31, 2023 MMBTU $ / bbl $ / MMBTU bbl	Dec. 31, 2024 MMBTU $ / MMBTU $ / bbl bbl
Oil Derivatives (volumes in Bbl/day and prices in $/Bbls) | Swaps
Derivative [Line Items]
NYMEX WTI Volumes and OPIS Basket Volumes (in unit per day) | bbl	448	457	9,538	10,507	364	479
Weighted-Average Contract Price (in dollars per unit)	46.29	45.42	46.84	47	46.77	53.96
Oil Derivatives (volumes in Bbl/day and prices in $/Bbls) | Two-Way Collars
Derivative [Line Items]
NYMEX WTI Volumes and OPIS Basket Volumes (in unit per day) | bbl		1,054	7,393	8,296
Weighted-Average Ceiling Price (in dollars per unit)		72.70	69.63	68.43
Weighted-Average Floor Price (in dollars per unit)		40	40.97	40.66
Oil Derivatives (volumes in Bbl/day and prices in $/Bbls) | Three-Way Collars
Derivative [Line Items]
NYMEX WTI Volumes and OPIS Basket Volumes (in unit per day) | bbl	1,436	1,721	1,738	2,241	1,237	143
Weighted-Average Ceiling Price (in dollars per unit)	57.69	58.75	57.78	58.03	57.01	56.25
Weighted-Average Floor Price (in dollars per unit)	48.10	49.31	48.42	48.59	48.45	45
Weighted-Average Sold Put Price (in dollars per unit)	37.70	39.25	38.42	38.59	38.18	35
Oil Derivatives (volumes in Bbl/day and prices in $/Bbls) | Roll Differential Swaps
Derivative [Line Items]
NYMEX WTI Volumes and OPIS Basket Volumes (in unit per day) | bbl			2,000	2,000
Weighted-Average Contract Price (in dollars per unit)			0.22	0.22
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/million British thermal units (“MMBtu”)) | Swaps
Derivative [Line Items]
Weighted-Average Contract Price (in dollars per unit) | $ / MMBTU	2.51	2.51	2.76	2.76	2.51	2.57
NYMEX HH Volumes and CIG Volumes (in unit per day) | MMBTU	43,911	44,641	54,783	54,952	43,868	22,309
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/million British thermal units (“MMBtu”)) | Two-Way Collars
Derivative [Line Items]
Weighted-Average Ceiling Price (in dollars per unit) | $ / MMBTU	2.78	3.23	3.69	3.68	2.96	3.05
Weighted-Average Floor Price (in dollars per unit) | $ / MMBTU	2.21	2.03	2.60	2.59	2.36	2.38
NYMEX HH Volumes and CIG Volumes (in unit per day) | MMBTU	1,563	9,558	79,148	81,018	1,822	1,033
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/million British thermal units (“MMBtu”)) | Three-Way Collars
Derivative [Line Items]
Weighted-Average Ceiling Price (in dollars per unit) | $ / MMBTU	3.33	3.19	2.74	2.74		3.49
Weighted-Average Floor Price (in dollars per unit) | $ / MMBTU	2.50	2.50	2.50	2.50		2.50
Weighted-Average Sold Put Price (in dollars per unit) | $ / MMBTU	2	2	2	2		2
NYMEX HH Volumes and CIG Volumes (in unit per day) | MMBTU	505	899	127	136		303
Natural Gas (CIG) | Swaps
Derivative [Line Items]
Weighted-Average Contract Price (in dollars per unit) | $ / MMBTU			2.13	2.13
NYMEX HH Volumes and CIG Volumes (in unit per day) | MMBTU			10,000	10,000
NGL Derivatives (volumes in Bbls/day and prices in $/Bbl) | Swaps
Derivative [Line Items]
NYMEX WTI Volumes and OPIS Basket Volumes (in unit per day) | bbl			4,000	4,000
Weighted-Average Contract Price (in dollars per unit)			20.22	20.22

DERIVATIVES - Derivative Positi

DERIVATIVES - Derivative Positions (Details) - Commodity - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative Assets:
Total derivative assets	$ 0	$ 3,393
Amounts not offset in the accompanying balance sheets	0	(3,393)
Total derivative assets, net	0	0
Derivative Liabilities:
Total derivative liabilities	(321,825)	(239,763)
Amounts not offset in the accompanying balance sheets	0	3,393
Total derivative liabilities, net	(321,825)	(236,370)
Commodity contracts - current
Derivative Assets:
Total derivative assets	0	3,393
Commodity contracts - noncurrent
Derivative Assets:
Total derivative assets	0	0
Commodity contracts - current
Derivative Liabilities:
Total derivative liabilities	(278,600)	(219,804)
Commodity contracts - long-term
Derivative Liabilities:
Total derivative liabilities	$ (43,225)	$ (19,959)

DERIVATIVES - Derivative Loss (

DERIVATIVES - Derivative Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Components of the derivative gain (loss)
Total derivative loss	$ (72,650)	$ (73,970)	$ (368,143)	$ (97,389)
Commodity derivative
Components of the derivative gain (loss)
Total derivative cash settlement loss	(181,631)	(20,199)	(348,209)	(23,990)
Change in fair value gain (loss)	108,981	(53,771)	(19,934)	(73,399)
Total derivative loss	(72,650)	(73,970)	(368,143)	(97,389)
Commodity derivative | Oil contracts
Components of the derivative gain (loss)
Total derivative cash settlement loss	(114,778)	(18,794)	(239,940)	(21,616)
Commodity derivative | Gas contracts
Components of the derivative gain (loss)
Total derivative cash settlement loss	(54,091)	(1,405)	(82,875)	(2,374)
Commodity derivative | NGL contracts
Components of the derivative gain (loss)
Total derivative cash settlement loss	$ (12,762)	$ 0	$ (25,394)	$ 0

ASSET RETIREMENT OBLIGATIONS -

ASSET RETIREMENT OBLIGATIONS - Schedule of Roll-Forward Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Change in asset retirement obligations
Balance as of December 31, 2021	$ 225,315
Additional liabilities incurred	2,072
Accretion expense	8,102
Liabilities settled	(8,385)
Balance as of June 30, 2022	227,104
Current portion	24,000	$ 24,000
Long-term portion	$ 203,104	$ 201,315

EARNINGS PER SHARE - Narrative

EARNINGS PER SHARE - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 shares	Jun. 30, 2021 shares	Jun. 30, 2022 shares	Jun. 30, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive securities excluded from EPS calculation (in shares)	59,161	747,678	30,822	777,564
LTIP | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares released upon vesting (in shares)			1
LTIP | Deferred Stock Units (DSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares released upon vesting (in shares)			1
LTIP | Minimum | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio at which award holders get common stock of the company			0
LTIP | Maximum | Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio at which award holders get common stock of the company			2

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net income (loss), basic	$ 468,821	$ 91,639	$ (25,319)	$ (119)	$ 560,460	$ (25,438)
Net income (loss), diluted	$ 468,821		$ (25,319)		$ 560,460	$ (25,438)
Basic net income (loss) per common share (in dollars per share)	$ 5.52		$ (0.83)		$ 6.60	$ (0.99)
Diluted net income (loss) per common share (in dollars per share)	$ 5.48		$ (0.83)		$ 6.56	$ (0.99)
Weighted-average shares outstanding - basic (in shares)	84,993		30,655		84,917	25,774
Add: dilutive effect of contingent stock awards (in shares)	561		0		536	0
Weighted-average shares outstanding - diluted (in shares)	85,554		30,655		85,453	25,774

INCOME TAXES - Net Operating Lo

INCOME TAXES - Net Operating Loss Carryforwards and Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Nov. 01, 2021
HighPoint Merger
Tax Credit Carryforward [Line Items]
Federal NOL carryforwards	$ 219,000
Deferred tax asset	110,500
Valuation allowance	(48,100)
Net	62,400
Extraction Merger
Tax Credit Carryforward [Line Items]
Federal NOL carryforwards	479,900
Deferred tax asset	49,200	$ 49,194
Valuation allowance	0
Net	49,200
Crestone Peak Merger
Tax Credit Carryforward [Line Items]
Federal NOL carryforwards	555,700
Deferred tax liability	(125,100)	$ (125,086)
Valuation allowance	0
Net	$ (125,100)

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Tax Credit Carryforward [Line Items]
Net deferred tax liability	$ 107,884,000		$ 107,884,000		$ 0
Net deferred tax asset	0		0		22,284,000
Income tax payable	50,385,000		50,385,000		0
Income tax expense (benefit)	152,464,000	$ (10,392,000)	175,825,000	$ (10,436,000)
Unrecognized tax benefits	$ 0		$ 0		0
HighPoint
Tax Credit Carryforward [Line Items]
Deferred tax assets, valuation allowance					$ 48,100,000

LEASES - Assets and Liabilities

LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating Leases
Total right-of-use asset	$ 31,487	$ 39,885
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Right-of-use assets	Right-of-use assets
Total lease liability	$ 32,028	$ 40,271
Field equipment
Operating Leases
Total right-of-use asset	22,608	29,312
Total lease liability	22,608	29,312
Corporate leases
Operating Leases
Total right-of-use asset	8,024	9,484
Total lease liability	8,565	9,870
Vehicles
Operating Leases
Total right-of-use asset	855	1,089
Total lease liability	$ 855	$ 1,089

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Short-term lease costs	$ 11.3	$ 0.2	$ 20.4	$ 0.2

LEASES - Lease Maturities (Deta

LEASES - Lease Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating Leases
Remainder of 2022	$ 10,210
2023	13,523
2024	5,414
2025	1,742
2026	1,207
Thereafter	1,587
Total lease payments	33,683
Less: imputed interest	(1,655)
Total lease liability	$ 32,028	$ 40,271

SUBSEQUENT EVENTS - Narrative (

SUBSEQUENT EVENTS - Narrative (Details) $ in Millions	Jul. 05, 2022 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Payments to acquire non-operated interests in operated wells	$ 81.6