Earnings call transcript Q4 2021

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Operator

00:04 Good morning. My name is David and I’ll be your conference operator today. At this time, I would like to welcome everyone to Civitas Resources’ Fourth Quarter 2021 Earnings Conference Call. Today’s conference is being recorded. All lines have been placed on mute to prevent any background noise. Instructions] [Operator

John begin you. conference. you Wren, Thank your may XX:XX

John Wren

today and operator. Civitas’ earnings XX:XX COO; and and joined executive Matt you of team. Foschi, morning CEO; conference Dell, welcome Marianella Interim I’m other XXXX Well, thank Owens, full-year Good to CFO; Chairman and fourth call. the members Ben management quarter

of of forward-looking our our we Investor a new posted XX:XX issued Yesterday, and the aware be our we Please may on presentation, website. earnings which all that XX-K, Relations call, available press section statements. release, filed today’s are investor on make

XX:XX and These differ that materially subject SEC other statements full risks to could Please projections. and forward-looking read our filings. forward-looking uncertainties statements are from disclosures results XX-K cause our actual regarding to in

to well. call, financial be found XX:XX we non-GAAP to non-GAAP and refer release as earnings also may SEC metrics certain certain today’s filings in can reconciliations metrics, On our

over I’ll call XX:XX Dell. turn now the to Ben

Ben Dell

and The Civitas. morning, John for XX:XX everyone. one was fourth a and successful Thanks, good transformational highly quarter

closed the merger on the Peak Crestone began we X, Extraction the and Civitas. of the November acquisition building and future with of As

our to the for last the first thank hard combined I Before a employees company. three the performance, diligently several work beating all over integrating and expectations on XX:XX their months, the discussion and want companies quarter as

and E&P Civitas X E&P E&P industry neutral future. model. carbon largest executing the company Scope first the Colorado's are we the basis, Scope and the very X leading new a As and pure-play excited business XX:XX is on company’s on about

focus protecting excess shareholders. balance flow high of optimizing on our sheet, and cash focused to quality margins, model development our business simple expanding a assets, generation relentless a costs, have our on cash returning We the

footprint, XX:XX This with our is being acute we environmental an done to of continue which minimize. awareness also

stated we disciplined of firm we in consolidation. the mergers, closing the have conjunction, of the in with As believers value

Bison Oil Basin & our we On acquisition Gas recently note, of closed this II. operator DJ XX:XX

our The While equivalent and is assets, of evaluation. an margin PV-XX are acquisition of EBITDA production X.Xx which study perfect the contribution average to goes a acquisition add a this high case at Basin transaction. annualized required rigor barrels XXXX discount X,XXX March and all December to were oil small into discipline that PDP cash in at XXXX of day, to to an per [indiscernible] our estimated expected

does carbon reducing Civitas through savings additional Civitas cost extract G&A transaction. basin-wide from further highlighting to we're these any not expect emissions. neutral headcount will policy, this net consolidation. Further synergies the able its under integrate XX:XX assets and

is a manner XX:XX ESG energy of On our Civitas strive communities. the front, in the part committed to always will for challenges be faced responsible by solution to the producing and most

proud to XX:XX [ph]. emissions very Counties XX operators by commitment and the Broomfield, in Arapahoe, previous it and Civitas Larimer, plug leader comes to We're industry our is announced that our in [entity] wells in voluntarily Weld the recently Elbert, operating a areas Colorado. when Adams, clear in of opened around were

Colorado right total roughly the the of now. wells wells XX% represent These XXX in XX:XX state of orphan

pristine while and the inaugural per share maintaining yield roughly X.XX and payout of announced one sheet. balance base dividend This of to on before a share of over XX% price the of implies to per that Lastly, March is follow to top it shareholders an our composed share. in total XX:XX variable $X.XX have to per Marianella, on industry turn share leading dividend record with announcement the return is ratios through March X.XXXX a current our paid our I our tier, quarterly and excited policy we're payable shareholder previously highest of to all our This industry dividend on XX, XX. commitment be

Foschi Marianella will some walk I Now, through CFO, to to our financial call XX:XX turn the highlights. over

Marianella Foschi

basis, XX:XX on volumes expectations guidance. solid all range to a well We fronts at relative the total guidance high-end a proforma day of at Thanks, our to XXX.X range. exceeding XXX On our first quarter oil company, combined sales high-end the came in average guidance of as Ben. the XXX, during of per of quarter as had MBoe’s the

capital quarter million expenditures of XX:XX on of Total proforma came of in guidance roughly to the million XXX at XXX a range our basis. low-end the in XXX

released here from G&A combined companies proud today. XXX all to employees report almost employees at just and the have front, are to over as down we we almost been sit On transition that the were XXX

cash over XX% forward a on our per Basin. in as a expected mix, go than standalone on a BOE on XX:XX production an basis cost this heavy is On position oil leader less the margin G&A and and solidifying LOE be note, Civitas’ to basis,

XX:XX formation flat, is broadly the production Civitas. Our XXXX with consistent guidance delivering messaging since rates. cost our keeping the Of structure, and reinvestment of limiting low

XXX rigs of full production XXX closed per X on week March and to composed we [ph] oil X.X This XX liquid. approximately and [ph] Our reflects deliver XX:XX guidance of last the contribution reflects from day, which operated [fractures] transaction, XXXX to [XX%] of X. XX% months MBoe’s plan total Bison

XX:XX the percentage portion our which as Bison coming areas, our newly [ph] XXXX You as lower acquired will well assets. is guidance, a large due higher of oil to [GOR] in XXXX notice from a

to continue trend in XXXX this and beyond. expect We

Boe controllable costs, G&A their which positions a cash in expect with similar leader be with cost peer per which versus $X us to We includes XX:XX a and OpEx, in gathering and commodity mix. XXXX, companies under all processing,

implies to yields of oil. I XXXX cost structure, levels. XX:XX free Given than targets. expect slightly This unhedged capital $XX oil the cash with flow a assets that XXXX higher our XXXX re-investment Civitas over XX% quarter Bison this mix, than with unhedged program XXXX at combined margins higher note rate come fourth be higher low we

flow We yields. in-line cash program free then and with the XXXX Civitas’ reinvestment further finishing on up XXXX, in plan XX:XX increasing bringing strategy Bison rates

roughly steel and ago, to relating increases. total inflation, price a we fuel have XX% increase Regarding year this XX:XX well mostly costs time seen from

completed this of reflects process. recently equipment rebidding our of major all have of and capital We the out services, results our new and guidance

to find XX:XX [efficiencies and cost superior existing The times, alternative operating cycle team to materials operations offset] [ph] scale. utilizing increases these additional facilities, to decreasing continues

XX:XX came over billion PDP pricing SEC our X.X at $X.XX in at Excluding recently with year-end transactions, at X.X $XX the million $XX reserves and associated oil just billion $X of oil completed Boe gas. XXX gas and Bison an PV-XX and of

billion are $X at approximatelyXXX Our gas. XX:XX X.X $XX oil an of proved have at X.X reserves PV-XX billion Boe year-end, and and associated million SEC at and prices of total

developed. reserves proved Our at XX% are year-end approximately

that figures proven locations bookings reserve conservative extremely X at our developed less None years than X-rig XX:XX Bison inventory at growth are flat the XXX assets. of I'd out a includes reserve like to these pace. or point of

advantage Bison, course balance Inclusive consider strategic XX:XX strength PDP and on PV-XX sheet of we're $X is maintaining. value $XX at our oil our a and focused billion. We X.X that gas

consists As and million XXX of total and proforma cash approximately million March liquidity debt balance for with exceeding in X of the XXX Civitas’ million. transactions, of sheet Bison XXX

balance fortress in levered positions consisting companies Our least as of industry. one the us XX:XX leverage the X.Xx sheet, of

volume flexibility in or addition, have significant other capital a affording our program. In minimum commitments, we mid-stream

a leverage maintaining to with low XX:XX be X.Xx. flexibility of will target of committed leverage high stated We financial degree and

your to the Q&A. the that, Civitas. call I'll thank for I interest for And in all operator turn call and joining XX:XX like to back for you with morning the this

Operator

you. from take with [Operator XX:XX Dingmann Neil our Truist Thank We'll Instructions] first Securities. question

is line open. Your

Neil Dingmann

in stay details. XX:XX shareholder here all. thinking are the my cash return, story overview prices [indiscernible] Good question morning, just for first Thanks flow is free a about Ben, maybe you tremendous. how continued

use free sort return, about of [indiscernible] think wondering to flow continuing for? the So, versus variable allocation, want shareholder or I'm what dividend how walk just cash up to about you buybacks might that

Ben Dell

the I appreciate Neil, question. Sure. XX:XX

prices, continue I dividend, a and grow. obviously for high think, have before, our obviously, stated we dividend. [indiscernible] outlined We've where is sustained or base variable as to cancellations the we structure commodity

after a to do think about that, And how real and you infill think question I about buybacks? M&A? you about think then is, you how do do dividend? consolidation special think How the

consolidation do we the accretive XX:XX transactions said and Yes. to continue look is, Basin. we'll to in what

we return a easiest of Bison. demonstrated going after to that, about from a come additional discussion And buyback think to strategy or I the it's what's down terms in dividends? that way capital with to best

Neil Dingmann

at that, just when or I’m there. is I push And sense. or just makes XX:XX bit have your that getting that Matt, even rigs, wondering the then general, efficiencies, about you are that sort that of up or that look that of to a a to at it just plan, operations seen the sort max wondering ramp would you order I'm you more at think things X.X on you that, further? would I’m could of rigs, No, current maybe operations prefer of maybe in in with for get plan lot X definitely wondering rigs or you all are you'll to X efficiencies do notable you the just when efficiencies a you upside talked optimal. sort seeing to optimal just

Ben Dell

of a and I seen think the our from – Neil consolidation both capital to mean, Yeah. we've operations start we maybe land. companies, the I'll I XX:XX over and operating, hand then have midstream standpoint from significant Matt. in synergies

from the don't already very our that. see our for think we're I with we've comfortable you'll think that divert outlined. mainly program I capital year strategy

Matt Owens

more, up optimal little X for X us. rigs think on obviously is that. our planning around for is able XX:XX makes X, keep us It pretty but the I'd in Yes, We're needs flex active bit rigs now. one able Basin at I'd I spot we a with to say the pretty to what most the a what we're right all do add operators Neil. are sweet most at like that, with of say X good up Basin. We're something is Bison, To in maybe of to

Neil Dingmann

Thank XX:XX all. you,

Operator

to Michael XX:XX Stifel. with Scialla next go we'll And

open. is line Your

Michael Scialla

Bison there acquired guess acquired consolidation, color you'd in or XX:XX are Is follow special worth here when a in in pursuing? Good Neil’s weigh still a inventory Slide you’ve there that's the just privates pursuing you some going morning, on more the Western, you of remaining do buybacks worth everybody. You I PDC other DJ dividend on consolidation just after presentation there view see at companies how these question further versus slide how mentioned your X these have potential landscape? Maybe versus other you the Great some to wondering showing forward? to out any

Ben Dell

we that it both to in depends pursue Yeah. price. flow, mean, on I think those Michael, show us, on it's XX:XX think is Basin, to on reserves, EBITDA then cash I if we're on my types where on continue free to we of players to and production NAV accretive proven can additional consolidate on going the options.

look, but those I think players going there were again. less than to up left X obvious, weigh months there's ago, fairly we're a obviously that's transactions

XX:XX The stuff. buying is own our economics

We very free have cash yield. a significant flow

think I high in-fill is the here look or we'll of stock the [A&D] team, there's return I and at all buying best back when [indiscernible] to buying those meaningful. very opportunities board a versus do shareholders And what's M&A back the stock you of interest the management a of Ultimately, in paying holders. the dividend. compare the alignment or think degree the

Michael Scialla

process XX:XX permitting well. OGDP that the there? still Makes planning Cap, are sense. Any Want Lone or Tree the on update in the update to hearing Watkins get on first Any on half an you on update cap? as

Matt Owens

for I'll older at this approved all, Xa pre-approved the XX majority those We've far board of Matt. with have do Form had is this X, The so well Yeah, to first a locations. of year. a so company crack Form – permits that. XX:XX take

wells. front wells OGDP of in the week couple Tree blue last approved We’ve X Watkins new approved area. had weeks. OGDP Lone the last fourteen approved And rules down down additional have well for X OGDP’s had the On in under Watkins the the OGDP as for we the the

Form XX:XX far. that for X got We're next couple get to adding the amount approved of to So, the those now hoping have approval. so been to in continue of weeks submitted we've permits

That internally, on submit I just other and somewhere give to of we're should wells. X when say little plan OGDP’s on, encompass of in the terms a what bit projects we on to have working color through we around XXX you another and first going mean the XXX quarter. to in near-term the In I second that near-term,

a the OGDP’s different those mid-term in And majority on other OGDP’s So, a be across the will that XX:XX after looking The near-term we're then various that areas. have working dozen that in we're about of OGDP’s And I would another wellbore. couple we southern area. to be sometime submit various XX mid-year. half call

addition we're what that front quarters in that's wells. to And next working planning what the on. OGDP already couple cap approved is the we're got couple XX:XX on all So, we've for submit and a to over of hundred the

mentioned XXX right we're a planning will now the the possibly equivalents second hopefully cap the mile So, total. final is That was by – mid-summer pass as hearing wellbores that a of weeks have resubmitted questions sometime to on us end quarter be long completeness internally with X And ago. addressing and that you few by in on still cap. then approval around

Michael Scialla

good. XX:XX the Appreciate Sounds detail.

Operator

XX:XX Next, we'll Johnston to Phillips Capital One. with go

line open. Your is

Phillips Johnston

Hey, guys. XX:XX Thanks.

cash of Just the here some quarter's first going XX-month the at going to prior was approach trailing a Obviously, flow? to free or on out be that point free variable flow. the is gate cash to going a question actual Is function forward on dividend framework. shift the based of one that indefinitely

Marianella Foschi

it’s question. Phillips Marianella. the for Hey, XX:XX Thanks

going to trailing, from dividend if the we're XX-month variable intention think to stick variability I you will. I think remove our the to it’s

to basis. go could you held expect yes, So, that be framework on forward

Phillips Johnston

XX:XX Okay.

free just that flow something so, we three how for I have I'm we you I the for quarters guess Is actual for don't cash guess, And should provide? wondering, combined so guys the it since, might maybe XXXX? or next companies three model out

Marianella Foschi

of if is XX:XX CapEx the different Yeah, you fourth not of was now strategy keeping be all at to quarter. flat what I have think the really a for I in that mean, inclusive for quarter, full-year we fourth The the production CapEx. it going Bison the look

proforma at next to the two least you think Civitas basis. into we what look for – can brought three full quarters, at the XX-month I a So,

I few can CapEx next specifically run and fourth the good for quarters. think quarter, at you look a production EBITDA those has rate

Phillips Johnston

might tax appreciate XX:XX you Okay, what clarity, Can perfect. don't your paying just you at and point guys situation us to what cash remind the is this then, taxes? start you expect taxes year. pay And cash

Marianella Foschi

XX:XX Sure.

been combined to be So, around until yeah, obviously, shielded the say you think refreshing a impact putting $XX. I XX imagine. of a gave up analysis we guidance going the cash X, as would and we XXXX, are might we've for company fully tax we from

company And legacy out from kind of so we a which [XXX limitations of [ph]. tapping different after standpoint] start

partial So, I for would cash say, that tax figures [indiscernible] above XXXX.

Phillips Johnston

XX:XX Okay.

Thank good. Sounds you.

Marianella Foschi

XX:XX Yes, course. of

Operator

Okay. XX:XX

Next, we'll to Mariani go KeyBanc. Leo with

is open. line Your

Leo Mariani

permits XX:XX here. Hey wanted guys, on to bit follow-up little the a

the kind you you recently terms of XXXX, So, update, see kind but and you time at go the X.X appreciate rigs, And or looking is program is that it some, just still year this to nice fully into permitted a little it plan? that at do of then got permits bit more this as look into, XXXX look here? a at in longer-term any you to year, maybe extend next of have just that

Matt Owens

everything permits but Matt. for permitted this for and is Thanks is pending fully fully the else. probably through we're the Leo, This permitted, got question. fall, we've the XX:XX year and not their submitted

be sliding as what we’ll in So, mentioned that's I the getting some into just we've these been that approvals hand, of schedule.

the anticipate schedule final couple approvals have on do those next, getting that we or the plan hopefully the months. in or laid next out, for currently we of the So, approvals rig

approved some recently And we are those well. obviously that of just as OGDP’s the had

Leo Mariani

Okay. And rules, end you speak you're of permits summer, the XX:XX started of generally the fall. they under obviously maybe improving can seeing of new last kind to just then last what state, kind just out

on terms in like of you're seen time, any there? state you just any pickup have what response kind of So, color and hearing

Ben Dell

statements and unique to who Civitas what comments, follow from an to that. think operator, we members there's general see State, we're Orphan position program. standpoint what Leo, defined a level Matt a multiple dangerous commitments and very Yeah, terms in our in we've we’ve level, of made zero Look, think make XX:XX think do a good the on. what had I to in I'll the trying as state. make can of and here. I both we has net of doing, pretty with couple a the Ben about it's County on appreciation I of Well are, across And local [indiscernible] it’s then we're the dialogues

even the look you're other state. very blanket it's at to compare against make think I difficult about OGDP’s statements So, and each even XX:XX what and them in – to seeing

Matt Owens

add we're on the permits path and working that in mean, through the XX:XX we've selected like to Leo. just the currently chosen and I’d that I on. we that process

We we our and the have have only far, confident locations other two submitted the that we speak. were through had working approved unanimous as process but approval, we're so the that we've with they submitted and

Leo Mariani

XX:XX Okay, the working bit is you little are that search on? know a there I on that's any And helpful guys update, early it's for CEO sure. then

Matt Owens

actively XX:XX to seeing I a of engaged them. Leo. is mean, number We're candidates board talking and in that the

think I quality think We there's pool pick there a we've progress. made now from. of to high good talent

we would as that guided two to individual before, to expect months, more next four I in color So, the who be. have we'll is going on

Leo Mariani

guys. Okay. XX:XX Thanks

Operator

XX:XX Next Joseph we'll McKay to with Wells Fargo. go

Your line is open.

Joseph McKay

good morning, Hey, guys. XX:XX

follow-up. wanted to Just

of X elevated think outlined about, on to in returning rates, previously the the and November? but normal little it back those program, bit rates, year, to a reinvestment Bison reinvestment target more ones bit Slide a that with with was kind I kind in get little on just back of XXXX, in-line talking being color obviously are looking this

Marianella Foschi

to XX:XX program, regulatory it’s a if Ex-Bison quite it’s production X know significant. for Hi We're at our much a Thanks Bison February Joe, you look relative how path the on you on and CapEx, running is Marianella. to basis. I’d standalone going you rig, release. question. wall [indiscernible] the the

So, of XX:XX CapEx. a bit it's XXXX quite for

guide, in you that to level and I So, back you that's announcement that XXXX us on probably basis, sustainable for expect on get guide where beyond. standalone the probably [indiscernible] so to a would to

Joseph McKay

it so questions other thank you. hand XX:XX My I'll answered, back. were Okay,

Operator

go Next, Brothers. Noel we'll with Parks to Instructions] [Operator Tuohy XX:XX

Your open. line is

Noel Parks

XX:XX morning. Hi. Good

Ben Dell

XX:XX morning. Good

Noel Parks

global changed sort the, what and it’s XX:XX shift product versus rest apologize last you strength that to of the do might out various relative know, now? lead I'm your on. you NGLs, weeks, mean it areas? dramatic kind if we it the if incorporate think looked You in in about mix gas being just I sort But of, much all oil something touched something so maybe of the just sort I of really planning like saw horizon, is of few prices, big some the we just operating already you sort energy I of think and you of, make could different plans, sustainable, in drilling some, given have Over sort product be could of that of across shift on there

of sort XXXX beyond that's when changes I’m assuming you some got if So, able plan XX:XX to in you've and major a might happen? be looking offset they that filter

Ben Dell

plan XX:XX a at Yeah. what want about we X, management at do and a clear a very X, X years the level, No, team board we overall think high reinvestment. I for as terms framework in the next to have the of

with Watkins the oily. and the Crestone and that's for more acquisition As asset, Peak, definitely you oily more basins know,

higher a a we of [indiscernible] oil will So, firm percentage as become over time.

XX:XX and efficiencies. that improves cash our accretive Obviously, cash margins recycle pretty ratios in improves that's and environment, our and

changes I being this other to the today. don't we said, [backwardated] [ph]. that. made see like program. think you're Yes, major curve So, going earlier That I statement to heavily is our any

we're months and next highly in multi-year see stick you're a highly at look cyclical to existing to shift assumption is a the XX material over industry, the and going to and going It’s on think basis. months. XX clearly a We that, not to our that returns plan base I volatile XX:XX

Noel Parks

for Great. me. all That's XX:XX Thanks.

Operator

Okay. XX:XX

to go we'll Next [indiscernible].

is open. line Your

Unidentified Analyst

shares one, change? what what us announcement, trying change in Bison were the potentially there Would walk relative the of XX:XX you Thank a trying took cash. you or the accomplish transaction, number to ultimately initial was to versus that to place and you. through with how announcement terms that Relative negotiation was change final to Bison and accomplish

Ben Dell

traded the proposal into but details, of I debt, a with their cash down, announcement, much the shares. XX:XX Since the shares combination original had up. portion a mean, I the go commodity too and assuming made won’t the obviously traded Yes. small of we

the were Also cash they I having on that And the speak shares. I think sellers, had to for cash, desire So, incremental a to the returns for attractive. the XX:XX a into by liquidity. us avoided I but we dividend converting converting transaction pretty it to obviously think, pay can't

was the that. doing us significant benefit net to of So,

of think position framework the XX:XX you get half the to the [indiscernible] model buybacks. do we've and position, you as I with we to the we year. what discussion at a role the road, also company the asked And there cash about that this obviously to and as can be been go will cash that look given into before down of the excess in out about call cash,

to was that on. transaction opportunity as shares XX:XX that attractive a The return to pretty back there avoid And the the not way I overall and look and to dilution we've an to the look later improve buy you have essentially and transaction. view when

Unidentified Analyst

XX:XX Thank color. you for the

Operator

XX:XX And One. with go Phillips Capital to next a Johnston we'll

is open. line Your

Phillips Johnston

to on follow-up rate back to rigs, to wanted guess, just XXX addition this I brought is wells but just in planning capital with drilling the planning [indiscernible] rate on Sorry. only of next you're I wells improve year, year, falling next I number should year. number a three it noticed online. the also the reinvestment online XXXX efficiency the dropping wells that tailwind XX:XX to drilled? reinvestment cash reserve and XX Is help of ultimately

Ben Dell

getting on of which XXXX, of kind back work we brought a in some of three XX:XX our happens had Yes. what a there operational track. ramped hiatus together, we the up activity, We Look, of we, of in of half second companies have look and – brief sort was now you at to lot did.

I'd towards the more some gone out changed you model. designs, we is, think back of slow thing flowback our designs, other of completion the I point know,

to how relative impacts comes production that on So, CapEx.

that expand to think can that goes as occur team of And that is build continue And and [indiscernible] cash will year we I improve of [indiscernible] a margins. year. we we to XX:XX confident costs, will part think on. up There’s a as drive board do goal The through capital be. management the continue efficiency, are I roll the capital slide the as down

Matt Owens

XX:XX add to it the letting of guided This in a be the that We're sometimes not kind that DUC. intentionally on and couple year have Yes. completing plan build drill that To we have to Matt. bigger with block is Phillips. start it development have, by trying We're of we physicians we area specific can interference. to to and a on before we one turning avoid pads

And so, that will at kind year. of ebb and DUC flow and kind of forward carry each of end dictate what is our the

Phillips Johnston

okay. sense. Makes guys. Yes, XX:XX Thanks

Operator

And XX:XX to next [indiscernible]. go will

is line Your open.

Unidentified Analyst

Thanks I questions. XX:XX have my just Hi. questions. for taking two

relate and cash little out if I'm quarter it you the or on then cash front? may about the interpreted shareholders that us how you. kind First, the if give emphasis on acquired could in Peak about derivative this part Thank M&A, thinking the set could second like might may update And a more activity be of on not of the if Crestone talk wondering what opportunity and extraction acquisitions? you the comment the question bit slowing as down on settlement looks housekeeping to returning how just an or you're there. is as capital M&A

Ben Dell

or a the dynamic. XX:XX our don't take landscape that. you part of in M&A comments think anything first I'll as the around should Sure. change the I interpret

got they across to board on reserves, continue NAV Basin etcetera. within see production, for and we is, opportunities to evaluate the continue framework accretive our EBITDA We them. us consolidation to Again,

seen And it we opportunities execute lot accretive, we we attractive think see I Basin obviously from of And XX:XX on see that benefit we've where through that and a the will transaction. them.

So, nothing's really changed there.

I’ll and the Marianella it. hedge, the stays framework Our same take to let

Unidentified Analyst

still? understand like have the that are trying other to of Bison available sorry, acquisitions Bison I’m XX:XX now? on set just like size you opportunity there the I'm right

Ben Dell

Yes. XX:XX

right. in Slide players XX,XXX I range we at pros it [indiscernible]. you of specifics highlight different think would can't participants active some each be know around speak other the have in cons, if and any I and size XX,XXX the you I barrels. the to of say Again, them, price of about Basin, X, barrels look at they right consolidation. further them but would the

Unidentified Analyst

Thank XX:XX you.

Marianella Foschi

I'll unwind, on take one the the XX:XX Marianella. And is this

roughly, was XXX the quarter. all-in board current legacy current To point, fourth and So, decision in the undertook. It a we team to spent anything to related with did this not it million, do companies. that management have this your

book it XX. ended of was legacy And weighted So, a that we balance sheets, cost different reflected book hedge up inherited, when was of like barrels X companies, average roughly we so, to at unwinding XX hedge from right? a the around million

legacy cash, everything a XXXX, obviously positions And decision guess, it’s XX:XX legacy perspective. related companies, at looked companies in sheet, our a hedging the which we know that we So, from looked it or hedge could felt related I no, if to structure. times, [indiscernible] to optimize nothing you it balance really with was cash necessarily. we position, is [indiscernible] the but like we is at no receipt our didn't cost anything And pricing have

Unidentified Analyst

XX:XX Okay.

if was So, and as you the to unwind the of cash that many was kind decision so of hedges acquired pre-determined unrelated that to did? the

Marianella Foschi

December balance cash companies Those center at XX:XX inherited proforma our that was legacy just sheet from book. some actually came in evaluation hedge [indiscernible] closing. So expenses after the of the the cash that was rigorous

Unidentified Analyst

XX:XX Okay. much And you because how million? was of was can thought say again, in excess unwound, I XXX it

Marianella Foschi

roughly the XX:XX no, actual XXX So, million. unwinds were

excess was core XXX you to an thinking actually XXX. just percentages normal I of get think there period. that what how million the during That's the did of you're settle in settlements

of roughly a million barrels unwinding, roughly expect X we million So, XXX oil.

Unidentified Analyst

you. Thank Okay. XX:XX

Marianella Foschi

Thanks. XX:XX

Unidentified Analyst

ahead. to were you XX:XX going Go say? What

Marianella Foschi

XX:XX covered XXXX XXXX. to No, the I of positions say going physicians, through was for so that what they're it period [indiscernible] out

Unidentified Analyst

it. XX:XX you. Got Thank

Marianella Foschi

You’re XX:XX welcome.

Operator

call the this I'll remarks. turn now XX:XX questions for additional Dell time. or Ben closing are There no further at over back to any

Ben Dell

time XX:XX I the Thank just I’d also this look dialogue. continuing be there’s additional through thank to available. listen for for you'd hard you. to forward offline, if team consolidation. take questions management thank all to their like to will making and the like work We like the day, investors the team

Operator

today's concludes conference This XX:XX call.

disconnect. now may You

Civitas Resources (CIVI) 9 Mar 222021 Q4 Earnings call transcript