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ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Consideration Transferred and Preliminary Purchase Price Allocation

The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Hibernia Acquisition:

Preliminary Purchase Price Allocation (in thousands)
Assets Acquired
Cash and cash equivalents						$	30,671
Accounts receivable - oil and natural gas sales						89,766
Accounts receivable - joint interest and other						4,874
Proved properties						2,123,791
Unproved properties						115,802
Other property and equipment						520
Right-of-use assets						30,393
Total assets acquired						$	2,395,817
Liabilities Assumed
Accounts payable and accrued expenses						$	91,977
Production taxes payable						10,320
Oil and natural gas revenue distribution payable						75,267
Asset retirement obligations						8,299
Lease liability						30,393
Total liabilities assumed						216,256
Net assets acquired						$	2,179,561

The following tables present the consideration transferred and preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Tap Rock Acquisition:

Consideration (in thousands, except per share amount)
Cash consideration						$	1,508,143
Shares of common stock issued						13,538,472
Closing price per share(1)						$	73.14
Equity consideration						$	990,204
Total consideration(2)						$	2,498,347

_______________________

(1)Based on the closing stock price of Civitas common stock on August 2, 2023.

(2)Subject to certain customary purchase price adjustments set forth in the Tap Rock Acquisition Agreement.

Preliminary Purchase Price Allocation (in thousands)
Assets Acquired
Cash and cash equivalents						$	6,543
Accounts receivable - oil and natural gas sales						106,255
Accounts receivable - joint interest and other						31,300
Prepaid expenses and other						22,013
Proved properties						2,377,649
Unproved properties						298,859
Other property and equipment						12,827
Right-of-use assets						626
Total assets acquired						$	2,856,072
Liabilities Assumed
Accounts payable and accrued expenses						$	179,626
Production taxes payable						15,557
Oil and natural gas revenue distribution payable						78,758
Ad valorem taxes						1,374
Asset retirement obligations						31,518
Lease liability						626
Deferred revenue						50,266
Total liabilities assumed						357,725
Net assets acquired						$	2,498,347

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 nine months ended September 30, 2023 and 2022, assuming the Hibernia Acquisition and Tap Rock Acquisition had been completed as of January 1, 2022. The pro forma financial information is not necessarily indicative of the results of operations that would have been achieved if the Hibernia Acquisition and Tap Rock Acquisition had been effective as of this date, or of future results, and includes certain nonrecurring pro forma adjustments that were directly related to these business combinations. Specifically, pro forma earnings were adjusted to exclude transaction costs incurred associated with these acquisitions for the three and nine months ended September 30, 2023 and include such transaction costs in pro forma earnings for the nine months ended September 30, 2022.

						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Total revenue						$	1,157,615					$	1,575,493					$	3,306,345					$	4,542,055
Net income						179,307						597,835						686,951						1,413,135
Net income per common share - basic						$	1.91					$	6.06					$	7.28					$	14.35
Net income per common share - diluted						1.90						6.03						7.22						14.27

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-SubTopic 10
-Topic 805
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479328/805-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-SubTopic 10
-Topic 805
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479328/805-10-50-2

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X

- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 805
-SubTopic 20
-Name Accounting Standards Codification
-Paragraph 1
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479907/805-20-50-1

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