XML 39 R26.htm IDEA: XBRL DOCUMENT v3.24.3

ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Consideration Transferred and Preliminary Purchase Price Allocation

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

Consideration (in thousands, except shares and per share amount)
Cash consideration			$	996,420
Deferred acquisition consideration(1)(3)			$	532,284
Shares of common stock issued			7,181,527
Closing price per share(2)			$	68.08
Equity consideration(4)			$	488,918
Total consideration			$	2,017,622

_______________________

(1)Based on discounted fixed and determinable future payments of cash.

(2)Based on the closing stock price of Civitas common stock on January 2, 2024.

(3)Amounts represent non-cash investing activities until such time payments are made, as applicable. Refer to Note 5 - Debt for additional information.

(4)Amounts represent non-cash financing activities.

Preliminary Purchase Price Allocation (in thousands)
Assets Acquired
Proved properties			$	1,855,909
Unproved properties			231,627
Other property and equipment			666
Right-of-use assets			4,049
Total assets acquired			$	2,092,251
Liabilities Assumed
Accounts payable and accrued expenses			$	2,000
Crude oil and natural gas revenue distribution payable			28,423
Asset retirement obligations			40,157
Lease liability			4,049
Total liabilities assumed			74,629
Net assets acquired			$	2,017,622

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

Final Purchase Price Allocation (in thousands)
Assets Acquired
Cash and cash equivalents			$	30,671
Accounts receivable - crude oil and natural gas sales			86,262
Accounts receivable - joint interest and other			4,463
Proved properties			2,150,872
Unproved properties			115,802
Other property and equipment			520
Right-of-use assets			30,393
Total assets acquired			$	2,418,983
Liabilities Assumed
Accounts payable and accrued expenses			$	110,022
Production taxes payable			10,320
Crude oil and natural gas revenue distribution payable			75,267
Asset retirement obligations			8,299
Lease liability			30,393
Total liabilities assumed			234,301
Net assets acquired			$	2,184,682

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

Consideration (in thousands, except shares and per share amount)
Cash consideration			$	1,502,880
Shares of common stock issued			13,538,472
Closing price per share(1)			$	73.14
Equity consideration			$	990,204
Total consideration			$	2,493,084

_______________________

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

Final Purchase Price Allocation (in thousands)
Assets Acquired
Cash and cash equivalents			$	6,543
Accounts receivable - crude oil and natural gas sales			105,509
Accounts receivable - joint interest and other			30,415
Prepaid expenses and other			17,930
Proved properties			2,334,678
Unproved properties			300,859
Other property and equipment			12,827
Right-of-use assets			626
Total assets acquired			$	2,809,387
Liabilities Assumed
Accounts payable and accrued expenses			$	157,606
Production taxes payable			9,692
Crude oil and natural gas revenue distribution payable			68,094
Ad valorem taxes			1,407
Asset retirement obligations			28,612
Lease liability			626
Deferred revenue			50,266
Total liabilities assumed			316,303
Net assets acquired			$	2,493,084

Schedule of Pro Forma Financial Information

The following unaudited pro forma financial information (in thousands, except per share amounts) represents a summary of the consolidated results of operations for the three and nine months ended September 30, 2023, assuming the Vencer Acquisition had been completed as of January 1, 2023 and the Hibernia and Tap Rock acquisitions 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 Vencer, Hibernia, and Tap Rock acquisitions had been effective as of those dates, or of future results, and includes certain nonrecurring pro forma adjustments that were directly related to these business combinations.

						Three Months Ended September 30, 2023												Nine Months Ended September 30, 2023
Total revenue						$	1,448,735											$	3,886,210
Net income						278,564												843,161
Earnings per common share - basic						$	2.74											$	8.35
Earnings per common share - diluted						2.72												8.29

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

+ Details

Name:	us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

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

+ Details

Name:	us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration