DENVER - Civitas Resources, Inc. (NYSE: CIVI), an independent oil and gas producer, announced the signing of a definitive agreement to repurchase approximately 876 thousand shares of its common stock from NGP Tap Rock Holdings, LLC and its affiliates. The repurchase, at a price of $64.54 per share, is expected to be finalized in early March 2024.
This transaction, approved by Civitas's Board of Directors, will result in NGP no longer holding any shares in the company. NGP's initial investment in Civitas originated from the mid-2023 acquisition of Tap Rock Resources, LLC by Civitas.
Civitas's CEO, Chris Doyle, commented on the repurchase, stating, "Returning significant cash to shareholders is one of our strategic pillars as a Company." He highlighted that over the past two years, Civitas has returned over $1.5 billion to shareholders through share repurchases and dividends.
Doyle also emphasized the company's focus on utilizing generated free cash flow for future share buybacks, enhancing the balance sheet, and maintaining a competitive dividend.
Following the completion of this share repurchase, Civitas will have approximately $425 million remaining in its share repurchase authorization through the end of 2024.
Civitas Resources, Inc. is known for its development in the Denver-Julesburg and Permian Basins and is recognized as Colorado's first carbon-neutral oil and gas producer.
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