Civitas Resources Announces Offering Of New Senior Notes; To Enter Permian Basin

(RTTNews) - Civitas Resources Inc. (CIVI) announced that it intends to offer $1.350 billion in aggregate principal amount of senior unsecured notes due 2028 and $1.350 billion in aggregate principal amount of senior unsecured notes due 2031 in a private placement.

The company expects to use the net proceeds from the Offering, together with cash on hand and borrowings under the company's Credit Facility, to fund a portion of the consideration for the Acquisitions.

In a separate press release, Civitas Resources said it agreed to acquire oil producing assets in the Midland and Delaware Basins of west Texas and New Mexico.

The agreements were signed with affiliates of Hibernia Energy III, LLC and Tap Rock Resources, LLC for total consideration of about $4.7 billion.

Both transactions are subject to customary terms and conditions and are expected to close in the third quarter of 2023 with effective dates of July 1, 2023.