Civitas Solutions (CIVI) Announces $75M Share Buyback from Vitol

Civitas Resources, Inc. (NYSE: CIVI) (“Civitas” or the “Company”), today announced the execution of a definitive agreement to repurchase approximately 1.04 million shares of its common stock from Vitol at a price of $72.00 per share, totaling $75 million. Civitas’ acquisition of certain oil and gas assets in the Permian Basin from Vencer Energy, LLC, a Vitol investment, closed on January 2, 2024, in exchange for approximately 7.2 million shares of Civitas stock along with $1.55 billion in cash ($1 billion paid at closing and a remaining $550 million payable on January 3, 2025). Along with other open market sales since the first of the year, the repurchase brings Vitol’s current equity position in Civitas to less than 2% of Civitas’ outstanding shares.

Combined with share repurchases in the first quarter of 2024, Civitas has now bought back $142 million worth of its shares (2.07 million shares at an average price of $68.56) year-to-date. Following the completion of the transaction, Civitas’ remaining share repurchase authorization will be approximately $338 million through the end of 2024.

In addition to the share repurchases, Civitas has agreed to pay $75 million of its $550 million deferred payment obligation to Vitol prior to the due date. Of this amount, the Company will pay $37.5 million in May 2024 and plans to pay an additional $37.5 million in July 2024. The remaining $475 million will remain payable to Vitol on or before January 3, 2025.

You May Also Be Interested In

• TDS drops bid for Array Digital Infrastructure minority shares
• Calix names Juergen Lindner as chief marketing officer
• BiomX to rename itself Tessera Defense, ticker changes to HLSQ