Civitas Resources, Inc. Repurchases $300 Million of its Common Stock

Civitas Resources, Inc. CIVI ("Civitas" or the "Company"), today reported that it has agreed to repurchase approximately 4.9 million shares of its common stock, par value $0.01 per share (the "Common Stock") at a price per share of $61.00, resulting in aggregate consideration of approximately $300 million (the "Repurchase") from its largest shareholder, Canada Pension Plan Investment Board ("CPP Investments").

Civitas CEO Chris Doyle said, "Today's action provides an efficient mechanism to repurchase our shares at a compelling valuation and is consistent with our commitment to return significant cash to shareholders. Our capital structure is strong, with an industry-leading leverage ratio, significant cash on hand and ample liquidity to fund our high-return asset developments. As we continue to generate future free cash flow, we will consider all options to opportunistically return cash to our shareholders."

As of December 31, 2022 and prior to the Repurchase, Civitas had approximately 85.1 million shares of Common Stock outstanding. Following the Repurchase, Civitas will have approximately 80.2 million shares of Common Stock outstanding. The Company's base and variable dividend framework remains unchanged; accordingly, shareholders are expected to realize the benefit from a 6% reduction in share count following this transaction. Following the Repurchase, CPP Investments will remain the Company's largest shareholder and will own approximately 21% of the Common Stock.