Civitas Resources has announced the completion of its acquisition of oil and gas assets from Vitol-backed Vencer Energy.  

As per the initial announcement in October 2023, the cash and stock deal was valued at $2.1bn. 

Under the terms of the agreement, Civitas issued 7.18 million shares of common stock to Vencer and paid $1bn in cash.  

Additionally, a deferred cash payment of $550m is scheduled for 3 January 2025.  

Civitas intends to utilise existing cash reserves or borrowings to pay for the acquisition.  

The acquired assets are situated in the prolific Midland Basin of West Texas.  

The acquisition expands Civitas' presence in the region, adding approximately 44,000 net acres and a production capacity of around 62,000 barrels of oil equivalent per day (mboed). 

At the time of announcement, Civitas said the deal will boost its production capacity to 325–345mboed and add around 400 gross development sites to its portfolio.  

The company’s estimated production from Permian assets alone is expected to reach approximately 170mboed by 2024.  

The acquisition brings Civitas' total oil development locations in the Permian Basin to more than 1,200, marking a significant milestone in its growth strategy. 

Civitas president and CEO Chris Doyle said: “Civitas now holds high-quality, scaled asset positions in both the Permian and DJ basins.  

“Our assets, in combination with our strong balance sheet and low-cost structure, place us in a solid position to continue to deliver the industry’s best shareholder cash return programme over the long term.” 

In mid-2023, reports emerged that Civitas was in advanced talks to acquire NGP Energy Capital Management’s oil and gas operations in the Permian basin. 

As part of the deal, Tap Rock Resources and Hibernia Resources, two oil producers with a focus on the Permian region, could be acquired from NGP for around $5bn, including debt.