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| And I'm excited to see what the team can deliver |
| There are likely some synergies that have not been baked into that number with Vencer volumes coming over, but we feel very confident in how we exited the year |
| You all continue to have among the best payouts, even notable that this obviously this great NGP buyback and the leading dividend yield |
| We've high-graded some rigs out in the Midland Basin, seeing some improvements on drilling times by 20% |
| Just expect us to continue this strong track record of returning cash to shareholders through cycles, and like Chris said, and this is all of the above philosophy |
| We like the production profile growing a little bit through the year, have started out the year very strong, coming off a really strong exit |
| I think it's also setting up because of the permitting situation, the Box Elder CAP approved, the Lowry CAP set to get approved this year, the Arapa CAP maybe late this year, early next that you then have really strong confidence in being able to allocate capital in that area |
| And for all those reasons, I mean, we think our equity right now represents a very compelling entry point and Civitas is well positioned as good as anybody to capitalize on that |
| We are differentiated from our peers through scale, asset durability, cash returns to shareholders and an employee base that consistently delivers |
| as we more than doubled our production, doubled our reserves and doubled our inventory of high-return development wells |
| That's why you see us 60% of our capital in the first half of the year because we think we can bring wells on a lot faster, and that's going to be a better return for our shareholders |
| An exceptional team, high-quality assets, inventory depth, a strong balance sheet, significant free cash flow and a track record of returning that cash to owners through cycle |
| Neil, if you look at what we've done to date, we have an extremely strong track record of doing so and returning cash to shareholders really as good as anybody |
| What our teams were able to accomplish operationally and financially amidst the ongoing transformation at Civitas is remarkable |
| While our equity valuation is yet to catch up to our new asset base, we're confident we'll close this gap and deliver for our shareholders for years to come |
| The second is the enhanced well productivity that we saw in the DJ, that's making for a much more capital-efficient program in 2024 |
| DJ basin volumes outperformed expectations once again with strong productivity in our Watkins area, which is in the southern part of our DJ acreage |
| And that's proven by the way that we exited the year at 120,000 barrels a day for the month of December and the strong entrance into this year |
| We took over operatorship of the Midland Basin assets late in the fourth quarter and our early performance is encouraging as we're already seeing efficiencies through reduced drilling days and improved cycle times |
| I'm confident we'll achieve similar operational improvements throughout the year |
| And third, maintaining our industry-leading shareholder returns while also improving our balance sheet |
| Needless to say, I'm very excited about the opportunity ahead of us in the Permian |
| We believe this is a tremendous investment opportunity considering the quality of our asset base and our low cost structure |
| Finishing up 2023, Civitas continued building a sustainable business, enhancing our environmental health and safety performance |
| We're excited to get another quarter under our belt and continue to build that track record, a track record that we've built in the DJ, we want to replicate in the Permian |
| This agreement represents over $100 million in incremental value to Civitas over the next five years, and we're excited about it |
| I'm super proud of what the team was able to deliver |
| These planned improvements were achieved through optimized activity levels and reduced cycle times across the business along with productivity enhancements in the DJ |
| We are always tweaking completion design, development, spacing and how we flow back wells, how we bring wells on and the team has done a phenomenal job getting stronger every single quarter |
| So we're excited about it |
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| The remaining 40% of our anticipated CapEx will be allocated to the DJ, where our core Watkins development area continues to impress |
| And what we saw was the degradation in that third mile just didn't show up or didn't -- certainly didn't show up to the level that we had risk |
| Before we move to Q&A, I want to give a quick shout out to our field teams who have managed through some incredibly challenging weather over the last couple of months |
| And while our DJ Basin assets were and continue to perform exceptionally well, we have limited flexibility in how we allocate our capital |
| There are many companies that have tried to do what we are doing and not been able to deliver |
| Fourth quarter Permian production was impacted by facility upgrades to some of our higher oil cut production in the Delaware |
| We've significantly transformed Civitas over the last year and our future has never been brighter |
| We had going into that risk the additional mile |
| Highlighted by our team recently limiting downtime in the DJ during an extreme weather event, where temperatures reached 30 below zero |
| But it will create a little bit of lumpiness |
| I guess if we ignore the effects of Vencer deal, would you expect your first quarter Permian volumes to be directionally down versus that exit rate? Or do you think you can sort of maintain that level? Chris Doyle So if you look at our full year guide of right at about 170,000 BOE per day, we anticipate a little bit of downtime, obviously, for weather in the first quarter |
| It certainly feels like there could be a lot of low-hanging fruit from an operational perspective |
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