Civitas Resources to draw on revolver for purchase of oil assets

By Sara Rosenberg

New York, June 20 – Civitas Resources Inc. plans to draw about $600 million under its undrawn revolving credit facility to help fund the acquisitions of oil producing assets in the Midland and Delaware Basins of west Texas and New Mexico, according to a news release.

Other funds for the acquisitions will come from $1.35 billion of senior notes due 2028, $1.35 billion of senior notes due 2031 and about $400 million of cash on hand.

Civitas is buying a portion of Tap Rock Resources LLC’s Delaware Basin assets for $2.45 billion, which includes $1.5 billion in cash and about 13.5 million shares of Civitas common stock valued at roughly $950 million, subject to customary anti-dilution and purchase price adjustments.

Additionally, Civitas is purchasing Hibernia Energy III LLC’s Midland Basin assets for $2.25 billion in cash, subject to customary purchase price adjustments.

Both transactions are expected to close in the third quarter, subject to customary conditions.

Civitas is a Denver-based carbon neutral oil and gas producer.

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