Civitas Resources Inc (CIVI) 2025 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to Civitas Resources First Quarter 2025 Earnings Conference Call and Webcast. My name is Rochelle, and I will be your operator for today's call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. (Operator Instructions) Please be advised that today's conference call is being recorded.

您好，感謝您的支持。歡迎參加 Civitas Resources 2025 年第一季財報電話會議和網路廣播。我叫羅謝爾，今天我將擔任您的電話接線生。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。（操作員指示）請注意，今天的電話會議正在錄音。

I will now turn the call to Brad Whitmarsh, Head of Investor Relations. Brad, please go ahead.

現在我將電話轉給投資人關係主管布拉德‧惠特馬什 (Brad Whitmarsh)。布拉德，請繼續。

Thanks, Rochelle. Good morning, everyone, and thank you for joining us. Yesterday, we released our first quarter 2025 results, along with some supplemental materials and our 10-Q. hopefully, you've had a chance to look through these materials, all of which are available currently on our website.

謝謝，羅謝爾。大家早安，感謝大家的收看。昨天，我們發布了 2025 年第一季業績，以及一些補充資料和 10-Q。希望您有機會瀏覽這些資料，所有這些資料目前都可以在我們的網站上找到。

This morning, our CEO, Chris Doyle, will make our prepared remarks, and joining us for Q&A is our CFO, Marianella Foschi, and other members of management. We will conduct a question and answer session after our opening comments, and as always, please limit your time to one question and one follow-up so we can work through the list efficiently.

今天上午，我們的執行長 Chris Doyle 將發表準備好的講話，我們的財務長 Marianella Foschi 和其他管理成員將參加問答環節。我們將在開場發言後進行問答環節，和往常一樣，請將您的時間限制在一個問題和一個後續問題上，以便我們有效地處理清單。

We will make certain forward-looking statements today, and those are subject to risk uncertainties that could cause actual results to differ materially from our projections. Make sure you read our full disclosures regarding these statements in our most recent SEC filings. Also, we may refer to certain non-GAAP financial metrics. We do provide reconciliations to the appropriate GAAP measures in yesterday's earnings release and 10-Q as well.

我們今天將做出某些前瞻性陳述，這些陳述受風險不確定性的影響，可能導致實際結果與我們的預測有重大差異。請務必閱讀我們最近向美國證券交易委員會提交的文件中有關這些聲明的完整披露。此外，我們可能會參考某些非 GAAP 財務指標。我們確實在昨天的收益報告和 10-Q 中提供了與適當的 GAAP 指標的對帳。

With that, I'll turn the call over to Chris.

說完這些，我會把電話轉給克里斯。

Morning everyone and thanks for joining us. First, I would like to welcome Clay Carrell, our new President and Chief Operating Officer. Yesterday was his first day on the job and Clay is here with us for this morning's call. Clay is a proven leader and he has deep operating experience deploying best practices to safely reduce costs, improve cycle times, and lead teams to enhance productivity and margins. I am confident that Clay will be a great addition to our team. I know he is very excited to get started.

大家早安，感謝大家的參與。首先，我歡迎我們的新任總裁兼營運長克萊‧卡雷爾 (Clay Carrell)。昨天是他上班的第一天，克萊今天早上也來參加我們的電話會議。Clay 是一位經驗豐富的領導者，他在部署最佳實踐以安全地降低成本、縮短週期時間以及帶領團隊提高生產力和利潤率方面擁有豐富的營運經驗。我相信克萊將會成為我們團隊的一大助力。我知道他非常興奮能夠開始。

Establishing our original 2025 guidance, we recognized the multiple supply and demand forces causing significant uncertainty in the global economy and therefore our industry. We planned for it and removed around $150 million of CapEx as compared to 2024, focusing our attention on capital discipline and lower reinvestment rates rather than maintaining 2024's production level. This is a challenging time, yet we remain well-positioned to navigate the current environment with a foundation of high quality, low break-even assets.

在製定我們最初的 2025 年指導方針時，我們認識到多種供給和需求力量導致全球經濟以及我們的行業出現重大不確定性。我們為此做好了計劃，與 2024 年相比削減了約 1.5 億美元的資本支出，將注意力集中在資本紀律和降低再投資率上，而不是維持 2024 年的生產水平。這是一個充滿挑戰的時期，但我們仍然能夠憑藉高品質、低損益平衡資產的基礎，很好地應對當前的環境。

In addition, we have robust financial liquidity, a strong hedge book, and significant capital flexibility to adjust our plans as necessary. We remain confident in our full-year outlook, but at the same time we are positioned to reduce activity levels should current market conditions deteriorate further. These conditions not only include the oil price but also the corresponding service cost environment.

此外，我們擁有強勁的財務流動性、強大的對沖帳簿和顯著的資本靈活性，可以根據需要調整我們的計劃。我們對全年前景仍然充滿信心，但同時，如果當前市場狀況進一步惡化，我們準備減少活動水平。這些條件不僅包括油價，還包括相應的服務成本環境。

Additionally, we are taking meaningful steps today to strengthen our business and improve our performance. First, we remain focused on running the business to deliver sustainable free cash flow. Yesterday we announced a comprehensive cost optimization and efficiency plan to generate an incremental $100 million of annual free cash flow. As part of this effort, we are focusing on every opportunity to safely lower costs, enhance productivity, reduce cycle times, and optimize production operations.

此外，我們今天正在採取有意義的措施來加強我們的業務並提高我們的業績。首先，我們繼續專注於經營業務，實現可持續的自由現金流。昨天，我們宣布了一項全面的成本優化和效率計劃，以產生每年 1 億美元的增量自由現金流。作為這項努力的一部分，我們正專注於抓住每一個機會，安全地降低成本、提高生產力、縮短週期時間並優化生產營運。

In addition, we see substantial opportunity to improve our cash cost structure and our netbacks, including optimizing our commercial and midstream agreements. As an example of this, our teams recently executed a new oil gathering agreement for transport out of the DJ Basin, which will help increase free cash flow by approximately $15 million each year. In total so far, we have identified over $100 million in incremental free cash flow on a run rate basis, with approximately 40% of this amount benefiting the second half of 2025. I look forward to sharing our progress on this initiative in the months ahead.

此外，我們看到了改善現金成本結構和淨回值的巨大機會，包括優化我們的商業和中游協議。例如，我們的團隊最近執行了一項新的石油收集協議，將石油運出 DJ 盆地，這將有助於每年增加約 1500 萬美元的自由現金流。到目前為止，我們總計已按運行率確定了超過 1 億美元的增量自由現金流，其中約 40% 將受益於 2025 年下半年。我期待在未來幾個月分享我們在這項舉措上取得的進展。

Second, we continue to prioritize protecting and strengthening the balance sheet, which we believe is necessary to sustain shareholder returns over the long haul. This is why we set up our plans to start the year prioritizing our free cash flow after the dividend to de-lever, which is even more important now with the current market. Consistent with that, we significantly expanded our hedge position and are now nearly 50% hedged on crude oil for the remainder of the year. Collectively, our hedge positions today are worth nearly $200 million.

其次，我們持續優先保護和強化資產負債表，我們認為這對長期維持股東回報是必要的。這就是為什麼我們制定計劃，在年初優先考慮股息後的自由現金流以降低槓桿率，這在當前市場中更為重要。與此一致，我們大幅擴大了對沖頭寸，目前已對今年剩餘時間的原油對沖頭寸接近 50%。總的來說，我們今天的對沖頭寸價值近 2 億美元。

Our year-end 2025 net debt target of $4.5 billion is unchanged, and at current oil prices, we'll achieve that goal with our remaining free cash flow and our planned investment proceeds of $300 million. We were very encouraged with the interest we saw in our investment process early this year, but the pullback in oil prices did not allow us to transact at a value we felt represented the quality of those assets. Given our diverse portfolio, we remain confident in achieving our investment target for the year, but let me be clear, we are not price takers. We'll remain patient and solely focus on maximizing the value of our assets for our shareholders.

我們 2025 年底 45 億美元的淨債務目標保持不變，以目前的油價，我們將利用剩餘的自由現金流和計劃的 3 億美元投資收益來實現這一目標。我們對今年年初在投資過程中看到的興趣感到非常鼓舞，但油價回落使得我們無法以我們認為代表這些資產品質的價格進行交易。鑑於我們多元化的投資組合，我們仍然有信心實現今年的投資目標，但我要明確指出，我們不是價格接受者。我們將保持耐心，專注於為股東實現資產價值最大化。

Bolt-ons and acquisitions have been a key part of our story, and we're extremely pleased with the scale and quality of the portfolio that we've built. Today, however, we are singularly focused on execution and optimization of our assets, and we do not plan to be buyers in the asset market for the foreseeable future.

附加和收購一直是我們故事的關鍵部分，我們對所建立的投資組合的規模和品質感到非常滿意。然而，今天我們只專注於資產的執行和優化，並且在可預見的未來我們不打算成為資產市場的買家。

Our third key priority for the year was returning cash to shareholders, a critical piece of the Civitas strategy. The near-term focus on de-levering this year's return was designed primarily to come from our robust and steady base dividend. During the quarter, we did complete our existing 10b5 repurchase program, buying back nearly 2% of our shares outstanding. As we reach our $4.5 billion net debt target, we have the opportunity to shift more of our free cash flow to additional share buybacks going forward.

我們今年的第三個重點任務是向股東返還現金，這是 Civitas 策略的關鍵部分。近期重點關註今年回報的去槓桿化，主要來自於我們強勁而穩定的基礎股息。在本季度，我們確實完成了現有的 10b5 回購計劃，回購了近 2% 的流通股。當我們達到 45 億美元的淨債務目標時，我們有機會將更多的自由現金流轉移到未來額外的股票回購中。

Turning to first quarter results, production was slightly lower than expectations on lower capital, and cash operating costs were higher than planned. On the production side, first quarter volumes show the effect of low activity levels at the end of last year into the start of 2025, particularly in the DJ. For the second quarter, we expect the oil to grow 5%, led by growth in the Permian Basin. Momentum should continue into the third quarter, benefiting from a high till count in the middle part of the year.

談到第一季的業績，由於資本較低，產量略低於預期，現金營運成本高於計畫。在生產方面，第一季的產量顯示出去年年底至 2025 年初活動水準低的影響，尤其是在 DJ。對於第二季度，我們預計石油產量將成長 5%，主要得益於二疊紀盆地的成長。受惠於年中收銀機數量的增加，這股動能將持續到第三季。

Capital performance in the first quarter was strong, and our teams have delivered significant efficiencies to start the year. In the Permian, as we shift 40% of our activity to the Delaware, the team is drilling 10% faster than expected. On the completions front in the Midland Basin, last quarter our teams delivered a 5% sequential increase in throughput, utilizing Simulfrac operations.

第一季的資本表現強勁，我們的團隊在年初就實現了顯著的效率。在二疊紀，隨著我們將 40% 的活動轉移到德拉瓦州，團隊的鑽探速度比預期快 10%。在米德蘭盆地的完井方面，上個季度我們的團隊利用 Simulfrac 作業實現了吞吐量連續 5% 的成長。

And in the DJ, we continue to accelerate completion cycle times, while also leveraging a higher percentage of local sand. All of these efforts are delivering sustainable cost savings to the business. We did shift some capital from Q1 into Q2 in the DJ, which will flow through to second quarter production, as reflected in our guide.

在 DJ 專案中，我們繼續加快完工週期，同時利用更高比例的當地沙子。所有這些努力都為企業帶來了可持續的成本節約。我們確實將部分資本從第一季轉移到了 DJ 的第二季度，這些資本將流入第二季度的生產，正如我們的指南所反映的那樣。

On the cash cost side, we had some operational challenges with contracted water takeaway in the Permian in the first quarter. The team did a good job of supplementing with other solutions to minimize volume impact, but this elevated our first quarter costs. We'll be pursuing cost recovery of these incremental dollars. As our volumes grow and we implement our cost optimization initiatives, cash costs on a per BOE basis will decline through the remainder of the year, which gives us confidence to maintain our full year guidance.

在現金成本方面，第一季我們在二疊紀盆地的合約取水方面遇到了一些營運挑戰。團隊很好地補充了其他解決方案以最大限度地減少數量影響，但這增加了我們第一季的成本。我們將努力收回這些增量資金的成本。隨著產量的成長和成本優化措施的實施，今年剩餘時間內每桶油當量的現金成本將下降，這使我們有信心維持全年指引。

In closing, as we navigate through a volatile market, I have great confidence in our team and what we can accomplish together, but there is important work to be done. We're taking meaningful steps today to further improve our cost structure and operations, enhancing returns, protecting our free cash flow, and protecting our balance sheet. Importantly, we maintain the flexibility to respond to changing market conditions. All of this enhances the durability and strength of Civitas.

最後，當我們在動盪的市場中前進時，我對我們的團隊以及我們共同取得的成就充滿信心，但仍有重要的工作要做。今天，我們正在採取有意義的措施，進一步改善我們的成本結構和運營，提高回報，保護我們的自由現金流，並保護我們的資產負債表。重要的是，我們保持靈活性以應對不斷變化的市場條件。所有這些都增強了 Civitas 的耐用性和強度。

Operator, we're now ready to take questions.

接線員，我們現在可以回答問題了。

Question-and-Answer Session

問答環節

(Operator Instructions)

（操作員指示）

Gabe Daoud of TD Cowen.

TD Cowen 的 Gabe Daoud。

Thanks. Hey, morning, everyone. I appreciate the time and prepared remarks. Chris was just hoping to maybe get a bit more color on the rest of 2025, and I guess specifically your comfort level in executing on the production and free cash flow ramp the rest of this year, which is key in enabling you guys to hit your debt target. Just maybe some more thoughts around that I think would be helpful?

謝謝。大家早安。我感謝您抽出時間和準備好的發言。克里斯只是希望對 2025 年剩餘時間的情況有更多的了解，我想具體來說，就是你們在執行今年剩餘時間的生產和自由現金流方面的舒適度，這對於你們實現債務目標至關重要。也許我認為更多的思考會有幫助？

Sure. Thanks for the question, Gabe. As we came into the year, we tried to level load our program better than what we inherited the previous year, and we were split first half to second half capital about 55% to 45%. That's giving us quite a few tills here in the second quarter will be the most tills throughout the year, followed by a strong third quarter, and so that is building up that second half production growth. In the first quarter, we were slightly below, about a percent below our expectations. A lot of that due to weather.

當然。謝謝你的提問，Gabe。進入新的一年，我們嘗試使我們的計劃比上一年更好地平衡負荷，並將上半年和下半年的資本分配比例定為 55% 比 45%。這就為我們帶來了相當多的收銀機，第二季度將是全年最多的，隨後是強勁的第三季度，因此這將為下半年的產量成長奠定基礎。第一季度，我們的業績略低於預期，比預期低了約百分之一。這很大程度上是由於天氣原因。

I mentioned some of the capital that moved into the second quarter, pushing some tills in the DJ. That's further enhancing third quarter growth in the fourth quarter. I think the big thing here, Gabe, is we have very strong confidence in the program, confidence in our ability to deliver our guidance, but we're not blind to the continued volatility in the macro. Our initial plan was set up for that volatility, and that certainly continued, and so we will continue to look at the macro, and if we see the macro deteriorating further, we'll adjust activity, and so that will impact the second half as well, but as we sit here today, unless we see sustained mid to low 50s in an oil price, we feel very confident in executing the rest of the year.

我提到了一些進入第二季的資本，推動了 DJ 的一些收銀機。這進一步促進了第四季第三季的成長。加布，我認為這裡最重要的是我們對該計劃非常有信心，對我們提供指導的能力有信心，但我們並沒有對宏觀的持續波動視而不見。我們最初的計劃是針對這種波動而製定的，而且這種波動肯定會持續下去，因此我們將繼續關注宏觀經濟，如果我們發現宏觀經濟進一步惡化，我們將調整活動，這也會影響下半年，但正如我們今天所見，除非我們看到油價持續在 50 年代中期至低期徘徊，否則我們對今年剩餘時間的執行非常有信心。

Okay. Okay. Thanks for that. That's helpful. My follow-up was going to be around what the program would maybe look like under that scenario that you mentioned, Chris, if oil were to, let's say, again, it's been pretty volatile, but let's say oil gets to $55 or below $55 for a sustained period, what would Civitas do in response? What would activity levels look like, and maybe rank like order of importance in that scenario? I'd imagine it's still paying down debt, but again, we'd just love to hear your thoughts on that, if the macro deteriorates more.

好的。好的。謝謝。這很有幫助。我的後續問題是，在您提到的情況下，該計劃可能會是什麼樣子，克里斯，如果石油價格再次大幅波動，但假設石油價格持續達到或低於 55 美元，Civitas 會採取什麼應對措施？在這種情況下，活動水平會是什麼樣子，以及重要性排序如何？我想它仍在償還債務，但如果宏觀經濟進一步惡化，我們很想聽聽您對此的看法。

Sure. And as you can imagine, I'm sure every company out there has run a number of scenarios given just the up and down with the oil prices. So as we think about sustained oil below $55, the first dollar that comes out, it's all going to be related to returns. The first dollar that will come out will likely be completion-related, and we'd look to build some ducks in the DJ. That would position us to maintain some productive capacity. Again, it's so volatile, you could be back up over $60, and so we wouldn't want to shut down the entire program. Now, if that was sustained, certainly the next dollar out would be drill dollars.

當然。正如您所想像的，我相信每家公司都已經考慮到油價的漲跌而設想過許多情景。因此，當我們考慮油價持續跌破 55 美元時，即出現的第一個美元，這一切都與回報有關。第一筆支出很可能與完成有關，我們希望在 DJ 中建立一些鴨子。這將使我們能夠保持一定的生產能力。再說一次，它的波動性非常大，可能會超過 60 美元，所以我們不想關閉整個程序。現在，如果這種情況持續下去，下一筆支出肯定是鑽探費用。

We're not in the business to build up large duck inventory, but that's how we see the immediate terms, Gabe, of pulling capital out, and then certainly, as we think through our Permian assets, the first half of this year, 40% of our activities directed to the Delaware. Those are some of the best returns, most resilient returns in our portfolio, so we're excited about that, but we would continue to look to pare down any investments that just don't fly at low 50s.

我們不是為了建立大量的鴨子庫存而做生意，但這就是我們對撤出資本的直接看法，加布，然後當然，當我們考慮我們的二疊紀資產時，今年上半年，我們 40% 的活動都針對特拉華州。這些是我們投資組合中最好的回報、最具彈性的回報，因此我們對此感到興奮，但我們會繼續尋求削減任何在 50 歲以下無法實現的投資。

Okay, great. Thanks for that. Thanks, everyone.

好的，太好了。謝謝。謝謝大家。

Thanks, Gabe.

謝謝，加布。

Zach Parham with JPMorgan.

摩根大通的 Zach Parham。

Hey, thanks for taking my question. First, I just wanted to ask on OpEx, LOE was above expectations in the quarter due to some water issues in the Permian. The 2Q guide was a bit higher than we'd expected, but you maintained the four-year cost guide. Can you just talk about the moving pieces there and how you expect LOE to trend through the year?

嘿，謝謝你回答我的問題。首先，我只想問一下營運支出，由於二疊紀盆地的一些水問題，本季的營運成本超出預期。第二季的指導價格比我們預期的要高一點，但您維持了四年成本指引價格。您能否簡單談談那裡的變化以及您預計 LOE 全年的趨勢如何？

Sure, and it really relates mainly to a contractor that we have in the Permian unable to hit their contractual obligations, and the team had to supplement and add some redundant takeaway capacity, which allowed us to minimize any type of volume impact.

當然，這實際上主要與我們在二疊紀的承包商無法履行合約義務有關，團隊必須補充和增加一些冗餘的外賣能力，這使我們能夠最大限度地減少任何類型的銷售影響。

We have contractual protections that will allow us to recover some of those costs, and that's our plan, and it's related with the Hawley development. As we brought on the 30-well Hawley development and some activity behind it, we'll see water volumes peak and start to diminish here later this quarter, and that will give us the flexibility to pull off some of that temporary rental equipment to supplement our contractor and see LOE drop in the second half of the year.

我們有合約保護，可以讓我們收回部分成本，這就是我們的計劃，它與霍利開發項目有關。隨著我們啟動 30 口井的 Hawley 開發項目及其背後的一些活動，我們將看到水量在本季度晚些時候達到峰值並開始減少，這將使我們能夠靈活地撤出一些臨時租賃設備來補充我們的承包商，並看到 LOE 在下半年下降。

At the same time, as we're growing volumes, per BOE unit cost is going to come down as well. And I'd say, Zach, the last piece of this is, as we think through our cost optimization plan, about half of that is directed to our cost structure, and we'll start to see those savings kick in in the second half as well. And so that gives us confidence that we'll be well within the current cost guidance.

同時，隨著產量的成長，每桶油當量的單位成本也將下降。我想說，扎克，最後一點是，當我們考慮成本優化計劃時，大約有一半的成本是針對我們的成本結構，我們也將在下半年開始看到這些節省的效果。因此，我們有信心，我們將完全遵守當前的成本指引。

Thanks, Chris. My follow-up, I wanted to ask on the $300 million asset sale target, in your prepared remarks you said you remained confident in achieving that target, but also that the upstream market was challenged and you weren't going to be price takers. Can you just tie those two comments together? What does that mean for asset sales? What are you looking to sell here that still gives you confidence in achieving that plan?

謝謝，克里斯。我的後續問題是，我想問一下關於 3 億美元資產出售目標的問題，您在準備好的發言中表示，您仍然有信心實現該目標，但上游市場面臨挑戰，您不會接受價格。您能將這兩則評論連結在一起嗎？這對於資產出售意味著什麼？您希望在這裡銷售什麼才能讓您有信心實現該計劃？

Sure. Yeah, the macro just doesn't set up for upstream transactions very well. Concurrent with the previous process, we've also been running to ground non-producing assets. That's surface acreage, it's water infrastructure, other infrastructure investments that we could look to monetize that are less tied to the volatility on the upstream, and that gives us confidence to be able to pull some of that down.

當然。是的，巨集不能很好地適應上游交易。與先前的流程同時，我們也一直在淘汰非生產性資產。這是地表面積、水利基礎設施以及其他基礎設施投資，我們可以將其貨幣化，這些投資與上游的波動性關係較小，這使我們有信心將其中的一部分拉低。

Thanks, Chris.

謝謝，克里斯。

Thanks, Zach.

謝謝，扎克。

Scott Hanold with RBC.

加拿大皇家銀行的 Scott Hanold。

Yes, thanks. Chris, can you talk through what your priorities are in this uncertain macro environment? What should we think about as the primary goal for you all, just so we know where the flex points have to come from? Is it hitting that $4.5 billion debt target by the end of the year, so you'll need to do what you need to do to get there? Just give us a sense of how you think about how you prioritize various things you're looking at?

是的，謝謝。克里斯，您能談談在這種不確定的宏觀環境下您的優先事項是什麼嗎？我們該把什麼視為你們的首要目標，這樣我們才知道拐點從何而來？今年底，您是否能達到 45 億美元的債務目標？因此，您需要採取哪些措施才能實現這一目標？請讓我們了解一下您如何考慮對所關注的各種事物進行優先排序？

Sure. Our top priority is debt and to hit that absolute debt target by the end of the year. Having said that, we're not going to give up value on assets, just to hit the $4.5 billion, and we're not going to be blind to further deterioration of the macro. And so what we have is a strong balance sheet supported by very strong free cash flowing assets with a very strong hedge book. And so I would say our top priority, again, is that debt target, but won't do anything unnatural to hit it.

當然。我們的首要任務是償還債務，並在年底前實現絕對債務目標。話雖如此，我們不會為了達到 45 億美元而放棄資產價值，也不會對宏觀經濟的進一步惡化視而不見。因此，我們擁有強勁的資產負債表，由非常強大的自由現金流資產和非常強大的對沖帳簿支撐。因此我想再次強調，我們的首要任務是實現債務目標，但不會採取任何不自然的措施來實現它。

Okay. And what would you consider unnatural? I mean, look, is the fixed dividend worth that right now sacred? Or if we were in sort of a $50 environment, would that be up for potential consideration to reduce?

好的。您認為什麼不自然？我的意思是，你看，固定股利現在值這麼多錢嗎？或者如果我們處於 50 美元的環境中，是否會考慮降低？

Yes, we don't have any plans to touch the fixed dividend. We have cash flow protected down to $40 WTI, including that dividend. And so that's not on the table right now. And then in terms of unnatural, I'm really just speaking to value and selling assets into a low strip. We don't have the need to do that. We've got very few near-term maturities, and again, a very strong cash flowing asset.

是的，我們沒有任何計劃影響固定股利。我們的現金流已受到保護，低至 40 美元 WTI，包括股息。所以現在還不考慮這個。然後就非自然而言，我實際上只是在談論價值並將資產出售到低地帶。我們沒有必要這麼做。我們的短期到期債務很少，而且我們的資產現金流非常強勁。

Understood. Thank you.

明白了。謝謝。

Thanks, Scott.

謝謝，斯科特。

(Operator Instructions)

（操作員指示）

Oliver Huang with TPH.

TPH 的 Oliver Huang。

Good morning, Chris and team, and thanks for taking the questions. Maybe to start off with a quick follow-up to Scott's question, just wondering, what is the flex to alter the trajectory to hit the $4.5 billion net debt target by year-end if oil prices are tracking closer to $55? Is that going to come from less CapEx spend in the back half of the year, or does that just get pushed out to the right in terms of timing?

早安，克里斯和團隊，感謝你們回答問題。也許首先要快速跟進斯科特的問題，只是想知道，如果油價接近每桶 55 美元，那麼如何才能改變軌跡，到年底實現 45 億美元的淨債務目標？這是由於下半年資本支出減少所致，還是只是在時間上被延後了？

Hey, Oliver, thanks for the question. I think the way to think about it is we'll hit our $4.5 billion target at $60 oil. That includes the proceeds from the asset divestments. We're continuously looking for ways to accelerate that, and we have a lot of levers to do so. On the first side, we're aggressively working on cost reductions across the board, as we've discussed, and that will be accretive to where we end up on year-end net debt.

嘿，奧利佛，謝謝你的提問。我認為我們應該這樣想：當油價達到每桶60美元時，我們就能實現45億美元的目標。其中包括資產剝離的收益。我們一直在尋找加速這一進程的方法，我們有很多手段可以做到這一點。首先，正如我們所討論的，我們正在積極地全面削減成本，這將增加我們年底的淨債務。

As you know, we talked about the divestments. Volatility is not helpful to divest assets accretively. We feel very good completing the $300 target. By the end of the year, but like Chris said, we'll be value-driven, and if we see values that we like, we consider even going a little bit above that again if it's accretive.

如你所知，我們討論了資產剝離問題。波動性不利於增值性資產剝離。我們對於完成 300 美元的目標感到非常高興。到今年年底，但就像克里斯所說的那樣，我們將以價值為導向，如果我們看到我們喜歡的價值，我們甚至會考慮再稍微高於這個水平，如果它是增值的。

And lastly, we got the hedges that we did at the time we did them. We're up to about 50% hedged, and considering opportunistically adding to our hedge position, obviously, commodity price dependent. Look, as we progress through the year, we're keeping a very, very close pulse on a daily basis of what service costs bring. I think as we get closer to the price you referenced, mid or low 50s, we'll certainly adjust activity.

最後，我們得到了當時所做的對沖。我們的對沖率高達 50% 左右，並且正在考慮適時增加對沖頭寸，這顯然取決於商品價格。你看，隨著一年的進展，我們每天都密切關注服務成本帶來的影響。我認為，當我們接近您所提到的價格（50 美元左右）時，我們肯定會調整活動。

As a reminder, we already built our plan, keeping in mind in a lower commodity price environment, and we talked about that last quarter. I think most of this recent commodity price shift has allowed us to already absorb it in our pad economics in a way that those pads don't need a return threshold. Like I said, we can continue tracking it closely, and it's going to be service cost dependent, but some of it, to your point, could come from CapEx adjustments if the commodity price is deteriorating further.

提醒一下，我們已經制定了計劃，考慮到較低的商品價格環境，我們在上個季度討論過這個問題。我認為最近的大宗商品價格變化已經讓我們能夠將其吸收到我們的墊子經濟中，這樣這些墊子就不需要回報門檻了。就像我說的，我們可以繼續密切追蹤它，它將取決於服務成本，但正如你所說，如果商品價格進一步惡化，其中一些可能來自資本支出調整。

Okay. Thanks for that, color. For my second question, just wondering operationally in the Delaware, it feels like it's been close to a year since you all have had material levels of activity there. Just hoping that you all might be able to provide some detail in terms of some of the key things that you all are focusing on there to optimize productivity as you all enter development of that asset in a more meaningful way on a CIVI start to finish well?

好的。謝謝你，顏色。對於我的第二個問題，我只是想知道特拉華州的運作情況，感覺你們已經有近一年沒有在那裡進行實質活動了。只是希望你們能夠提供一些細節，說明你們所關注的一些關鍵事項，以便在 CIVI 從頭到尾以更有意義的方式進入該資產的開發時優化生產力？

Yes, sure. Thanks, Oliver. Yeah, as we laid out with the tap rock entry and some of the additional acres that we picked up in there, we took the time, rather than drill less capital efficient one-mile wells, took the time with ground game to extend those laterals and really enhance returns. These are already top returns within our portfolio, and we've taken that to a new level. Our team is off executing, as I mentioned in my remarks, better than expected. We're targeting known zones with known offset production and feel very confident about the returns for the capital that we're deploying there. Again, some of our best returns in our portfolio.

是的，當然。謝謝，奧利佛。是的，正如我們在佈置水龍頭岩石入口和在那裡獲得的一些額外土地時所做的那樣，我們花了一些時間，而不是鑽探資本效率較低的一英里井，而是花時間進行地面遊戲以延長這些水平井並真正提高回報。這些已經是我們投資組合中的最高回報，而且我們將其提升到了一個新的水平。正如我在演講中提到的，我們的團隊表現比預期的要好。我們的目標是已知的具有已知補償產量的區域，並且對我們在那裡部署的資本的回報非常有信心。再次，這是我們投資組合中一些最好的回報。

Sounds good. Thanks for the time.

聽起來不錯。謝謝你的時間。

Thanks, Oliver.

謝謝，奧利佛。

Leo Mariani with Roth.

Leo Mariani 和 Roth。

Hi. I just wanted to follow up a little bit on the DJ. It looks like DJ volumes were down pretty significantly in the first quarter versus the prior quarter. I think you've articulated some of those reasons. In your slide deck, you're talking about DJ volumes being flat again in the second quarter, which I guess maybe was a little bit surprising. Can you provide a little bit more color around that? Is there not much in the way of second quarter turn in line activity? How do you see DJ trending in the second half?

你好。我只是想稍微跟進一下 DJ 的情況。看起來第一季的 DJ 數量與上一季相比大幅下降。我認為您已經闡明了其中一些原因。在您的幻燈片中，您談到 DJ 銷量在第二季度再次持平，我想這可能有點令人驚訝。您能否對此提供更多詳細資訊？第二季的轉線活動是否沒有太多進展？您如何看待下半年 DJ 的趨勢？

Sure. Thanks, Leo. As we guided the first quarter, as we rolled out the plan, we were looking at a pretty prolonged time period with very few tills. You saw the full brunt of base decline. At the same time, we had some very productive wells in the Watkins area come off plateau. Coming off that plateau, those declines are higher, as we reflected in our 1Q guide. The 1% low to our expectations really driven by a number of weather events in both basins. That natural base decline then was as expected but pretty aggressive.

當然。謝謝，Leo。當我們指導第一季並推出計劃時，我們考慮了一個相當長的時間段，但收銀機卻很少。您已經看到了基礎下降的全部影響。同時，沃特金斯地區的一些高產油井產量已突破高原。正如我們在第一季指南中所反映的那樣，從這一穩定狀態開始，跌幅有所擴大。低於我們預期的 1% 實際上是由於兩個流域發生的一系列天氣事件造成的。當時的自然基數下降是意料之中的，但幅度相當大。

We also had some delays on tills that pushed some capital into the second quarter. That pushed some volumes out. Therefore, the second quarter is now flat. You'll see now with the engine restarted, some of that growth getting pushed to third quarter.

我們的收銀也出現了一些延遲，導致部分資金進入第二季。這導致一些卷冊被擠出。因此，第二季目前持平。現在你會看到，隨著引擎重新啟動，部分成長被推遲到第三季。

As a reminder, we went through four or five months of no tills in the DJ. We brought, like Chris said, a fair number of wells around April of last year. Then the next batch, which was really nothing, it was three wells late Q1. Obviously, pretty standing there for almost two quarters. The DJ is a higher decline asset out of the two assets. Just from a timing perspective, that's why you saw expected decline rates along with expected weather impacts for the last 10 years.

提醒一下，我們在 DJ 經歷了四、五個月的免耕期。正如克里斯所說，我們在去年四月左右發現了相當數量的油井。然後是下一批，其實沒什麼，是第一季末的三口井。顯然，漂亮地站在那裡已經將近兩個季度了。DJ 是兩種資產中跌幅較大的資產。僅從時間角度來看，這就是為什麼您會看到預期的下降率以及過去 10 年預期的天氣影響。

That's helpful. Moving over to the cost side, obviously, you guys have some initiatives to cut costs, which certainly seem encouraging. Have you all seen anything on the oil field service cost side yet on the local basin level? Obviously, it stripped down quite a bit. Activity hasn't exactly been robust as an industry in the DJ. Have you seen anything on leading edge kind of service cost changes?

這很有幫助。從成本方面來看，顯然你們採取了一些削減成本的舉措，這當然令人鼓舞。你們在當地盆地層級上看到任何油田服務成本方面的情況嗎？顯然，它被精簡了不少。作為 DJ 行業，其活動一直不太活躍。您是否看到過有關前沿服務成本變化的任何資訊？

Thanks for the question, Leo. This is critical. As we talk about oil in the mid to low 50s, you really need to know what the other end of that equation is. That's the OFS market. The entire team is working with our suppliers. We have a lot of flexibility on our capital program. That means that we can negotiate real time with the weakness and, as you said, with lower activity in both of the basins.

謝謝你的提問，Leo。這很關鍵。當我們談論 50 年代中期至早期的石油價格時，您確實需要知道這個等式的另一端是什麼。這就是 OFS 市場。整個團隊正在與我們的供應商合作。我們的資本計劃具有很大的靈活性。這意味著我們可以即時協商弱點，並且正如你所說，兩個盆地的活動都較低。

We are seeing that weakness in the market provide some opportunities to get costs out of the system. And we will continue to work with our partners to look for ways to, hey, we would like to continue to level load activity, but only if it makes sense for our shareholders and at the right returns. We are encouraged by what we see in both basins. The other uncertainty out there, obviously, is tariffs. We are in the 90-day hold period, but a lot of uncertainty on the back end of this, what that does to overall cost structure.

我們看到，市場疲軟為擺脫系統成本提供了一些機會。我們將繼續與我們的合作夥伴一起尋找方法，嘿，我們希望繼續平衡負荷活動，但前提是這對我們的股東有意義並且能帶來正確的回報。我們對這兩個盆地的觀察感到鼓舞。顯然，另一個不確定因素是關稅。我們正處於 90 天的持有期，但後期仍存在許多不確定性，這對整體成本結構有何影響。

We are watching that very closely. What we see here today, Leo, is that the opportunity to negotiate more attractive and more aggressive costs from our vendors is going to outweigh any type of pressure that we see on the tariffs. We are encouraged, but also, given the volatility on both sides with oil price, this is a pretty dynamic situation that we will manage very closely and make decisions real time.

我們正在密切關注此事。利奧，我們今天在這裡看到的是，與我們的供應商談判更具吸引力和更積極的成本的機會將超過我們在關稅方面看到的任何壓力。我們感到鼓舞，但同時，考慮到油價的波動性，這是一個相當動態的情況，我們將密切關注並即時做出決策。

Okay. Thank you.

好的。謝謝。

That concludes our Q&A session. I will now turn the conference back over to Brad for the closing remarks.

我們的問答環節到此結束。現在我將會議交還給布萊德，請他致閉幕詞。

Sure. Thanks, Rochelle. Appreciate everybody joining us today. We look forward to seeing you on the conference circuit here in the coming weeks. Please be safe, and happy Mother's Day to all the moms out there and those at Civitas.

當然。謝謝，羅謝爾。感謝今天與我們一起的各位。我們期待在未來幾週的會議巡迴中見到您。請注意安全，並祝福所有媽媽和 Civitas 的媽媽們母親節快樂。

Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。