(WO) — Civitas Assets introduced two main updates on Aug. 6: the reinstatement of a capital return program and a management transition that locations Board Chair Wouter van Kempen within the function of interim CEO.
The corporate’s Board of Administrators has authorised a renewed capital allocation technique geared toward balancing shareholder returns and debt discount. Civitas plans to allocate future free money circulate—after sustaining its $2 per share annual base dividend—equally between share repurchases and debt discount.
As a part of the transfer, the Board elevated the corporate’s share repurchase authorization to $750 million, equal to roughly 28% of its present market capitalization. The corporate intends to launch an accelerated share repurchase (ASR) settlement for $250 million, with remaining settlement anticipated in Q3 2025.
“Inclusive of paid and deliberate dividends and repurchases for the yr, the corporate’s capital return to shareholders in 2025 is estimated to be roughly 21% of its present market capitalization,” Civitas mentioned.
Board Chair Howard A. Willard III said, “We’re reinstating an aggressive capital return program to make the most of the compelling worth we see in our fairness right this moment. By way of the ASR program, we’re concentrating on a fast repurchase of a major amount of the corporate’s excellent shares.”
The reinstatement follows a number of strategic steps Civitas has taken in 2025, together with:
A $150 million discount in its capital expenditure plan;
Hedging 17 million barrels of oil by means of Q3 2026 (roughly 60% of oil by means of 2025 at a $67 WTI ground);
Issuance of $750 million in senior notes due 2033 to increase debt maturities and scale back revolver borrowings;
Launching a $100 million price optimization initiative;
Exceeding its non-core asset divestment aim with $435 million in DJ Basin gross sales.
These efforts have positioned the corporate to cut back internet debt to $4.5 billion by year-end 2025, per prior targets.
In a separate announcement, Civitas mentioned that Wouter van Kempen, Chair of the Board since February 2023, has been named interim CEO following the departure of Chris Doyle. The Board has begun its succession course of to establish a everlasting substitute.
Howard A. Willard III, a Board member since 2021, will briefly assume the function of Chair throughout the transition.
“The Board believes that is the fitting time to transition to new management,” Willard mentioned. “Wouter’s in depth expertise as an {industry} government and repair as Chair of the Board make him ideally certified to imagine the function of Interim CEO.”
Van Kempen added, “Daily, we navigate a fiercely aggressive marketplace for a restricted pool of investor capital. I’m dedicated to proceed remodeling Civitas right into a world-class vitality firm by strengthening our performance-driven tradition, executing with relentless self-discipline, and driving industry-leading price effectivity, with a purpose to maximize worth for our shareholders.”
