Civitas Resources Expands into Permian Basin with $5B Investment
Civitas Resources has signed two deals worth nearly $5 billion with affiliates of Hibernia Energy and Tap Rock Resources to expand its operations into the Permian Basin, the country's leading shale-oil play. The acquisition will boost Civitas' production by 60% and provide nearly a decade of high-return drilling inventory. The deals are expected to close in the third quarter and will be financed by unsecured senior debt, common stock, borrowings, and cash-on-hand. The acquisition was criticized by a Canadian organization for pension funds and climate change, noting that Civitas' plan to increase production runs counter to achieving net-zero greenhouse-gas emissions by 2050.
