(World Oil)– Civitas Resources announced two major updates on Aug. 6: the reinstatement of a capital return program and a leadership transition that places Board Chair Wouter van Kempen in the role of interim CEO.
The company’s Board of Directors has approved a renewed capital allocation strategy aimed at balancing shareholder returns and debt reduction. Civitas plans to allocate future free cash flow—after maintaining its $2 per share annual base dividend—equally between share repurchases and debt reduction.
As part of the move, the Board increased the company’s share repurchase authorization to $750 million, equal to roughly 28% of its current market capitalization. The company intends to launch an accelerated share repurchase (ASR) agreement for $250 million, with final settlement expected in Q3 2025.
“Inclusive of paid and planned dividends and repurchases for the year, the company’s capital return to shareholders in 2025 is estimated to be approximately 21% of its current market capitalization,” Civitas said.
Board Chair Howard A. Willard III stated, “We are reinstating an aggressive capital return program to take advantage of the compelling value we see in our equity today. Through the ASR program, we are targeting a rapid repurchase of a significant quantity of the company’s outstanding shares.”
The reinstatement follows several strategic steps Civitas has taken in 2025, including:
A $150 million reduction in its capital expenditure plan;
Hedging 17 million barrels of oil through Q3 2026 (approximately 60% of oil through 2025 at a $67 WTI floor);
Issuance of $750 million in senior notes due 2033 to extend debt maturities and reduce revolver borrowings;
Launching a $100 million cost optimization initiative;
Exceeding its non-core asset divestment goal with $435 million in DJ Basin sales.
These efforts have positioned the company to reduce net debt to $4.5 billion by year-end 2025, consistent with prior targets.
In a separate announcement, Civitas said 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 process to identify a permanent replacement.
Howard A. Willard III, a Board member since 2021, will temporarily assume the role of Chair during the transition.
“The Board believes this is the right time to transition to new leadership,” Willard said. “Wouter’s extensive experience as an industry executive and service as Chair of the Board make him ideally qualified to assume the role of Interim CEO.”
Van Kempen added, “Every day, we navigate a fiercely competitive market for a limited pool of investor capital. I am committed to continue transforming Civitas into a world-class energy company by strengthening our performance-driven culture, executing with relentless discipline, and driving industry-leading cost efficiency, in order to maximize value for our shareholders.”
