Civitas Slips as It Spends $4.7 Billion to Enter Permian (1)

(Adds share move, analyst comments.)

Civitas Resources slipped 1.2% premarket after the energy company agreed to buy oil producing assets in the Midland and Delaware Basins of west Texas and New Mexico from Hibernia and Tap Rock for $4.7 billion.

• To buy part of Tap Rock’s Delaware Basin assets for $2.45 billion
• To buy Hibernia’s Midland Basin assets for $2.25 billion
• Civitas to fund deal by: issue $2.7 billion of unsecured senior debt, ~13.5 million shares valued at $950 million, ~$600 million from credit facility, ~$400 million of cash-on-hand
  • Bank of America and JPMorgan are also providing Civitas with $3.5 ...