In a market where many operators are repositioning around natural gas and LNG-linked demand, Civitas Resources, Inc. is taking a notably different path. An analysis of Civitas’ 2025 wells drilled shows a drilling program that is deliberately and structurally oil-centric, with capital focused almost entirely on oil-weighted basins, counties, and fields.
This positioning aligns closely with the company’s stated priorities around free cash flow generation, cost discipline, and balance sheet strength.
Drilling Concentration by County: Oil-Weighted by Design
Using county-level drilling as a proxy for basin exposure, Civitas’ 2025 activity is concentrated in two core regions:
- DJ Basin (Colorado) — primarily Weld, Adams, and Arapahoe counties
- Permian Basin (Texas & New Mexico) — led by Midland and Delaware sub-basins
Weld County, Colorado stands out as the single largest contributor, reflecting Civitas’ deep exposure to the Wattenberg field. In the Permian, drilling is concentrated across Upton, Reagan, Glasscock, Martin, Loving, Reeves, Lea, and Eddy counties—areas firmly associated with oil-dominant production.
Notably absent from the dataset are counties associated with major dry-gas or LNG-levered plays such as the Haynesville, Marcellus, or Utica. This absence is not incidental; it reinforces that Civitas’ 2025 capital program is not positioned to capture LNG-driven gas upside.
Field-Level Activity Reinforces the Oil Bias
Grouping the 2025 wells by field makes the oil-centric strategy even clearer.
The majority of drilling targets classic oil-weighted formations, including:
- Spraberry (Trend Area) — the single largest field by well count
- Wattenberg / Niobrara — core DJ Basin oil development
- Wolfcamp and Bone Spring — Delaware Basin oil targets
- Phantom and Sandbar fields — liquids-rich Permian development
These fields are known for high oil cuts, repeatable development inventory, and strong economics under disciplined capital programs. There is no meaningful exposure to dry gas fields or formations typically associated with LNG-linked demand growth.
Why Civitas Is Structurally Oil-Centric
Civitas’ 2025 drilling profile highlights four key strategic realities:
1. Basin Selection
The DJ Basin and Permian Basin remain two of the most oil-weighted shale provinces in North America. Civitas’ exclusive focus on these basins limits exposure to gas price volatility and LNG market cycles.
2. Formation Choice
Spraberry, Wolfcamp, Bone Spring, and Niobrara formations are optimized for oil recovery and capital efficiency. These targets favor faster payback periods and predictable cash flow.
3. Capital Discipline and Free Cash Flow
Oil-weighted drilling supports Civitas’ broader corporate strategy centered on free cash flow generation, debt reduction, and shareholder returns rather than growth-for-growth’s-sake.
4. LNG Is Not a Portfolio Driver
While LNG exports are reshaping gas-focused basins, Civitas’ asset base does not intersect LNG infrastructure or export economics in a material way. As a result, the company remains largely insulated from LNG-driven market dynamics.
Bottom Line
Civitas Resources’ 2025 drilling program is not simply leaning oil-heavy—it is fundamentally oil-centric. From county-level basin exposure to field-level targeting, the data shows a company prioritizing oil-rich inventory, capital efficiency, and free cash flow resilience over LNG-linked optionality.
