Business description of Civitas-Resources-Inc from last 10-k form


 Information Regarding Forward-Looking Statements

        This Annual Report on Form 10-K contains various statements, including those that express belief, expectation or intention, as well as those that are not statements of historic fact, that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this Annual Report on Form 10-K, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

        Forward-looking statements include statements related to, among other things:

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    reserves estimates;

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    estimated production for 2013;

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    amount and allocation of forecasted capital expenditures and plans for funding capital expenditures and operating expenses;

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    ability to modify future capital expenditures;

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    the Wattenberg Field being the most prospective area of the Niobrara formation;

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    compliance with debt covenants;

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    ability to satisfy obligations related to ongoing operations;

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    compliance with government regulations;

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    impact from the lack of available gathering systems and processing facilities;

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    natural gas, oil and NGL prices and factors affecting the volatility of such prices;

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    impact of lower commodity prices;

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    the ability to use derivative instruments to manage commodity price risk;

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    plans to drill or participate in wells;

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    loss of any purchaser of the our products;

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    our estimated revenues and losses;

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    the timing and success of specific projects;

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    outcomes and effects of litigation, claims and disputes;

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    our business strategy;

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    our ability to replace oil and natural gas reserves;

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    impact of recently issued accounting pronouncements;

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    our financial position;

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    our cash flow and liquidity; and

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    other statements concerning our operations, economic performance and financial condition.

        We have based these forward-looking statements on certain assumptions and analyses we have made in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate under the circumstances. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining actual future results. The actual

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results or developments anticipated by these forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, and may not be realized or, even if substantially realized, may not have the expected consequences. Actual results could differ materially from those expressed or implied in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the following:

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    the risk factors discussed in Part I, Item 1A of this Annual Report on Form 10-K;

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    declines or volatility in the prices we receive for our oil, liquids and natural gas;

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    general economic conditions, whether internationally, nationally or in the regional and local market areas in which we do business;

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    the continuing global economic slowdown that has and may continue to adversely affect consumption of oil and natural gas by businesses and consumers;

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    ability of our customers to meet their obligations to us;

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    our ability to generate sufficient cash flow from operations, borrowings or other sources to enable us to fully develop our undeveloped acreage positions;

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    the presence or recoverability of estimated oil and natural gas reserves and the actual future production rates and associated costs;

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    uncertainties associated with estimates of proved oil and gas reserves and, in particular, probable and possible resources;

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    the possibility that the industry may be subject to future regulatory or legislative actions (including additional taxes and changes in environmental regulation);

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    environmental risks;

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    seasonal weather conditions and lease stipulations;

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    drilling and operating risks, including the risks associated with the employment of horizontal drilling techniques;

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    ability to acquire adequate supplies of water for drilling operations;

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    availability of oilfield equipment, services and personnel;

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    exploration and development risks;

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    competition in the oil and natural gas industry;

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    management's ability to execute our plans to meet our goals;

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    risks related to our derivative instruments;

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    our ability to retain key members of our senior management and key technical employees;

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    ability to maintain effective internal controls;

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    access to adequate gathering systems and pipeline take-away capacity to execute our drilling program;

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    our ability to secure firm transportation for oil and natural gas we produce and to sell the oil and natural gas at market prices;

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    costs and other risks associated with perfecting title for mineral rights in some of our properties;

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    continued hostilities in the Middle East and other sustained military campaigns or acts of terrorism or sabotage; and

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    other economic, competitive, governmental, legislative, regulatory, geopolitical and technological factors that may negatively impact our businesses, operations or pricing.

        All forward-looking statements speak only as of the date of this Annual Report on Form 10-K. We disclaim any obligation to update or revise these statements unless required by law, and you should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this Annual Report on Form 10-K are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. We disclose important factors that could cause our actual results to differ materially from our expectations under "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Annual Report on Form 10-K. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

GLOSSARY OF OIL AND NATURAL GAS TERMS

        We have included below the definitions for certain terms used in this Annual Report on Form 10-K:

        "3-D seismic data" Geophysical data that depict the subsurface strata in three dimensions. 3-D seismic data typically provide a more detailed and accurate interpretation of the subsurface strata than 2-D, or two-dimensional, seismic data.

        "Analogous reservoir" Analogous reservoirs, as used in resources assessments, have similar rock and fluid properties, reservoir conditions (depth, temperature, and pressure) and drive mechanisms, but are typically at a more advanced stage of development than the reservoir of interest and thus may provide concepts to assist in the interpretation of more limited data and estimation of recovery. When used to support proved reserves, an "analogous reservoir" refers to a reservoir that shares the following characteristics with the reservoir of interest:

    (i)
    Same geological formation (but not necessarily in pressure communication with the reservoir of interest);

    (ii)
    Same environment of deposition;

    (iii)
    Similar geological structure; and

    (iv)
    Same drive mechanism.

        "Bbl" One barrel, or 42 U.S. gallons liquid volume, used herein in reference to crude oil, condensate or natural gas liquids.

        "Bcf" One billion cubic feet of natural gas.

        "Boe" One stock tank barrel of oil equivalent, calculated by converting natural gas volumes to equivalent oil barrels at a ratio of six Mcf to one Bbl of oil.

        "British thermal unit" or "BTU" The heat required to raise the temperature of a one-pound mass of water from 58.5 to 59.5 degrees Fahrenheit.