Despite inflationary pressures, Denver-based Civitas Resources Inc. and PDC Energy Inc. expect continued strong oil and natural gas production levels through 2022 as each capitalizes on acquisitions and strong demand.

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Civitas Resources Inc., the largest producer in the Denver-Julesburg (DJ) Basin, on average produced 175,223 boe/d — 46% oil, 30% natural gas and 24% natural gas liquids (NGL) in 2Q2022 — up four-fold year/year.  

“We beat our internal total production targets and came in under” the company’s capital expenditure (capex) estimate, “and that’s in the face of continuing inflationary pressure,” Civitas CEO Christopher Doyle said on the second-quarter earnings call earlier this month.

“We are seeing the benefits of 18 months of large-scale DJ...