Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: 7.59%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.61
• Revenue Growth: -6.52%
• EPS Growth: -32.26%
• Country: US
• Employees: 655
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.93
• Shares Outstanding: 85,303,180
• 10 Day Avg. Volume: 2,382,523
• 30 Day Avg. Volume: 2,228,691
• PEG Ratio: -0.81
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 5.08
• Enterprise Value/Market Cap: 3.37
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 2.45
• 1Y Price Target: $34.70
• Price Target Upside: 20.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $30.00 ▲(4.46% Upside)

Civitas Resources' strong valuation and strategic initiatives from the earnings call are significant positives, offsetting concerns about technical weakness and financial leverage. Leadership changes and market performance challenges are notable risks.

Positive Factors

Operational Efficiency

Civitas's focus on operational efficiencies, reducing well costs by up to 7%, strengthens its competitive edge and profitability.

Cash Flow Management

Robust cash flow growth enhances financial stability and provides capital for reinvestment, supporting long-term strategic initiatives.

Capital Return Program

The substantial buyback program signals confidence in future performance and enhances shareholder value through capital returns.

Negative Factors

Leadership Changes

Leadership transitions can create strategic uncertainty, potentially impacting execution and long-term strategic consistency.

Revenue Decline

Declining revenue growth may indicate market or operational challenges, impacting long-term growth prospects and financial performance.

Increased Leverage

Higher leverage can constrain financial flexibility, increasing risk and potentially affecting future investment and growth opportunities.

Civitas Resources Business Overview & Revenue Model

Company Description

Civitas Resources, Inc., an exploration and production company, focuses on the acquisition, development, and production of oil and natural gas in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg Basin of Colorado. As of December 31,2021, it had proved reserves 397.7 MMBoe comprising 143.6 MMbbls of crude oil, 106.0 MMbbls of natural gas liquids, and 888.5 Bcf of natural gas. The company was formerly known as Bonanza Creek Energy, Inc. Civitas Resources, Inc. was founded in 1999 and is based in Denver, Colorado.

How the Company Makes Money

Civitas Resources generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids extracted from its production sites. The company employs a revenue model that includes selling its products directly to refiners, marketers, and other end-users in the energy market. Key revenue streams consist of the sales of oil and gas at prevailing market prices, which can be influenced by factors such as global oil prices, demand fluctuations, and regional supply dynamics. Additionally, Civitas may enter into long-term contracts or spot market transactions to optimize pricing. The company also benefits from operational efficiencies and technological advancements that reduce extraction costs and enhance production rates. Strategic partnerships with midstream companies for transportation and processing services further bolster its earnings by ensuring that produced resources are delivered to market effectively. Overall, Civitas's financial performance is closely tied to commodity price trends and operational excellence in its drilling and production activities.

Civitas Resources Financial Statement Overview

Summary

Civitas Resources maintains a solid financial position with strong profitability and cash flow metrics. However, concerns about revenue decline and increased leverage present potential risks.

Income Statement

Civitas Resources shows strong gross and EBITDA margins, indicating efficient operations and cost management. However, the recent revenue decline of 2.15% in TTM suggests potential challenges in maintaining growth. The net profit margin is healthy, but lower than previous periods, reflecting some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose risks if not managed carefully. Return on equity has decreased compared to previous years, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Civitas Resources demonstrates strong cash flow management with a significant increase in free cash flow growth of 78.71% in TTM. The operating cash flow to net income ratio is robust, indicating effective conversion of earnings into cash. However, the free cash flow to net income ratio has decreased, suggesting potential reinvestment or cost pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.71B	5.20B	3.47B	3.79B	930.61M	218.09M
Gross Profit	2.06B	2.14B	1.67B	2.48B	569.36M	160.47M
EBITDA	3.26B	3.60B	2.34B	2.50B	488.41M	177.58M
Net Income	638.11M	838.72M	784.29M	1.25B	178.92M	103.53M
Balance Sheet
Total Assets	15.11B	14.94B	14.10B	7.97B	6.74B	1.18B
Cash, Cash Equivalents and Short-Term Investments	56.00M	75.83M	1.12B	768.03M	254.45M	24.74M
Total Debt	5.14B	4.49B	4.96B	436.19M	551.06M	31.82M
Total Liabilities	8.43B	8.32B	7.92B	2.60B	2.09B	137.56M
Stockholders Equity	6.68B	6.63B	6.18B	5.37B	4.65B	1.05B
Cash Flow
Free Cash Flow	933.65M	893.36M	731.52M	1.41B	123.10M	95.00M
Operating Cash Flow	2.74B	2.87B	2.24B	2.48B	274.60M	158.80M
Investing Cash Flow	-2.33B	-2.67B	-5.24B	-1.31B	73.55M	-63.80M
Financing Cash Flow	-396.62M	-1.24B	3.36B	-657.37M	-118.44M	-81.25M

Civitas Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIVI, the sentiment is Neutral. The current price of 28.72 is above the 20-day moving average (MA) of 28.07, below the 50-day MA of 30.25, and below the 200-day MA of 31.47, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CIVI.

Civitas Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SM	72 Outperform	$2.11B	2.91	16.58%	4.19%	34.93%	-11.85%
CRC	72 Outperform	$4.09B	11.35	11.06%	3.32%	33.85%	-34.08%
CIVI	71 Outperform	$2.36B	4.03	9.56%	7.59%	-6.52%	-32.26%
CRGY	71 Outperform	$2.26B	―	0.64%	5.06%	32.31%	-122.30%
MUR	68 Neutral	$4.35B	31.05	2.76%	4.28%	-13.92%	-68.34%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOG	65 Neutral	$2.18B	12.59	7.95%	8.64%	1.51%	-78.38%

Civitas Resources Corporate Events

Civitas Resources Reports Strong Q3 2025 Results

Civitas Resources, Inc. is an independent exploration and production company specializing in crude oil and natural gas, with operations primarily in the Permian Basin and DJ Basin. The company is committed to maximizing shareholder returns through strategic initiatives focused on cash flow generation, balance sheet strength, capital returns, and ESG leadership.

Civitas Resources Merges with SM Energy

On November 2, 2025, Civitas Resources, Inc. and SM Energy Company entered into a merger agreement where Civitas will merge into SM Energy, resulting in Civitas becoming a wholly owned subsidiary of SM Energy. This merger will lead to the conversion of Civitas shares into SM Energy shares at a ratio of 1.45:1, and the combined entity will undergo governance restructuring, including changes to the board of directors and committees. The merger is subject to various conditions, including stockholder approvals and regulatory clearances, and is expected to enhance the operational and strategic positioning of the combined company.

The most recent analyst rating on (CIVI) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources and SM Energy Announce Merger Agreement

On November 2, 2025, Civitas Resources, Inc. and SM Energy Company announced a merger agreement, forming a combined entity valued at approximately $12.8 billion. This merger, expected to close in the first quarter of 2026, will create a leading independent oil and gas company with a premier portfolio in U.S. shale basins, enhancing free cash flow and stockholder value. The merger is anticipated to generate significant synergies, improve financial metrics, and maintain sustainable dividends, while advancing commitments to sustainability and environmental stewardship.

The most recent analyst rating on (CIVI) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.