Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $2.87B
• Dividend Yield: 14.6%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 3.5
• Beta (1Y): 1.32
• Revenue Growth: 22.14%
• EPS Growth: 5.69%
• Country: US
• Employees: 655
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.77
• Shares Outstanding: 92,579,895
• 10 Day Avg. Volume: 1,629,198
• 30 Day Avg. Volume: 2,284,001
• PEG Ratio: 1.12
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.93
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 0.19
• 1Y Price Target: $42.67
• Price Target Upside: 37.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $35.00 ▲(13.05%Upside)

Civitas Resources is well-positioned with strong financial performance and attractive valuation metrics. While technical analysis and earnings call insights indicate moderate potential with some operational challenges, recent strategic corporate events bolster the company's growth prospects and financial stability.

Positive Factors

Asset Portfolio

Civitas Resources acquired approximately 19,000 net acres in Midland, adding significant production potential and enhancing its asset portfolio.

Leadership

The appointment of Billy Helms to the Board introduces a well-respected industry veteran, which is seen as a positive move for the company's leadership.

Valuation

Civitas Resources shares are valued at $72, trading at a notable discount to peers, which could present an attractive investment opportunity.

Negative Factors

Debt and Leverage

Increased leverage and lower oil prices have made delevering and repurchasing stock challenging.

Financial Performance

CIVI reported disappointing results which missed expectations across nearly all key metrics.

Guidance and Production

The company set its guidance below prior estimates and Consensus for both oil production and total production, while capex guidance was above estimates.

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 oil, natural gas, and natural gas liquids that it extracts from its properties. The company's revenue model is heavily dependent on the production volumes and market prices of these commodities. Key revenue streams include the direct sale of produced hydrocarbons to refiners, marketers, and other purchasers in the energy market. Additionally, Civitas may enter into joint ventures or partnerships to enhance production capabilities or access new technologies, further impacting its revenue. The company's financial performance is also influenced by factors such as production efficiency, operational costs, and regulatory compliance. Market conditions, including supply and demand dynamics, geopolitical events, and environmental regulations, play a significant role in shaping the company's earnings.

Civitas Resources Financial Statement Overview

Summary

Civitas Resources exhibits strong financial health, with impressive revenue and cash flow growth, and a solid balance sheet characterized by low leverage. While profitability margins indicate effective cost management, some operational challenges are noted in EBIT margins.

Income Statement

Civitas Resources has shown robust revenue growth, with a significant increase from $930.61 million in 2021 to $5.21 billion in 2024, marking a strong upward trajectory. The gross profit margin is exceptionally high at 99.40% for 2024, indicating efficient cost management. Net profit margin improved to 16.11% in 2024 from 8.40% in 2021, demonstrating enhanced profitability. However, the EBIT margin dropped significantly to 0.08% in 2024, reflecting potential operational challenges.

Balance Sheet

The company maintains a strong equity base with a 44.35% equity ratio in 2024, highlighting financial stability. The debt-to-equity ratio has improved, moving to 0.00 in 2024 from 0.86 in 2020, indicating a reduction in leverage and a stronger balance sheet. Return on equity has decreased slightly to 12.65% in 2024 from 13.63% in 2022, impacted by lower net income relative to equity growth.

Cash Flow

Civitas Resources has demonstrated significant growth in free cash flow, increasing from $121.85 million in 2021 to $2.87 billion in 2024, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is robust at 3.42 in 2024, indicating efficient conversion of earnings to cash. Free cash flow to net income ratio is high at 3.42, emphasizing strong cash flow relative to profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.20B	3.48B	3.79B	930.61M	218.09M
Gross Profit	2.14B	1.39B	2.18B	504.25M	69.22M
EBITDA	3.60B	2.34B	2.52B	589.30M	173.61M
Net Income	838.72M	784.29M	1.25B	178.92M	103.53M
Balance Sheet
Total Assets	14.94B	14.10B	7.97B	6.74B	1.18B
Cash, Cash Equivalents and Short-Term Investments	75.83M	1.12B	768.03M	254.45M	24.74M
Total Debt	4.49B	4.96B	418.08M	531.98M	30.02M
Total Liabilities	8.32B	7.92B	2.60B	2.09B	137.56M
Stockholders Equity	6.63B	6.18B	5.37B	4.65B	1.05B
Cash Flow
Free Cash Flow	893.36M	729.63M	1.13B	121.85M	95.00M
Operating Cash Flow	2.87B	2.24B	2.48B	274.60M	158.80M
Investing Cash Flow	-2.67B	-5.24B	-1.31B	73.55M	-63.80M
Financing Cash Flow	-1.24B	3.36B	-657.37M	-118.44M	-81.25M

Civitas Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIVI, the sentiment is Positive. The current price of 30.96 is above the 20-day moving average (MA) of 29.60, above the 50-day MA of 29.48, and below the 200-day MA of 38.98, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 45.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIVI.

Civitas Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIVI	78 Outperform	$2.87B	3.55	12.73%	14.60%	22.14%	5.69%
NOG	76 Outperform	$2.77B	4.37	29.41%	7.62%	9.73%	5.01%
MUR	75 Outperform	$3.61B	9.71	7.54%	5.94%	-14.90%	-27.53%
CRC	75 Outperform	$4.37B	8.88	17.86%	3.14%	41.68%	53.13%
SM	72 Outperform	$3.05B	3.74	20.28%	2.92%	26.04%	11.96%
CRGY	60 Neutral	$2.75B	23.27	-3.54%	5.38%	31.58%	-114.70%
Sector *	57 Neutral	HK$89.26B	4.03	-2.25%	3.05%	-4.44%	-41.07%

Civitas Resources Corporate Events

Civitas Resources Holds 2025 Annual Stockholders Meeting

On June 4, 2025, Civitas Resources, Inc. held its 2025 Annual Meeting of Stockholders, where approximately 87% of eligible shares were voted. During the meeting, stockholders elected each director nominee for a one-year term, ratified Deloitte & Touche LLP as the independent accountant for 2025, and approved the compensation of the company’s named executive officers.

The most recent analyst rating on (CIVI) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Completes $750 Million Senior Notes Offering

On June 3, 2025, Civitas Resources, Inc. completed its offering of $750 million in 9.625% Senior Notes due 2033. The proceeds are intended to repay part of the company’s credit facility borrowings. The notes, guaranteed by the company’s subsidiaries, include provisions for optional redemption and change of control, and are subject to covenants and events of default. This strategic financial move aims to enhance Civitas Resources’ financial flexibility and strengthen its market position.

The most recent analyst rating on (CIVI) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Announces $750M Senior Notes Offering

On May 29, 2025, Civitas Resources announced the pricing of an upsized private placement of $750 million in new 9.625% senior unsecured notes due 2033. The offering, expected to close on June 3, 2025, will help repay part of the company’s revolving credit facility, potentially strengthening its financial position and operational flexibility.

The most recent analyst rating on (CIVI) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Updates Credit Agreement Terms

On May 28, 2025, Civitas Resources, Inc. announced an Eighth Amendment to its Amended and Restated Credit Agreement, which includes a reduction of the Borrowing Base from $3.4 billion to $3.3 billion, while maintaining the elected loan limit at $2.5 billion. The amendment also modifies the maturity terms of the revolving credit facility, potentially impacting the company’s financial strategy and flexibility.

The most recent analyst rating on (CIVI) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Announces $500M Senior Notes Offering

On May 29, 2025, Civitas Resources announced its intention to offer $500 million in senior unsecured notes due 2032 in a private placement, subject to market conditions. The proceeds from this offering are expected to be used to repay a portion of the company’s outstanding borrowings under its revolving credit facility, which could impact its financial strategy and operations.

The most recent analyst rating on (CIVI) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Appoints New President and COO

On May 7, 2025, Civitas Resources appointed Clayton A. Carrell as President and Chief Operating Officer, effective immediately. Carrell brings over 35 years of experience in the oil and gas industry, having previously held leadership roles at Southwestern Energy and EP Energy. His appointment is expected to enhance Civitas’ operational capabilities and strategic execution, particularly in the Permian and DJ Basins, as the company focuses on delivering value for shareholders through its scaled development programs.