Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $2.28B
• Dividend Yield: 7.36%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 3.9
• Beta (1Y): 1.62
• 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: 85,313,360
• 10 Day Avg. Volume: 742,748
• 30 Day Avg. Volume: 1,156,341
• 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: 3.50
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 2.45
• 1Y Price Target: $35.00
• Price Target Upside: 36.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $30.00 ▲(17.28% Upside)

Civitas Resources scores well due to its strong valuation and positive corporate events, particularly the merger with SM Energy. Financial performance is solid but faces challenges with revenue decline and increased leverage. Technical analysis indicates bearish momentum, which slightly offsets the overall positive outlook.

Positive Factors

Merger with SM Energy

The merger with SM Energy, cleared of antitrust concerns, enhances Civitas's market position and operational footprint, promising substantial synergies and competitive advantages in the U.S. oil and gas market.

Operational Efficiency

Strong gross and EBITDA margins reflect Civitas's efficient operations and cost management, which are crucial for maintaining profitability and competitive advantage in a volatile industry.

Cash Flow Management

Robust cash flow management and significant free cash flow growth enhance Civitas's ability to reinvest in growth opportunities and maintain financial stability, supporting long-term strategic initiatives.

Negative Factors

Revenue Decline

A decline in revenue growth poses challenges for Civitas's ability to sustain its market position and expand operations, potentially impacting future profitability and strategic initiatives.

Increased Leverage

Increased leverage can strain Civitas's financial flexibility, raising risks related to debt servicing and limiting its ability to capitalize on new opportunities without incurring additional costs.

Profit Margin Pressure

Pressure on net profit margins suggests challenges in maintaining profitability levels, which could affect Civitas's ability to generate shareholder value and invest in future growth.

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. While there are concerns about revenue decline and increased leverage, the company shows resilience in its operations. Continued focus on managing debt and sustaining revenue growth will be crucial for future stability and growth.

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: Negative
• Last Price: 25.58
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 25.58 is below the 20-day moving average (MA) of 27.59, below the 50-day MA of 27.79, and below the 200-day MA of 29.22, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 21.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CIVI.

Civitas Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIVI	73 Outperform	$2.28B	3.88	9.56%	7.36%	-6.52%	-32.26%
NOG	72 Outperform	$2.05B	11.86	7.95%	8.18%	1.51%	-78.38%
CRC	71 Outperform	$4.14B	10.79	11.06%	3.56%	33.85%	-34.08%
MUR	67 Neutral	$4.36B	31.13	2.76%	4.15%	-13.92%	-68.34%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SM	―	$2.10B	2.89	16.58%	4.38%	34.93%	-11.85%
CRGY	66 Neutral	$2.64B	-52.72	0.64%	5.78%	32.31%	-122.30%

Civitas Resources Corporate Events

Civitas Resources Gains Antitrust Clearance for SM Energy Merger

On December 18, 2025, Civitas Resources, Inc. received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for its pending merger with SM Energy Company, satisfying a key regulatory condition required for closing the transaction. The clearance marks a significant step toward completion of the deal, reducing antitrust uncertainty around the combination and potentially accelerating Civitas’s efforts to grow its operational footprint and competitive position in the U.S. oil and gas market.

The most recent analyst rating on (CIVI) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Approves New Executive Severance Plan

On December 1, 2025, Civitas Resources‘ Board of Directors approved a new Executive Change in Control and Severance Plan, contingent on the completion of a merger with SM Energy Company. This amended plan introduces changes such as a 30-month change in control protection period for certain executives and revised severance calculations, impacting the company’s executive compensation structure.

The most recent analyst rating on (CIVI) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

Civitas Resources Announces Merger Details with SM Energy

On November 17, 2025, Civitas Resources and SM Energy announced additional details about their planned merger, which is expected to enhance their operations and market position. The merger aims to generate annual synergies of $200 million to $300 million, with a net present value of $1.0 billion to $1.5 billion, representing 22% to 32% of the pro-forma market cap. The merger will also result in a leadership team with significant industry experience and a board of directors comprising members from both companies. The companies plan to divest over $1 billion within the first year post-merger to strengthen their balance sheet and accelerate stockholder returns. The merger has received positive responses from rating agencies, reflecting confidence in the post-merger outlook.

The most recent analyst rating on (CIVI) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

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.