Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $3.09B
• Dividend Yield: 6.07%
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): 4.2
• Beta (1Y): 1.41
• Revenue Growth: 0.24%
• EPS Growth: -9.19%
• Country: US
• Employees: 655
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.99
• Shares Outstanding: 92,660,010
• 10 Day Avg. Volume: 2,695,344
• 30 Day Avg. Volume: 2,881,283
• 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: 2.55
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: $41.55
• Price Target Upside: 26.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $35.00 ▲(6.25% Upside)

Civitas Resources scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. The earnings call provided positive insights into operational efficiency and capital return strategies, although leadership changes and market challenges present some risks. Technical indicators suggest potential short-term weakness, but the overall outlook remains positive.

Positive Factors

Operational Efficiency

Efficiency improvements in drilling and completion reduce operational costs, enhancing profitability and competitiveness in the long term.

Capital Return Strategy

The aggressive capital return strategy, including significant share buybacks, demonstrates a commitment to shareholder value and financial strength.

Asset Divestitures

Successful asset divestitures improve focus on core operations and enhance financial flexibility, supporting long-term strategic goals.

Negative Factors

Leadership Changes

Leadership transitions can create uncertainty and may disrupt strategic continuity, impacting long-term execution and investor confidence.

Rising Debt Levels

Increasing debt levels could strain financial resources and limit flexibility, posing risks to long-term financial health and growth capacity.

Negative Revenue Growth

Declining revenue growth suggests difficulties in market expansion and product demand, potentially impacting future profitability and market position.

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 exploration, drilling, and production of oil and natural gas. The company monetizes its output by selling crude oil, natural gas, and natural gas liquids to various markets, including refineries and distribution networks. Key revenue streams include the sale of produced hydrocarbons, which can be influenced by fluctuations in commodity prices. Additionally, Civitas may engage in hedging activities to stabilize cash flows against market volatility. Strategic partnerships with midstream companies ensure efficient transportation and processing of its products, further enhancing profitability. The company's focus on operational efficiency, cost management, and the integration of technology in its operations play a significant role in its revenue generation.

Civitas Resources Financial Statement Overview

Summary

Civitas Resources demonstrates strong profitability and a stable financial position, with efficient operations reflected in solid margins. However, recent declines in revenue growth and free cash flow growth highlight potential challenges. The company should focus on managing rising debt levels and improving cash flow generation to sustain long-term growth.

Income Statement

Civitas Resources shows strong profitability with a consistent gross profit margin around 40-45% and a net profit margin of approximately 15-22% over the years. However, recent revenue growth has been negative, indicating potential challenges in maintaining top-line growth. Despite this, the company maintains solid EBIT and EBITDA margins, reflecting efficient operations.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, although it has increased recently. Return on equity is healthy, indicating effective use of equity to generate profits. The equity ratio suggests a strong equity base relative to total assets, but the rising debt levels could pose future risks.

Cash Flow

Cash flow analysis shows a mixed picture. While operating cash flow remains robust, free cash flow growth has been negative recently, which could impact future investments. The operating cash flow to net income ratio is strong, indicating good cash conversion, but the free cash flow to net income ratio suggests room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.81B	5.20B	3.48B	3.79B	930.61M	218.09M
Gross Profit	2.45B	2.14B	1.39B	2.18B	504.25M	69.22M
EBITDA	3.45B	3.60B	2.34B	2.52B	589.30M	173.61M
Net Income	756.91M	838.72M	784.29M	1.25B	178.92M	103.53M
Balance Sheet
Total Assets	15.40B	14.94B	14.10B	7.97B	6.74B	1.18B
Cash, Cash Equivalents and Short-Term Investments	69.00M	75.83M	1.12B	768.03M	254.45M	24.74M
Total Debt	5.39B	4.49B	4.96B	418.08M	531.98M	30.02M
Total Liabilities	8.61B	8.32B	7.92B	2.60B	2.09B	137.56M
Stockholders Equity	6.79B	6.63B	6.18B	5.37B	4.65B	1.05B
Cash Flow
Free Cash Flow	1.35B	893.36M	729.63M	1.13B	121.85M	95.00M
Operating Cash Flow	2.71B	2.87B	2.24B	2.48B	274.60M	158.80M
Investing Cash Flow	-2.60B	-2.67B	-5.24B	-1.31B	73.55M	-63.80M
Financing Cash Flow	-129.87M	-1.24B	3.36B	-657.37M	-118.44M	-81.25M

Civitas Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.94
• 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 32.94 is below the 20-day moving average (MA) of 33.43, above the 50-day MA of 32.00, and below the 200-day MA of 34.75, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 60.81 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
CRC	82 Outperform	4.70B	7.66	19.52%	2.76%	58.35%	210.80%
NOG	76 Outperform	2.63B	4.44	25.23%	6.46%	2.98%	7.94%
CIVI	72 Outperform	$3.09B	4.20	11.31%	6.07%	0.24%	-9.19%
SM	72 Outperform	3.14B	3.87	―	2.93%	28.20%	1.63%
MUR	71 Outperform	4.14B	15.04	5.48%	4.37%	-18.08%	-49.36%
CRGY	67 Neutral	2.44B	-53.33	0.81%	5.07%	32.84%	-755.17%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%