Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: 7.02%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 3.9
• Beta (1Y): 1.63
• 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: 1,410,461
• 30 Day Avg. Volume: 1,585,944
• 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: 3.49
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 2.45
• 1Y Price Target: $35.00
• Price Target Upside: 22.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 6.04
• Revenue Forecast (FY): $4.61B

• Rating: 74 Outperform
• Price Target: $33.00 ▲(15.75% Upside)

Civitas Resources receives a strong overall score driven by attractive valuation and positive corporate events, particularly the merger with SM Energy. While financial performance shows resilience, concerns about revenue decline and increased leverage remain. Technical indicators suggest cautious optimism with short-term bullish momentum.

Positive Factors

Merger with SM Energy

The merger with SM Energy is expected to enhance operations and market position, generating significant synergies and improving financial metrics, which can strengthen long-term competitiveness and shareholder value.

Cash Flow Management

Strong cash flow management indicates effective conversion of earnings into cash, providing financial flexibility for reinvestment and debt management, supporting long-term operational stability.

Operational Efficiency

Efficient operations and cost management, as indicated by strong margins, suggest the company can sustain profitability and competitive positioning despite market fluctuations.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in maintaining growth, which could impact long-term financial performance if not addressed through strategic initiatives.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, especially if revenue growth does not offset the increased debt burden, potentially impacting long-term stability.

Profitability Pressure

Decreased net profit margins indicate pressure on profitability, which could affect the company's ability to reinvest in growth and maintain competitive advantage over time.

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: 28.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 28.51 is below the 20-day moving average (MA) of 28.55, above the 50-day MA of 28.24, and below the 200-day MA of 29.55, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 19.38 is Positive, 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
CRC	77 Outperform	$3.74B	10.38	11.06%	3.45%	33.85%	-34.08%
CIVI	74 Outperform	$2.29B	3.89	9.56%	7.02%	-6.52%	-32.26%
NOG	72 Outperform	$2.12B	12.23	7.95%	7.82%	1.51%	-78.38%
SM	72 Outperform	$2.09B	2.89	16.58%	4.38%	34.93%	-11.85%
CRGY	71 Outperform	$2.71B	―	0.64%	5.65%	32.31%	-122.30%
MUR	68 Neutral	$4.46B	31.83	2.76%	4.03%	-13.92%	-68.34%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Civitas Resources Corporate Events

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.

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.

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.

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.