Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: 8.7%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.43
• Revenue Growth: 0.24%
• EPS Growth: -9.19%
• Country: US
• Employees: 655
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.99
• Shares Outstanding: 92,660,010
• 10 Day Avg. Volume: 2,792,474
• 30 Day Avg. Volume: 2,567,437
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: $42.18
• Price Target Upside: 21.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $42.00 ▲(21.00% Upside)

Civitas Resources' overall stock score reflects a combination of strong valuation metrics and strategic financial decisions, which are slightly offset by technical indicators suggesting potential near-term volatility and challenges in revenue and cash flow growth. The company's commitment to capital returns and operational efficiency supports a positive outlook, despite leadership changes and market performance concerns.

Positive Factors

Debt Management

CIVI announced $435.0 million of non-core DJ Basin asset sales, surpassing its target and providing confidence in achieving its $4.5 billion net-debt target.

Financial Performance

CIVI reported strong 2Q25 results with oil production, DCFPS, EBITDA, and FCF exceeding expectations on lower capex.

Stock Buybacks

Aggressive $250.0 million of buybacks expected, representing ~10% of the market cap, is anticipated to result in a net positive response in the near term.

Negative Factors

Execution Challenges

Investors may have a tough time believing it can achieve the guidance following disappointing execution over the past few quarters.

Guidance Concerns

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

Macroeconomic Environment

CIVI's net-debt target is at risk, especially given that its asset sale target is likely more difficult to achieve in the current volatile macroeconomic environment.

Civitas Resources Business Overview & Revenue Model

Company Description

Civitas Resources (CIVI) is an independent oil and natural gas exploration and production company focused primarily on the Denver-Julesburg (DJ) Basin in Colorado. The company is dedicated to sustainable resource extraction and aims to leverage advanced technologies for efficient hydrocarbon recovery. Civitas specializes in the production of crude oil, natural gas liquids, and natural gas, positioning itself as a key player in the energy sector with a commitment to environmental stewardship and innovation.

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: Neutral
• Last Price: 34.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 34.71 is above the 20-day moving average (MA) of 33.34, above the 50-day MA of 31.28, and below the 200-day MA of 36.53, indicating a neutral trend. The MACD of 1.47 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, 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
CRC	82 Outperform	$4.16B	6.83	24.36%	3.15%	58.35%	210.80%
CIVI	73 Outperform	$3.41B	4.73	11.31%	8.70%	0.24%	-9.19%
SM	72 Outperform	$3.28B	4.04	19.27%	2.88%	28.20%	1.63%
MUR	71 Outperform	$3.55B	13.44	5.42%	4.92%	-18.08%	-49.36%
NOG	71 Outperform	$2.55B	4.41	27.17%	6.51%	2.98%	7.94%
CRGY	71 Outperform	$2.43B	23.27	0.70%	5.09%	32.84%	-755.17%
Sector *	65 Neutral	$15.47B	7.31	3.20%	5.32%	4.22%	-60.66%

Civitas Resources Corporate Events

Civitas Resources Announces $250M Share Buyback Agreement

On August 8, 2025, Civitas Resources, Inc. entered into an accelerated share repurchase agreement with a financial institution to buy back $250 million of its common stock. The agreement will see the company initially receive shares worth 80% of the repurchase price, with the final settlement expected in the third quarter of 2025. This move is significant for Civitas Resources as it reflects a strategic decision to manage its equity structure, potentially impacting its stock value and shareholder returns.

Civitas Resources Appoints Wouter van Kempen as Interim CEO

On August 6, 2025, Civitas Resources announced the termination of CEO M. Christopher Doyle without cause, with Wouter van Kempen appointed as the Interim CEO. Van Kempen, who has over 20 years of leadership experience in the energy industry, will lead the company during this transition while the board searches for a permanent CEO. The leadership change is part of the company’s strategy to enhance its market position and maximize stakeholder value.

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.

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.