Civitas Resources (CIVI) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: 9.1%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.39
• Revenue Growth: 0.24%
• EPS Growth: -9.19%
• Country: US
• Employees: 655
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.99
• Shares Outstanding: 92,660,010
• 10 Day Avg. Volume: 2,798,641
• 30 Day Avg. Volume: 1,994,431
• 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: 2.69
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: $41.50
• Price Target Upside: 25.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $37.00 ▲(11.51% Upside)

Civitas Resources' overall stock score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, indicating potential undervaluation. Positive earnings call sentiment and strategic corporate events further support the score. However, challenges in financial performance, particularly in revenue and cash flow growth, and technical analysis limitations temper the overall assessment.

Positive Factors

Asset Sales

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.

Negative Factors

Production Guidance

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

Stock Valuation

Price target was lowered to $37/share from $42/share.

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 financial performance with robust revenue and cash flow growth. The company maintains solid profitability and efficient cash flow management, although rising debt levels and capital expenditures require careful monitoring.

Income Statement

Civitas Resources has demonstrated strong revenue growth and profitability in the TTM (Trailing-Twelve-Months) period. The gross profit margin stands at 51.3%, indicating efficient cost management. The net profit margin is 16.7%, reflecting solid profitability, although slightly down from previous annual data. Revenue growth has been robust, with a significant increase from previous years, suggesting a positive trajectory. However, the decline in EBIT margin to 21.0% compared to the prior period indicates potential cost pressures or increased expenses.

Balance Sheet

The balance sheet of Civitas Resources is solid, with a debt-to-equity ratio of 0.76, indicating manageable leverage levels. The equity ratio is 43.7%, showing a healthy balance of equity financing. Return on equity is strong at 12.7%, reflecting efficient use of shareholder funds. However, the increase in total debt to $5.1 billion in the TTM period could pose a risk if not managed properly.

Cash Flow

Civitas Resources exhibits strong cash flow management, with a free cash flow to net income ratio of 1.62, indicating effective conversion of income to cash. The operating cash flow to net income ratio is 3.26, showing robust cash generation from operations. The free cash flow growth rate of 53.5% in the TTM period highlights excellent cash flow growth. However, significant capital expenditures should be monitored to ensure continued liquidity.

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: 33.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 33.18 is above the 20-day moving average (MA) of 30.38, above the 50-day MA of 30.14, and below the 200-day MA of 37.52, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 62.19 is Neutral, neither overbought nor oversold. The STOCH value of 78.55 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	77 Outperform	$4.06B	6.62	24.36%	3.18%	58.35%	210.80%
SM	72 Outperform	$3.10B	3.81	19.27%	2.96%	28.20%	1.63%
CIVI	71 Outperform	$2.93B	4.00	11.31%	9.10%	0.24%	-9.19%
CRGY	71 Outperform	$2.38B	23.27	0.70%	5.02%	32.84%	-755.17%
NOG	70 Outperform	$2.40B	4.05	27.17%	7.00%	2.98%	7.94%
MUR	69 Neutral	$3.31B	12.04	5.42%	5.38%	-18.08%	-49.36%
Sector *	65 Neutral	$14.83B	8.53	3.10%	5.45%	4.59%	-62.54%

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.

The most recent analyst rating on (CIVI) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

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.

The most recent analyst rating on (CIVI) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Civitas Resources stock, see the CIVI Stock Forecast page.

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.