CIVI Stock Overview
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.
Civitas Resources Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$54.48|
|52 Week High||US$84.76|
|52 Week Low||US$44.17|
|1 Month Change||-20.48%|
|3 Month Change||0.87%|
|1 Year Change||18.62%|
|3 Year Change||139.16%|
|5 Year Change||65.14%|
|Change since IPO||-96.41%|
Recent News & Updates
Civitas Resources: A Colorado Producer On Dividend Steroids
Summary Civitas Resources came out with adjusted quarterly earnings of $4.63 per share in 2Q22, compared to $1.19 a year ago. Production for 2Q22 was 175.223K Boep/d, up 10.2% sequentially and up significantly from 42.323K Boep/d the same quarter a year ago. CIVI is paying a base quarterly dividend of $0.4625 and a quarterly variable dividend of $1.30 per share, payable in September. I recommend buying CIVI on any weakness between $65.3 and $57.5, with potential lower support at $46.00 in case of extreme retracement. Introduction Civitas Resources (CIVI) is Colorado's first carbon-neutral oil and gas producer concentrated in Colorado's Wattenberg Field of the Denver-Julesburg Basin, called the DJ Basin. The company owns some of its midstream infrastructures as well. CIVI Midstream (CIVI Presentation) Last year, Bonanza Creek Energy rebranded as Civitas Resources through the consolidation of fellow D-J Basin operators, first the all-stock merger with Extraction Oil & Gas and later Crestone Peak. Civitas Resources had 420 net MMBOE in Reserves in 2Q'22. CIVI 2Q22 Reserves (Civitas Resources Presentation) CEO Chris Doyle said in the conference call: As Colorado's largest pure-play E&P and first carbon-neutral E&P company on a Scope 1 and Scope 2 basis, Civitas is well positioned for future success within Colorado and the industry more broadly. We're a young company. We've come together over the past 18 months and there were certainly more work to be done. Note: Civitas is a new company for my marketplace, "the gold and oil corner," and my stock tracker, and it is my first article reporting on the quarterly results of this company. Civitas Resources released its second quarter of 2022 results on August 3, 2022. A reminder: On March 1, 2022, Civitas Resources closed its acquisition of Bison Oil & Gas II, LLC, with a total cash outlay by the company of approximately $300 million, which was funded with cash on hand. 1 - 2Q'22 results snapshot Civitas Resources came out with adjusted quarterly earnings of $4.63 per share in 2Q22, compared to $1.19 a year ago. Adjusted earnings beat analysts' expectations. GAAP net income of $468.82 million and Adjusted EBITDA of $739.2 million (EBITDA of $831.57 million) for the second quarter of 2022. Average daily sales volumes of 175.2K Boep/d, with oil representing 46% of total output and total capital expenditures of $238.6 million. CIVI retired $100 million of senior notes and exited the second quarter of 2022 with $392.51 million in debt. Total liquidity was $1.427 billion as of June 30, 2022, which consisted of $439.3 million cash plus funds available under the new credit facility. 2 - Stock performance Data by YCharts CIVI has done well on a one-year basis but has slightly underperformed the group, as shown in the chart above. CIVI has been up 59% since Sept. 2021. 3 - Investment thesis Crude oil prices underwent a tremendous rebound one year after the 2020 oil crash. Likewise, natural gas prices, which bottomed out in April 2020, recovered. In 2022, oil and gas prices soared, with crude oil trading at over $111 per barrel as of June 2022. This tremendous rise benefitted producers of oil and gas like Civitas Resources. West Texas crude oil is starting to retrace and is now below $90, and the rigs count is slowly decreasing but still much higher than a year ago. The total rig count fell to 760 this week-263 rigs higher than the rig count this time in 2021. CIVI is now following the trend and is retracing from its recent peak with a renewed strength since its early July low. But, with the FED's action, we may fall into a recession at the end of 2022, which will hamper oil demand. Thus, Civitas Resources should be considered a long-term investment, and it is appropriate to accumulate CIVI on any significant weakness. However, the volatility attached to the oil segment should push you to trade short-term LIFO using at least 30% of your entire position. This two-level strategy has prevailed in my marketplace, "The Gold and Oil Corner," and I believe it is the most rewarding strategy in those circumstances. Unfortunately, only US investors can use LIFO, but there is still an alternative for others. Please read my note at the end of this article. Civitas Resources - Financials and production in 2Q22 - The raw numbers Civitas Resources 2Q21 3Q21 4Q21 1Q22 2Q22 Total Revenues in $ Million 156.04 189.96 510.46 817.81 1151.36 Net income in $ Million -25.32 40.66 163.70 91.64 468.82 EBITDA $ Million 1.77 93.87 370.03 306.74 8company PS diluted in $/share -0.83 1.31 2.46 1.07 5.48 Operating Cash flow in $ Million 36.60 112.68 82.36 532.54 722.23 Capital Expenditure in $ Million 28.91 47.04 47.85 560.82 209.97 Free Cash Flow in $ Million 7.69 65.64 34.51 -28.28 512.26 Total cash $ Million 24.40 40.41 254.45 154.35 439.25 Total Long-term Debt in $ Million 199.00 160.00 491.70 492.12 392.51 Dividend $/share 0.4625 0.4625 0.4625 1.3625 1.7625 Shares outstanding (diluted) in Million 30.66 31.14 84.57 85.33 85.55 Source: Civitas Resources 10Q * From the press release: The Company's board of directors has elected to pay a dividend of $1.7625 per share in the third quarter, which reflects the combination of a variable dividend of $1.3000 per share and a base fixed dividend of $0.4625 per share. This dividend will be paid on September 29, 2022 to shareholders of record as of September 15, 2022. Analysis: Revenues, free cash flow, net debt, and oil & gas production 1 - Quarterly revenues and others were $1,151.36 million in 2Q'22 CIVI Quarterly Revenues history (Fun Trading) Net crude oil, natural gas, and natural gas liquids revenue for the second quarter of 2022 increased to $1,151.36 million compared to $817.81 million company the first quarter of 2022. The increase came from higher crude oil, natural company natural gas liquids realized prices, and increased sales volumes. Crude oil accounted for approximately 68% of total revenue for the quarter. 2 - Generic free cash flow was $512.26 million in 2Q'22 CIVI Quarterly Free cash flow history (Fun Trading) Note: The generic free cash flow is cash from operating activities minus CapEx. The company has a different way of calculating the FCF, which indicates $436.6 million in 2Q22. Operating cash flow is $722.23 million, and CapEx is $209.97 million in 2Q22. Trailing 12-month free cash flow is now $584.13 million, with the second quarter's free cash flow at $1,154 million. This excellent level of Free cash flow allows the company to pay an impressive dividend in September. CIVI is paying a base quarterly dividend of $0.4625 and a quarterly variable dividend of $1.30 per share. CIVI Quarterly determination of the dividend 2Q22 Payable in September (Civitas Resources)
Is Civitas Resources, Inc. (NYSE:CIVI) Trading At A 47% Discount?
How far off is Civitas Resources, Inc. ( NYSE:CIVI ) from its intrinsic value? Using the most recent financial data...
Civitas: A Pure Play With High Cash-Flow Makes A Strong Buy Case
Summary Civitas dividend yield is projected to be 12% for this year, with an Estimated Fair Value of $108 per CIVI share. Accretive acquisitions, all while keeping Debt/EBITDA below 0.5x for E2022. Civitas is the first-ever net-zero exploration and production firm in Colorado, using a combination of investment in emissions reduction and carbon offset credits. Highest-in-sector base dividend yield, paying out 50% FCF (Free Cash Flow) on top of 3.1% base. Investment Thesis Civitas Resources, Inc. (CIVI) is an oil and gas producer focused on the Denver-Julesburg Basin ((DJ)) in Colorado. Over approximately 500,000 acres, CIVI produces 175.2 mboe/d (thousands of barrels of oil equivalent per day). What sets CIVI apart is its low cost of operations, which produces a high free cash flow ("FCF") yield of 30%. The average annualized cash and lease operating expenses ((LOE)) cost for FY22 is at a sector-low $4.1/boe. CIVI has a fortress balance sheet with very low leverage target of only 0.5x Debt to EBITDA. This allows them to use much of the cash on hand for dividends, paying out a dividend yield north of 10%. The sales volume marks a 314% increase in crude oil equivalent, with a 79% increase in average sales price over the same 2Q22 period, year over year. Currently, the yield is at 12% with a base of 3.1% and 50% of trailing FCF paid out as a variable. The declared 3Q dividend represents a 30% increase to yield quarter over quarter, with $0.46 paid out as a base and $1.30 as a variable. This brings the annualized dividend up to $7.04. We believe that the stock is deeply undervalued and could easily double over the next year as investors realize the sustainability of the free cash generation and dividend that CIVI has. Estimated Fair Value ((EFV)) EFV = E2023 EPS of $12.00 times P/E of 9 = $12 X 9 = $108 CIVI 2Q22 Report Civitas Resources (CIVI) E2022 E2023 E2024 Price-to-Sales 2.1 2.0 1.9 Price-to-Earnings 7.2 6.3 5.4 EV/EBITDA 3.0 2.7 2.7 Business Model Oil and gas tend to be an expensive, high-leverage industry. However, CIVI remains committed to a "relentless" focus on keeping operating costs down. Expenses remain low for the sector, per barrel of oil equivalent: $2.63 going toward leasing, $4.99 going toward extraction, and $0.47 going toward midstream expenses. Year over year, costs have greatly increased in extraction at 40% but CIVI has saved significant money on midstream expenses after acquiring its own architecture. According to CIVI, extraction costs have a direct correlation to sales volumes, which increased 314% over the same period given the large boom in oil and gas recently. This is also aided by their pure-play strategy within the DJ basin, which has proven reserves well past 2030. These sector-low expenses allow CIVI to spend nearly $1 billion a year on capital expenditures, with at least $890 million going toward drilling and completion costs and $80 million going toward land acquisition costs and midstream costs. Excluding derivatives, CIVI could expect to see just over $1.5 billion in free cash flow at a yield of just over 30%. With the EIA expecting oil prices and gas prices to remain inflated well into FY23, CIVI's operations are very low sensitivity. So far in 2022, CIVI has 575 wells in the regulatory approval pipeline, with 70 locations fully approved, with 65 more awaiting final decision. The rest are in various stages of development, but CIVI expects to bring online 190 wells by the end of FY22.
|CIVI||US Oil and Gas||US Market|
Return vs Industry: CIVI underperformed the US Oil and Gas industry which returned 46.9% over the past year.
Return vs Market: CIVI exceeded the US Market which returned -21.6% over the past year.
|CIVI Average Weekly Movement||8.1%|
|Oil and Gas Industry Average Movement||7.8%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: CIVI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CIVI's weekly volatility (8%) has been stable over the past year.
About the Company
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.
Civitas Resources Fundamentals Summary
|CIVI fundamental statistics|
Is CIVI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CIVI income statement (TTM)|
|Cost of Revenue||US$511.27m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||8.99|
|Net Profit Margin||28.65%|
How did CIVI perform over the long term?See historical performance and comparison
8.8%Current Dividend Yield
Is CIVI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CIVI?
Other financial metrics that can be useful for relative valuation.
|What is CIVI's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CIVI's PE Ratio compare to its peers?
|CIVI PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CRK Comstock Resources
VNOM Viper Energy Partners
SM SM Energy
MTDR Matador Resources
CIVI Civitas Resources
Price-To-Earnings vs Peers: CIVI is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (10.3x).
Price to Earnings Ratio vs Industry
How does CIVI's PE Ratio compare vs other companies in the US Oil and Gas Industry?
Price-To-Earnings vs Industry: CIVI is good value based on its Price-To-Earnings Ratio (6.1x) compared to the US Oil and Gas industry average (9.1x)
Price to Earnings Ratio vs Fair Ratio
What is CIVI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||6.1x|
|Fair PE Ratio||20.3x|
Price-To-Earnings vs Fair Ratio: CIVI is good value based on its Price-To-Earnings Ratio (6.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).
Share Price vs Fair Value
What is the Fair Price of CIVI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CIVI ($54.48) is trading below our estimate of fair value ($158.22)
Significantly Below Fair Value: CIVI is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Civitas Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CIVI's forecast earnings growth (19.2% per year) is above the savings rate (1.9%).
Earnings vs Market: CIVI's earnings (19.2% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: CIVI's earnings are forecast to grow, but not significantly.
Revenue vs Market: CIVI's revenue (4.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CIVI's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CIVI's Return on Equity is forecast to be high in 3 years time
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How has Civitas Resources performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CIVI has high quality earnings.
Growing Profit Margin: CIVI's current net profit margins (28.6%) are higher than last year (10.9%).
Past Earnings Growth Analysis
Earnings Trend: CIVI has become profitable over the past 5 years, growing earnings by 46.8% per year.
Accelerating Growth: CIVI's earnings growth over the past year (1889.6%) exceeds its 5-year average (46.8% per year).
Earnings vs Industry: CIVI earnings growth over the past year (1889.6%) exceeded the Oil and Gas industry 184.6%.
Return on Equity
High ROE: CIVI's Return on Equity (15.3%) is considered low.
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How is Civitas Resources's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CIVI's short term assets ($1.0B) do not cover its short term liabilities ($1.5B).
Long Term Liabilities: CIVI's short term assets ($1.0B) exceed its long term liabilities ($947.9M).
Debt to Equity History and Analysis
Debt Level: CIVI has more cash than its total debt.
Reducing Debt: Insufficient data to determine if CIVI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CIVI's debt is well covered by operating cash flow (369.4%).
Interest Coverage: CIVI's interest payments on its debt are well covered by EBIT (46.6x coverage).
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What is Civitas Resources's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CIVI's dividend (8.81%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: CIVI's dividend (8.81%) is in the top 25% of dividend payers in the US market (4.45%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether CIVI's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if CIVI's dividend payments are increasing as they only just started paying a dividend.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (29.6%), CIVI's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (70.8%), CIVI's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Doyle (49 yo)
Mr. M. Christopher Doyle, also known as Chris, serves as Director of Civitas Resources, Inc. since July 2022. He served as an Executive Vice President of Operations - Northern Division at Chesapeake Energy...
Experienced Management: CIVI's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Experienced Board: CIVI's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CIVI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|13 Sep 22||SellUS$123,500||Sandra Garbiso||Individual||1,900||US$65.00|
|12 Sep 22||BuyUS$234,471||Travis Counts||Individual||3,556||US$65.94|
|10 Aug 22||BuyUS$2,005,797||M. Doyle||Individual||33,623||US$59.66|
|18 Mar 22||SellUS$362,347||Brian Cain||Individual||6,436||US$56.30|
|10 Mar 22||SellUS$56,872||Dean Tinsley||Individual||1,000||US$56.87|
|07 Mar 22||SellUS$56,970||Brant DeMuth||Individual||1,000||US$56.97|
|02 Mar 22||SellUS$144,525||Brant DeMuth||Individual||2,500||US$57.81|
|11 Jan 22||SellUS$203,496||Paul Keglevic||Individual||3,574||US$56.94|
|02 Nov 21||BuyUS$1,339,330||CPP Investments||Company||24,166||US$55.42|
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 175.6%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Civitas Resources, Inc.'s employee growth, exchange listings and data sources
- Name: Civitas Resources, Inc.
- Ticker: CIVI
- Exchange: NYSE
- Founded: 1999
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$4.633b
- Shares outstanding: 85.03m
- Website: https://civitasresources.com
Number of Employees
- Civitas Resources, Inc.
- 410 17th Street
- Suite 1400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|B2C||DB (Deutsche Boerse AG)||Yes||New Common Shares||DE||EUR||Dec 2011|
|CIVI||NYSE (New York Stock Exchange)||Yes||New Common Shares||US||USD||Dec 2011|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/23 00:00|
|End of Day Share Price||2022/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.