Civitas Resources, Inc. (CIVI)

Civitas Resources' share price experienced a significant decline of 42.34% from January 6, 2025, to January 2, 2026. The company's Q4 2024 earnings missed analysts' estimates, leading to a stock fall, and a workforce reduction of approximately 10% was announced. Civitas added 19,000 net acres in the Permian basin through a $300 million transaction. The company's Q1 2025 earnings beat estimates, while Q2 2025 earnings missed estimates. Strategic expansion into the Permian Basin and focus on cost efficiency were noted as poised to enhance its portfolio and financial performance. Q3 2025 earnings beat expectations, but the earnings webcast was canceled due to a merger announcement with SM Energy Company. Civitas closed the divestment of two non-core DJ Basin assets and repurchased $250 million of its stock. Piper Sandler downgraded Civitas Resources stock to Neutral due to merger concerns, while UBS maintained its Neutral rating. SM Energy detailed its merger plans with Civitas, an all-stock deal valued at $7 billion, expected to close in Q1 2026.

Demand seasonality for Civitas Resources' products exists, particularly for natural gas and natural gas liquids (NGLs). Natural gas realizations have been impacted by weak Waha pricing, and NGL realizations have shown consistency with expected summer demand trends. Seasonal variations in demand influence pricing and revenue for these products.

Civitas Resources, Inc. (CIVI) is an independent exploration and production company focused on the acquisition, development, and production of crude oil and associated liquids-rich natural gas. It operates within the Oils-Energy sector, emphasizing operational efficiencies and carbon neutrality. The company was formed in 2021 through the merger of Bonanza Creek Energy, Extraction Oil & Gas, and Crestone Peak Resources.

Civitas Resources' primary assets are located in the Denver-Julesburg (DJ) Basin in Colorado and the Permian Basin in Texas and New Mexico. In the DJ Basin, it holds approximately 356,800 net acres targeting the Niobrara and Codell formations. In the Permian Basin, it holds over 120,400 net acres targeting the Spraberry and Wolfcamp formations of the Midland Basin and the Wolfcamp and Bone Spring formations of the Delaware Basin.

Civitas Resources has cultivated a reputation as a sustainable and responsible energy producer, recognized as Colorado's first carbon-neutral oil and gas producer. The company has demonstrated a commitment to reducing its environmental footprint, including lowering company-wide Scope 1 greenhouse gas emissions by 5.7% in 2024 compared to 2023, with a goal of a 40% reduction by 2030. Civitas is also committed to achieving carbon neutrality and zero routine flaring in the Permian Basin by 2026 and has set targets to reduce methane emissions intensity by 25% by 2026.

Civitas Resources, Inc. has a diverse ownership structure, with institutional investors holding a significant portion of the company’s stock. Approximately 95.58% of the company’s stock is owned by Institutional Investors, 1.20% by Insiders, and 3.22% by Public Companies and Individual Investors. Major institutional owners include Vanguard Group Inc, Canada Pension Plan Investment Board and BlackRock, Inc.. Pension Plan Investment Board Canada is the largest individual shareholder, owning 30.95 million shares, representing 36.28% of the company.