Overview

• Civitas Q3 net income at $177 mln, boosted by higher production and lower expenses

• Company repurchased $250 mln of stock, reducing shares by 8% in Q3

• Civitas announces merger with SM Energy, cancels earnings call

Outlook

• Civitas discontinues guidance due to pending merger with SM Energy

Result Drivers

• PRODUCTION INCREASE - Oil and total production rose 6% from Q2, reaching 158 MBbl/d and 336 MBoe/d, respectively

• LOWER OPERATING EXPENSES - Cash operating expenses decreased by 5% to $9.67 per BOE

• ASSET DIVESTMENT - Closed on divestment of two non-core DJ Basin assets, aiding financial performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Civitas Resources Inc is $41.00, about 37% above its November 5 closing price of $25.81

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw3HxKNCa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)