Civitas Resources: Rare Buying Opportunity With A Hefty Yield

Jun. 04, 2025 8:00 AM ETCivitas Resources, Inc. (CIVI) StockXOM, CVX, CIVI19 Comments
(7min)

Summary

  • Civitas Resources offers a compelling high-yield opportunity, trading at a steep discount at a forward P/E of 4.7 and a 7% dividend yield.
  • Despite recent production hiccups, CIVI's low breakeven cost structure and efficiency gains position it for resumed growth and robust free cash flow.
  • Management's disciplined capital allocation, cost optimization, and aggressive share repurchases enhance long-term value and shareholder returns.
  • While regulatory and geological risks exist, CIVI's strong fundamentals and undervaluation present significant upside potential for patient investors.
Silhouette of Oil pump. Industrial machine for petroleum on background of sunset

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Energy remains one of my favorite sectors at this time for bargain hunting on high-yield opportunities. While risks are elevated for this sector due to number of different factors, those with a longer time horizon may be well-positioned to reap substantial benefits

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About CIVI Stock

SymbolLast Price% Chg
CIVI
28.564.01%
Post28.51-0.18%
Chart
Combination chart with 2 data series.
The chart has 1 X axis displaying Time. Data ranges from 2025-06-02 09:30:00 to 2025-06-06 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 27.21 to 29.01.
End of interactive chart.
Market Cap
$2.54B
PE (FWD)
4.68
Yield
7.28%
Rev Growth (YoY)
22.15%
Short Interest
10.26%
Prev. Close
$27.46
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