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Civitas Resources, Inc. (CIVI) stock has reached a 52-week low, touching down at $42.22, signaling a period of bearish momentum for the energy company. Trading at a P/E ratio of just 4.84 and offering a substantial 10.08% dividend yield, InvestingPro analysis suggests the stock may be undervalued at current levels. This latest price level reflects a notable decline in investor confidence over the past year, with the stock experiencing a 1-year change of -21.98%. The downturn comes amidst a broader market evaluation of energy assets and investor speculation about the company’s future performance in a volatile energy sector. Despite the recent pressure, Civitas Resources has demonstrated strong fundamentals with 59.18% revenue growth, and six analysts have revised their earnings expectations upward. For deeper insights into CIVI’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Civitas Resources reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $1.78, missing the projected $1.94, and revenue was slightly below the forecast at $1.29 billion compared to the anticipated $1.3 billion. Despite generating a strong free cash flow of $1.3 billion for the year, the company announced a 10% workforce reduction as part of its efforts to streamline operations. Additionally, Civitas Resources returned over 70% of its free cash flow to shareholders through dividends and share repurchases. In a strategic move, the company announced a bolt-on transaction in the Midland Basin, adding 19,000 acres, while setting a $300 million asset sales target for 2025 to offset the purchase. The company has also received attention from analysts, with firms like TD Cowen and JPMorgan actively engaging in discussions about its capital allocation strategy. Looking ahead, Civitas Resources projects a free cash flow of $1.1 billion for 2025, assuming a $70 WTI oil price, and plans to invest between $1.8 to $1.9 billion in capital, focusing on the Permian and DJ Basins.
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