Civitas Resources (CIVI) Price Target Update - Jan 23

[dan_s]

Today I will be updating the forecast valuation models for the five upstream companies in our High Yield Income Portfolio.

TipRanks: "Civitas Resources price target raised on January 8 by $4 to $107/share by Neal Dingmann at Truist Financial."

Today, TipRanks consensus price target for CIVI is $97.00/share, which is the average of four analysts' updated price targets that range from $86 to $107.

CIVI is trading at $67.27 this morning.
My updated current valuation is $107, which is just 3.25 X annualized operating cash flow for 2023 to 2025.

Civitas closed the Midland Basin Acquisition from Vencer Energy on January 2nd. It pushes the Companies production up to 330,000 Boepd (~48% oil).

Civitas pays quarterly "Fixed + Variable" dividends that totaled $7.60 in 2023. Based on my forecast model (based on the midpoint of Civitas' updated guidance for 2024), they should be able to pay out dividends close to $10.00/share this year.

My updated forecast model has been posted to the EPG website. You can download it directly from the EPG home page.