Civitas Resources (CIVI) Valuation Update - Apr 11
Posted: Thu Apr 11, 2024 1:49 pm
At the time of this post CIVI was trading at $74.77.
Neal Dingmann at Truist Financial and Mark Lear at Piper Sandler (both rated 5-Stars by TipRanks), have recently rated CIVI as a BUY with identical price targets of $103/share. In the last 3 months, 6 ranked analysts set 12-month price targets for CIVI. The average price target among the analysts is $91.02. < The other four price targets are from analysts' reports dated before March, so based on much lower oil prices.
I have updated my forecast/valuation model for my updated oil & gas price deck. My valuation increases to $112/share.
Civitas closed the Midland Basin Acquisition from Vencer Energy on January 2nd. It adds ~62,000 Boepd of current production (50% crude oil).
CIVI is in our High Yield Income Portfolio because it pays a large "Base + Variable" quarterly dividend. Total dividends paid in 2023 were $7.60/share. Based on my forecast, this year's dividends should total $7.81/share for annualized yield of ~10.4% based on today's share price.
CIVI also is a Growth Company. Production increased by 24.5% YOY in 2023. Primarily due to the Vencer acquisition, production should increase by more than 58% this year based on the Company's guidance.
My updated forecast model has been posted to the EPG website.
Neal Dingmann at Truist Financial and Mark Lear at Piper Sandler (both rated 5-Stars by TipRanks), have recently rated CIVI as a BUY with identical price targets of $103/share. In the last 3 months, 6 ranked analysts set 12-month price targets for CIVI. The average price target among the analysts is $91.02. < The other four price targets are from analysts' reports dated before March, so based on much lower oil prices.
I have updated my forecast/valuation model for my updated oil & gas price deck. My valuation increases to $112/share.
Civitas closed the Midland Basin Acquisition from Vencer Energy on January 2nd. It adds ~62,000 Boepd of current production (50% crude oil).
CIVI is in our High Yield Income Portfolio because it pays a large "Base + Variable" quarterly dividend. Total dividends paid in 2023 were $7.60/share. Based on my forecast, this year's dividends should total $7.81/share for annualized yield of ~10.4% based on today's share price.
CIVI also is a Growth Company. Production increased by 24.5% YOY in 2023. Primarily due to the Vencer acquisition, production should increase by more than 58% this year based on the Company's guidance.
My updated forecast model has been posted to the EPG website.