CIVI Earnings Prediction
The chart below shows how CIVI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CIVI sees a +2.39% change in stock price 10 days leading up to the earnings, and a +3.90% change 10 days following the report. On the earnings day itself, the stock moves by -0.51%. This data can give you a slight idea of what to expect for the next quarter's release.
CIVI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.27B
22.79%
-3.10%
Gross Margin
46.39%
-21.11%
-6.75%
Operating Margin
32.69%
-35.86%
-11.31%
Net Margin
23.25%
72.48%
41.34%
EPS
3.01
92.95%
40.00%
No Data Available
CIVI Earnings Analysis
Civitas Resources, Inc. Corporation (CIVI.N) Earnings Conference Call
Positive
Robust Adjusted EBITDA: 1. Strong Adjusted EBITDA: Civitas Resources reported an adjusted EBITDA of $910 million for Q3 2024, driven by strong sales volumes and effective cost control measures.
Shareholder Return Strategy: 2. Significant Shareholder Returns: The company returned $227 million to shareholders during the quarter, with $104 million allocated to variable returns of capital, all directed towards share buybacks instead of dividends.
Oil Production Increase: 3. Increased Oil Production: October oil production averaged 165,000 barrels per day, representing a 3% increase in expected oil volumes quarter-over-quarter, primarily due to growth in the DJ Basin.
Permian Well Cost Reduction: 4. Lower Well Costs in Permian: Civitas achieved lower well costs in the Permian, with recent improvements in well performance leading to a more than 30% uplift in daily fluid throughput from sample fracs.
Record Oil Production: 5. Record Well Performance in DJ Basin: The Blue 4AH well in the DJ Basin set a Colorado record with a 90-day cumulative production of 165,000 barrels of oil, showcasing the strong performance of the company's legacy assets.
Negative
Production Challenges: 1. Production Downtime: Oil volumes were slightly below expectations due to unexpected downtime at third-party facilities in the DJ and water takeaway constraints in the Permian, impacting overall production.
Reduced Capital Investments: 2. Lower Capital Guidance: The company provided a lower capital guidance for the fourth quarter, indicating a reduction in capital investments compared to previous quarters, which may affect future growth.
Dividend Buyback Strategy: 3. Variable Dividend Shift: The decision to shift 100% of the third quarter variable return of capital to buybacks instead of paying a variable dividend reflects a cautious approach to shareholder returns amid market volatility.
Oil Decline Challenges: 4. High Decline Rates: The company noted that oil declines are approximately in the high 30s on an annual basis, indicating a need for continuous investment to maintain production levels.
Cautious M&A Stance: 5. Limited M&A Activity: The management expressed a cautious stance on M&A, stating that the current equity value does not match the underlying asset quality, which may limit growth opportunities.
CIVI FAQs
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CIVI Earning Call Sentiment
Civitas Resources, Inc. (CIVI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CIVI.N
-5.49%Positive
The earnings call highlights strong financial performance, including increased EBITDA and free cash flow, alongside strategic shifts to share buybacks, which are typically well-received by investors. Despite some operational challenges and economic risks, the company shows flexibility and a focus on capital efficiency. The Q&A reveals management's confidence in their strategy and willingness to adjust as needed. The combination of strong financial metrics, shareholder returns, and strategic focus on growth supports a positive sentiment, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
