Civitas Resources Stock Fair Value – CIVITAS RESOURCES Reports Positive Q2 Earnings Results for FY2023
August 14, 2023
☀️Earnings Overview
On August 2nd 2023, CIVITAS RESOURCES ($NYSE:CIVI) reported its earnings results for the second quarter of FY2023, which ended on June 30th 2023. The total revenue for the quarter was USD 660.5 million, a decrease of 42.6% from the same period in the prior year. Net income for the quarter was USD 139.3 million, a drop of 70.3% compared to the same quarter in the previous year.
Market Price
CIVITAS RESOURCES reported strong earnings results for the second quarter of Fiscal Year 2023, with stock price opening at $74.7 and closing at $73.1. Although this showed a 3.0% decrease from the previous closing price of 75.4, it was still a positive sign of the company’s performance. Overall, CIVITAS RESOURCES reported positive second quarter earnings results, indicating a stable and profitable outlook for the company. This will encourage investors to invest in the company’s stock as they expect good returns from their investments in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Civitas Resources. More…
| Total Revenues | Net Income | Net Margin |
| 3.14k | 1.03k | 32.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Civitas Resources. More…
| Operations | Investing | Financing |
| 2.1k | -1.5k | 1.66k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Civitas Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.17k | 5.12k | 62.67 |
Key Ratios Snapshot
Some of the financial key ratios for Civitas Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 132.0% | 198.2% | 44.3% |
| FCF Margin | ROE | ROA |
| 30.3% | 17.1% | 8.5% |
Analysis – Civitas Resources Stock Fair Value
At GoodWhale, we have analyzed the fundamentals of CIVITAS RESOURCES and come to the conclusion that, based on our proprietary Valuation Line, the fair value of their share is around $76.8. At present, however, CIVITAS RESOURCES stock is traded at $73.1, indicating that it is slightly undervalued by 4.9%. Therefore, we recommend buying CIVITAS RESOURCES stock now to take advantage of the current market conditions. More…
Peers
Civitas Resources Inc is an exploration and production company with a focus on developing and exploiting unconventional natural gas resources in the United States. The company’s competitors include Australian Oil & Gas Corp, Canadian Natural Resources Ltd, and EOG Resources Inc.
– Australian Oil & Gas Corp ($OTCPK:AOGC)
AOG is a publicly traded company with a market cap of 356.04k as of 2022. The company’s ROE is 1.03%. AOG is engaged in the exploration, development, and production of oil and gas properties. The company has operations in the United States, Canada, and Australia.
– Canadian Natural Resources Ltd ($TSX:CNQ)
As of 2022, Canadian Natural Resources Ltd has a market cap of 88.51B. The company has a Return on Equity of 26.56%.
Canadian Natural Resources Ltd is a Canadian oil and gas company. The company’s businesses include oil sands development and upgrading, conventional oil and gas production, and natural gas liquids (NGL) extraction.
– EOG Resources Inc ($NYSE:EOG)
EOG Resources, Inc. explores for, develops, produces, and markets natural gas and crude oil in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, The People’s Republic of China, and Australia. As of December 31, 2020, it had proved reserves of 2.4 billion barrels of oil equivalent. The company was founded in 1985 and is headquartered in Houston, Texas.
Summary
Investing in CIVITAS RESOURCES has been a less than desirable decision based on their reported Q2 FY2023 earnings results. Total revenue for the quarter was USD 660.5 million, a decrease of 42.6% compared to the same period the previous year. Net income was even worse, decreasing 70.3% year-over-year to a reported USD 139.3 million.
Unsurprisingly, the stock price moved down on the day of its earnings announcement. Investors should be cautious when considering an investment in CIVITAS RESOURCES, as their earnings performance may not reflect the expected return on their investment.
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