Civitas Resources falls after Q4 profit miss

Civitas Resources

25/02/2025 12:01

(Updates)
    ** Shares of oil and gas producer Civitas Resources  CIVI.N 
drop ~7% to $45.93 premarket
    ** Co misses Q4 profit estimate; posts adj. EPS of $1.78 vs
est. of $1.98 - data compiled by LSEG
    ** Co to lay off 10% of its workforce and expects to reduce
2025 year-end net debt below $4.5 billion
    ** Says free cash flow generated in 2025 is anticipated to
cover the payment of the base dividend and meet the company's
year-end net debt target
    ** CIVI also terminated its COO Hodge Walker "without
cause", effective immediately, CEO Christopher Doyle will assume
additional role of principal operating officer
    ** Brokerage Keybanc Capital Markets downgrades stock to
"sector weight" from "overweight" and removes its PT of $84
    ** Lack of commentary on DJ Basin asset sales, abrupt
termination of the COO and forecast of 4% y-o-y decline in oil
production in 2025 are likely to weigh on shares over the next
few months - Keybanc
    ** "We can't defend CIVI shares amid operational volatility
and little deleveraging. We expect these items to overshadow
positives in the report"
    ** As of last close, stock is up 7.5% YTD

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com;))