Civitas Resources up as it weighs sale of DJ Basin assets

Civitas Resources

15/01/2025 15:46

** Shares of U.S.-based oil and gas producer Civitas
Resources  CIVI.N  rise 1.8% to $54.54
    ** Company is exploring a sale of some or all of its assets
in the Denver-Julesburg Basin, which could be valued at more
than $4 bln, Bloomberg News reports
    ** CIVI is working with a financial adviser to gauge buyer
interest in the assets and would be open to divesting fully from
the Colorado basin if it receives an attractive offer
    ** "A potential sale would remove the market/investor stigma
associated with Colorado, which is weighing on the valuation,
and turn CIVI into a pure-play Permian company" says Gabriele
Sorbara, analyst at Siebert Williams Shank
    ** Adds that valuation of $4 billion is reasonable, but the
company will be shrinking in scale which might not be well
received by the market
    ** Stock was down 28.6% in 2024

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))