Civitas Resources (CIVI) Q3 Earnings Preview: Things to Know
Civitas Resources, Inc. CIVI is set to release third-quarter results on Nov 7. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $2.61 per share on revenues of $1 billion.
Let’s delve into the factors that might have influenced the Permian and Denver-Julesburg (DJ) Basin-focused upstream operator’s results in the September quarter. But it’s worth taking a look at CIVI’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the oil and gas producer beat the consensus mark on impressive production that came in ahead of expectations. CIVI had reported earnings per share of $1.72, beating the Zacks Consensus Estimate of $1.69. Revenues of $660.5 million generated by the firm also came in 3.7% above the Zacks Consensus Estimate.
Civitas Resources beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two, resulting in an earnings surprise of 2.7%, on average. This is depicted in the graph below:
Civitas Resources, Inc. Price and EPS Surprise
Civitas Resources, Inc. price-eps-surprise | Civitas Resources, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 26.7% deterioration year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 0.5% decrease from the year-ago period.
Factors to Consider
The Denver, CO-based company was formed out of the merger between Bonanza Creek Energy and Extraction Oil & Gas. CIVI’s high-quality asset base, disciplined capital allocation and fortress balance sheet allow it to maintain an attractive long-term cash flow profile.
The company is expected to have reaped the reward of higher production during the quarter. CIVI continues to churn out an impressive output from its high-quality assets across the DJ Basin, where it focuses on growth through a combination of acquisitions and active drilling.
In the previous three-month period, Civitas’ total output was up 8.8% sequentially to 173,491 barrels of oil equivalent per day. The uptick is expected to have continued in the to-be-reported quarter on the back of robust productivity from the company’s flagship fields and contribution from buyouts.
In addition to its legacy production gains, Civitas Resources’ output is expected to have been buoyed by the recently acquired Permian Basin assets.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Civitas Resources this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CIVI has an Earnings ESP of +5.92% and a Zacks Rank #2.
Other Stocks to Consider
Civitas Resources is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Diamondback Energy FANG has an Earnings ESP of +2.23% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov 6.
Over the past 90 days, Diamondback Energy saw the Zacks Consensus Estimate for 2023 move up 7.4%. Valued at around $28.5 billion, FANG has gained 3% in a year.
Delek US Holdings DK has an Earnings ESP of +5.26% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 7.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 90 days, Delek US Holdings saw the Zacks Consensus Estimate for 2023 move up 26.5%. Valued at around $1.7 billion, DK has lost 12.2% in a year.
Devon Energy DVN has an Earnings ESP of +0.72% and a Zacks Rank #2. The firm is scheduled to release earnings on Nov 7.
Over the past 90 days, Devon Energy saw the Zacks Consensus Estimate for 2023 move up 7.4%. Valued at around $29.8 billion, DVN has lost 34.7% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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