BMO Capital Keeps Civitas Resources at Hold, Sets $36.00 Price Target

BMO Capital analyst Phillip Jungwirth maintained a Hold rating and $36.00 price target for Civitas Resources. The analyst consensus is a Moderate Buy with an average price target of $41.50, representing a 32.76% upside. Civitas Resources reported a quarterly revenue of $1.19 billion and a net profit of $186 million for Q1 2023.

Civitas Resources (CIVI), an oil and gas exploration and production company, reported its Q2 2025 earnings, which were met with mixed reactions from analysts. The company reported earnings of $0.99 per share, falling short of the Zacks Consensus Estimate of $1.12 per share [1]. This represents an earnings surprise of -11.61%.

The company also reported revenues of $1.06 billion for the quarter, missing the Zacks Consensus Estimate by 5.19% [1]. This compares to year-ago revenues of $1.31 billion. Over the last four quarters, Civitas has not been able to beat consensus revenue estimates.

BMO Capital analyst Phillip Jungwirth maintained a Hold rating and a $36.00 price target for Civitas Resources [2]. The analyst consensus is a Moderate Buy with an average price target of $41.50, representing a 32.76% upside [2]. Civitas Resources reported a quarterly revenue of $1.19 billion and a net profit of $186 million for Q1 2023 [2].

The company's Q2 2025 earnings call highlighted strong operational efficiencies, enhanced capital returns, and significant debt reduction progress. However, the leadership change and concerns about debt levels offered some uncertainty [2]. The company aims to achieve $4.5 billion in net debt by the end of the year, supported by a strengthened balance sheet and a significant asset divestiture of $435 million [2]. The company also reported oil production growth of 6% quarter-over-quarter and a reduction in cash operating expenses by more than 10% [2].

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 27% of the 250 plus Zacks industries [1].

References:

[1] https://www.nasdaq.com/articles/civitas-resources-civi-q2-earnings-and-revenues-lag-estimates
[2] https://www.tipranks.com/stocks/civi/earnings