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Civitas Q2 Earnings and Revenues Miss Estimates, Both Fall Y/Y
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Key Takeaways
CIVI's Q2 EPS of 99 cents miss estimates, down Y/Y on weaker oil price realizations.
$435M DJ Basin asset sale exceeded target, with proceeds earmarked for debt reduction.
Capital return plan reinstated 50% free cash flow to buybacks, 50% to debt; $750M repurchase approved.
Civitas Resources, Inc. (CIVI - Free Report) reported second-quarter 2025 adjusted earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.12. Moreover, the bottom line declined from the year-ago adjusted profit of $2.06. The underperformance was due to lower oil price realizations.
However, Civitas’ revenues of $1.1 billion dropped 19.5% from the year-ago figure of $1.3 billion and missed the Zacks Consensus Estimate by 5.2%. This was primarily due to a decline in oil and natural gas sales volume.
Civitas Resources, Inc. Price, Consensus and EPS Surprise
The company has signed agreements to sell non-core DJ Basin assets for $435 million, surpassing its full-year 2025 asset sale target and achieving a valuation of more than 4x estimated EBITDAX. The transactions, anticipated to close by the end of third-quarter 2025, will have the proceeds directed toward debt reduction.
On Aug. 6, 2025, the company announced authorization for reinstating its capital return strategy, allocating 50% of free cash flow, after the base dividend, to share buybacks and the remaining 50% to annual debt reduction. The board has raised the share repurchase authorization to $750 million and Civitas intends to launch a $250 million accelerated share repurchase program.
CIVI’s Production & Price Realizations
The average second-quarter sales volume (comprising 72% liquids) fell 7.5% from the year-ago level to 317 thousand barrels of oil equivalent per day (Mboe/d) and missed the Zacks Consensus Estimate of 324.4 Mboe/d. Oil volume for the period was 149 thousand barrels per day (MBbls/d), down 3.9% year over year. The consensus mark was pegged at 150 MBbls/d of crude. CIVI’s natural gas production was 524 thousand cubic feet per day, while NGL output totaled 80 MBbls/d.
The average sales price for oil during the second quarter was $63.87 per barrel, down 20% from the prior-year realization of $80 and slightly above the consensus mark of $63. The average realized natural gas price was $1 per thousand cubic feet compared with 17 cents in the year-earlier period and the Zacks Consensus Estimate of $1.53. Meanwhile, the average realized NGL price fell to $18.99 per barrel from $20.94 in the second quarter of 2024.
Costs & Expenses of CIVI
Total operating expenses in the quarter fell to $887 million from the year-ago quarter’s $926 million. This was mainly on account of lower taxes and depreciation outgo, even as lease operating expenses rose 24.4% year over year to $158 million. Unit cash operating cost was $10.19 per BOE.
CIVI’s Financial Position
Cash flow from operations totaled $298 million, while Civitas’ capital expenditure totaled $506 million, leading to adjusted free cash flow of $123 million. The company approved a quarterly dividend of 50 cents per share, payable on Sept. 25 to its shareholders of record as of Sept. 11, 2025.
As of June 30, the company had $69 million in cash and cash equivalents. Civitas had a long-term debt of $5.4 billion, reflecting a debt-to-capitalization of 44.2%.
Guidance of CIVI
This Zacks Rank #3 (Hold) company has maintained its previously announced full-year 2025 guidance. For the third quarter, CIVI is targeting an average sales volume in the range of 327-338 Mboe/d, with oil output between 154 MBbls/d and 160 MBbls/d. The company has guided its capital spending within $460 million and $500 million for the upcoming quarter, while unit cash operating outgo is expected to be $9.80-$10.30 per BOE.
While we have discussed CIVI’s second-quarter results in detail, let us take a look at three other key reports in this space.
Coterra Energy Inc. (CTRA - Free Report) reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.
This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.
As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.
Imperial Oil Limited (IMO - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.
Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.
As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.
TC Energy Corporation (TRP - Free Report) reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.
This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.
As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.
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Civitas Q2 Earnings and Revenues Miss Estimates, Both Fall Y/Y
Key Takeaways
Civitas Resources, Inc. (CIVI - Free Report) reported second-quarter 2025 adjusted earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.12. Moreover, the bottom line declined from the year-ago adjusted profit of $2.06. The underperformance was due to lower oil price realizations.
However, Civitas’ revenues of $1.1 billion dropped 19.5% from the year-ago figure of $1.3 billion and missed the Zacks Consensus Estimate by 5.2%. This was primarily due to a decline in oil and natural gas sales volume.
Civitas Resources, Inc. Price, Consensus and EPS Surprise
Civitas Resources, Inc. price-consensus-eps-surprise-chart | Civitas Resources, Inc. Quote
The company has signed agreements to sell non-core DJ Basin assets for $435 million, surpassing its full-year 2025 asset sale target and achieving a valuation of more than 4x estimated EBITDAX. The transactions, anticipated to close by the end of third-quarter 2025, will have the proceeds directed toward debt reduction.
On Aug. 6, 2025, the company announced authorization for reinstating its capital return strategy, allocating 50% of free cash flow, after the base dividend, to share buybacks and the remaining 50% to annual debt reduction. The board has raised the share repurchase authorization to $750 million and Civitas intends to launch a $250 million accelerated share repurchase program.
CIVI’s Production & Price Realizations
The average second-quarter sales volume (comprising 72% liquids) fell 7.5% from the year-ago level to 317 thousand barrels of oil equivalent per day (Mboe/d) and missed the Zacks Consensus Estimate of 324.4 Mboe/d. Oil volume for the period was 149 thousand barrels per day (MBbls/d), down 3.9% year over year. The consensus mark was pegged at 150 MBbls/d of crude. CIVI’s natural gas production was 524 thousand cubic feet per day, while NGL output totaled 80 MBbls/d.
The average sales price for oil during the second quarter was $63.87 per barrel, down 20% from the prior-year realization of $80 and slightly above the consensus mark of $63. The average realized natural gas price was $1 per thousand cubic feet compared with 17 cents in the year-earlier period and the Zacks Consensus Estimate of $1.53. Meanwhile, the average realized NGL price fell to $18.99 per barrel from $20.94 in the second quarter of 2024.
Costs & Expenses of CIVI
Total operating expenses in the quarter fell to $887 million from the year-ago quarter’s $926 million. This was mainly on account of lower taxes and depreciation outgo, even as lease operating expenses rose 24.4% year over year to $158 million. Unit cash operating cost was $10.19 per BOE.
CIVI’s Financial Position
Cash flow from operations totaled $298 million, while Civitas’ capital expenditure totaled $506 million, leading to adjusted free cash flow of $123 million. The company approved a quarterly dividend of 50 cents per share, payable on Sept. 25 to its shareholders of record as of Sept. 11, 2025.
As of June 30, the company had $69 million in cash and cash equivalents. Civitas had a long-term debt of $5.4 billion, reflecting a debt-to-capitalization of 44.2%.
Guidance of CIVI
This Zacks Rank #3 (Hold) company has maintained its previously announced full-year 2025 guidance. For the third quarter, CIVI is targeting an average sales volume in the range of 327-338 Mboe/d, with oil output between 154 MBbls/d and 160 MBbls/d. The company has guided its capital spending within $460 million and $500 million for the upcoming quarter, while unit cash operating outgo is expected to be $9.80-$10.30 per BOE.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed CIVI’s second-quarter results in detail, let us take a look at three other key reports in this space.
Coterra Energy Inc. (CTRA - Free Report) reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.
This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.
As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.
Imperial Oil Limited (IMO - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.
Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.
As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.
TC Energy Corporation (TRP - Free Report) reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.
This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.
As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.