Here is Why Civitas Resources (CIVI) is a Great Addition to Your Dividend Portfolio

Civitas Resources, Inc. (NYSE:CIVI) is included among the 15 Best Natural Gas and Oil Dividend Stock to Buy Now.

To make sure it keeps its shareholders happy, Civitas Resources, Inc. (NYSE:CIVI) increased its share repurchase authorization to $750 million in August, equal to around 28% of its market cap at the time. The company also announced plans to allocate 50% of its free cash flow after the base dividend to share buybacks on an annual basis, and the remainder to debt reduction.

To ensure a steady growth in margins and returns, Civitas Resources, Inc. (NYSE:CIVI) remains on track with its previously announced $100 million of cost optimization and efficiency initiatives. The company estimates the impact of this initiative to be $40 million in the current financial year.

That said, the share price of CIVI has plunged by over 35% since the beginning of 2025. Diamond Hill Capital, an investment management firm, stated the following about Civitas Resources, Inc. (NYSE:CIVI) in its Q2 2025 investment letter:

“Among our bottom individual Q2 contributors to return were Insperity and Civitas Resources, Inc. (NYSE:CIVI). Shares of oil and gas exploration and production company Civitas were pressured by the combination of growing macroeconomic concerns in the wake of April’s tariff announcements and OPEC’s announcement that it would unwind production cuts early, possibly materially increasing supply in a weaker demand environment and weighing on oil prices.”

Civitas Resources, Inc. (NYSE:CIVI) is an oil and gas exploration and production company with assets in Colorado and Texas.

While we acknowledge the potential of CIVI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.