Civitas Resources to Report Q3 Earnings: What's in the Offing?

Civitas Resources, Inc. CIVI is set to release third-quarter 2025 results on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share on revenues of $1.2 billion.

Let us delve into the factors that are likely to have influenced the oil and gas producer’s performance in the to-be-reported quarter. But it is worth taking a look at Civitas Resources’ previous-quarter performance first.

Highlights of CIVI’s Q2 Earnings & Surprise History

In the last reported quarter, this Denver, CO-based independent oil and gas company missed the consensus mark due to lower oil price realizations. Civitas Resources reported adjusted earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.12.  Also, the company’s quarterly revenues of $1.1 billion missed the consensus estimate by 5.2%.

CIVI’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed in two, resulting in a negative surprise of 2%, 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

CIVI’s Trend in Estimate Revision

The Zacks Consensus Estimate for the third-quarter bottom line has been revised 2.3% upward in the past seven days. The estimated figure indicates a 31.7% year-over-year decline. The consensus estimate for revenues indicates a 6.9% decrease from the year-ago period.

Factors to Consider Ahead of CIVI’s Q3 Results

CIVI's total revenues are expected to have suffered in the quarter to be reported. The company operates in two highly productive U.S. regions: the Denver-Julesburg (DJ) Basin in Colorado and the Permian Basin, which stretches across Texas and New Mexico.

The Zacks Consensus Estimate projects third-quarter revenues to decrease from the year-ago quarter’s $1.3 billion. With the sale of the DJ Basin assets, the company’s production volumes are expected to have decreased. For the second quarter, CIVI reported a year-over-year decline in earnings per share, and this trend is likely to continue in the to-be-reported quarter.

On a positive note, CIVI is targeting $40 million in cost savings in 2025 and $100 million in 2026, driven by efficiency initiatives, improved oil differentials from new transportation agreements, and sequentially lower lease operating and general and administrative costs.

What Does Our Model Predict for CIVI?

The proven Zacks model does not conclusively predict an earnings beat for Civitas Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP of CIVI: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.84%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

CIVI’s Zacks Rank: CIVI currently carries a Zacks Rank of 4 (Sell).

Stocks With the Favorable Combination

Here are some firms from the energy space, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.

Canadian Natural Resources Limited CNQ currently has an Earnings ESP of +1.55% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CNQ is scheduled to release earnings on Nov. 6. Notably, the Zacks Consensus Estimate for Canadian Natural’s 2025 revenues indicates 5.2% year-over-year growth. Valued at around $66.8 billion, the company’s shares have lost 6.7% in a year.

Delek US Holdings, Inc. DK has an Earnings ESP of +98.57% and a Zacks Rank of 3 at present. DK is slated to release earnings on Nov. 7.

Notably, the Zacks Consensus Estimate for Delek US Holdings' 2025 earnings per share indicates 36.4% year-over-year growth. Valued at around $2.3 billion, the company’s shares have soared 145.1% in a year.

Granite Ridge Resources, Inc. GRNT currently has an Earnings ESP of +3.70% and a Zacks Rank of 3. It is scheduled to release earnings on Nov. 6.

The Zacks Consensus Estimate for Granite Ridge’s 2025 earnings per share indicates 8.8% year-over-year growth. Valued at around $693 million, the company’s shares have lost 10.9% in a year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research