Overview

* Civitas Q3 net income at $177 mln, boosted by higher production and lower expenses

* Company repurchased $250 mln of stock, reducing shares by 8% in Q3

* Civitas announces merger with SM Energy, cancels earnings call

Outlook

* Civitas discontinues guidance due to pending merger with SM Energy

Result Drivers

* PRODUCTION INCREASE - Oil and total production rose 6% from Q2, reaching 158 MBbl/d and 336 MBoe/d, respectively

* LOWER OPERATING EXPENSES - Cash operating expenses decreased by 5% to $9.67 per BOE

* ASSET DIVESTMENT - Closed on divestment of two non-core DJ Basin assets, aiding financial performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Oil & $1.16

Gas bln

Sales

Q3 Capex $491 mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

* Wall Street's median 12-month price target for Civitas Resources Inc ( CIVI ) is $41.00, about 37% above its November 5 closing price of $25.81

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)