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

Core Viewpoint - Civitas Resources, Inc. (NYSE:CIVI) is recognized as one of the best natural gas and oil dividend stocks to consider for investment, despite recent challenges in its share price and market conditions [1]. Group 1: Shareholder Returns and Financial Strategy - In August, Civitas Resources increased its share repurchase authorization to $750 million, representing approximately 28% of its market capitalization at that time [2]. - The company plans to allocate 50% of its free cash flow after the base dividend to share buybacks annually, with the remainder directed towards debt reduction [2]. Group 2: Cost Optimization and Efficiency Initiatives - Civitas Resources is implementing $100 million in cost optimization and efficiency initiatives, expecting a $40 million impact in the current financial year [3]. Group 3: Market Performance and Challenges - The share price of Civitas Resources has declined by over 35% since the beginning of 2025, influenced by macroeconomic concerns and OPEC's decision to unwind production cuts, which may increase supply amid weaker demand [4]. - The company operates in the oil and gas exploration and production sector, with assets located in Colorado and Texas [4].