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

Core Insights - Civitas Resources, Inc. (CIVI) is expected to report third-quarter 2025 results on November 6, with earnings estimated at $1.36 per share and revenues projected at $1.2 billion [1][9] Group 1: Previous Performance - In the last reported quarter, Civitas Resources missed the consensus earnings estimate, reporting adjusted earnings per share of 99 cents compared to the expected $1.12, and revenues of $1.1 billion, which was 5.2% below the consensus [2] - Over the last four quarters, CIVI has beaten the Zacks Consensus Estimate twice and missed twice, resulting in an average negative surprise of 2% [3] Group 2: Q3 2025 Expectations - The Zacks Consensus Estimate indicates a 31.7% year-over-year decline in earnings for the third quarter, with revenues expected to decrease by 6.9% from the previous year's $1.3 billion [3][5] - The company's production volumes are anticipated to have decreased due to the sale of DJ Basin assets, continuing the trend of year-over-year declines in earnings per share [4][5] Group 3: Cost Management Initiatives - Civitas Resources is targeting $40 million in cost savings for 2025 and $100 million for 2026, driven by efficiency initiatives and improved oil differentials from new transportation agreements [6][9] Group 4: Earnings Prediction Model - The proven Zacks model does not predict an earnings beat for Civitas Resources this time, as the Earnings ESP is -1.84% and the company holds a Zacks Rank of 4 (Sell) [7][8]