BUZZ-Civitas Resources falls after Q4 profit miss

Updates

Shares of oil and gas producer Civitas Resources CIVI.N drop ~7% to $45.93 premarket

Co misses Q4 profit estimate; posts adj. EPS of $1.78 vs est. of $1.98 - data compiled by LSEG

Co to lay off 10% of its workforce and expects to reduce 2025 year-end net debt below $4.5 billion

Says free cash flow generated in 2025 is anticipated to cover the payment of the base dividend and meet the company's year-end net debt target

CIVI also terminated its COO Hodge Walker "without cause", effective immediately, CEO Christopher Doyle will assume additional role of principal operating officer

Brokerage Keybanc Capital Markets downgrades stock to "sector weight" from "overweight" and removes its PT of $84

Lack of commentary on DJ Basin asset sales, abrupt termination of the COO and forecast of 4% y-o-y decline in oil production in 2025 are likely to weigh on shares over the next few months - Keybanc

"We can't defend CIVI shares amid operational volatility and little deleveraging. We expect these items to overshadow positives in the report"

As of last close, stock is up 7.5% YTD