Video: Civitas CIVI Permian Pivot Yields Massive 9% Dividend Yield

December 20, 2023
  • 2.9% Base Yield, paying out 50% of average TTM quarterly Free Cash Flow as a variable dividend bringing full yield to 9%.
  • 582k acres in low-cost basins in the US, expecting to have 280 Mboe/d in production by the end of 2023.
  • Total 2024 production is expected to increase significantly, with quarterly production growing by at least 16% to 325 Mboe/d (thousands of barrels of oil equivalent per day).
  • Entered the oil-rich Permian basin, significantly increasing its production targets by 101 Mboe/d in 2023 and 168 Mboe/d in 2024.
  • These recent acquisitions are expected to surge earnings above $15/share in 2024, with 2024 guidance pointing to $1.8 billion in free cash flow.
  • OPEC+ production cuts and Mideast uncertainty could put upward pressure on pricing, bringing WTI oil back to the $80/bbl area.
  • Strong balance sheet, targeting a debt-to-EBITDA ratio of 0.9x by the end of fiscal 2024.
  • 15.6% pullback from its $82.63 high is an attractive entry point in our opinion.