Civitas Resources: A Contrarian Bet In The Energy Sector

  • Civitas Resources is deeply undervalued due to sector underperformance and oil price fears, but operational improvements and exploration tailwinds offer strong upside. The company boasts a low $40 WTI breakeven, robust free cash flow, and aggressive debt reduction, supporting both dividends and share repurchases. Valuation is compelling with a 3.64x P/E and 0.44x price-to-book, providing a high margin of safety and a 6% dividend yield.