Civitas Resources: Upgrading To Buy On Transformational Merger With SM Energy
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Dmytro Lebid752 FollowersFollow5ShareSavePlay(15min)CommentsSummaryCivitas Resources and SM Energy are merging in a $12.8B deal, forming a top-10 US oil producer.The merger targets $200–$300M in annual synergies, debt reduction to 1.0x leverage by 2027, and operational scale benefits.Risks include geographic dispersion, limited operational overlap, inventory quality concerns, and reduced dividends for CIVI shareholders.I upgrade both CIVI and SM to 'Buy,' citing strategic scale, cost optimization, and improved financial outlook post-merger. zhengzaishuru/iStock via Getty Images Investment thesis Following my most recent publication on Civitas Resources (CIVI), in which I recommended a "Sell," the stock price has shown modest growth of +3.5%. At the same time, the stock initially declined in value until the marketThis article was written byDmytro Lebid752 FollowersFollowMy professional journey in the investment field began in 2011. Today, I combine the roles of an Investment Consultant and an Active Intraday Trader. This synergistic approach allows me to maximize returns by leveraging deep knowledge in economics, fundamental investment analysis, and technical trading.
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