Civitas Resources downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc downgraded Civitas Resources (CIVI) to Sector Weight from Overweight without a price target following the company’s “disappointing” 2025 guidance. No comment from management about media reports the company may divest the Denver-Julesburg Basin creates uncertainty, and the “abrupt termination” of the chief operations officer after 22 months “deeply concerns us as something other than a board mandate to cut costs,” the analyst tells investors in a research note. KeyBanc believes these factors, combined with a 2025 guide forecasting a 4% year-over-year decline in oil, will likely weigh on Civitas shares over the next few months.