We recently published a list of Top 10 Oil & Gas E&P Stocks Outperforming Despite Sinking Oil Prices. In this article, we are going to take a look at where Civitas Resources, Inc. (NYSE:CIVI) stands against other top oil & gas E&P stocks outperforming despite sinking oil prices.
Oil prices have crashed by as much as 8.5% since the start of this month as Donald Trump reignites the tariff war. At one point, it was down as much as 18%! The broader market, as well as investors, have come to terms with a harsh reality: the tariffs are here to stay!
Inflation resulting from these tariffs threatens to send the country’s economy into recession, and global oil demand is reacting accordingly. The oil prices continue to tumble, threatening the future of some of the major oil producers of the world.
Amid this uncertain environment, some oil and gas stocks are outperforming the market. We decided to take a look at these stocks to find gems that can help retail investors outperform the market in these tough times.
To come up with our list of the top 10 oil & gas stocks outperforming despite sinking oil prices, we looked at the oil & gas exploration and production industry, considering only the stocks with a market cap between $2 billion and $10 billion.
A close up of a tanker truck transporting crude oil, natural gas liquids, and natural gas.
Civitas Resources, Inc. (NYSE:CIVI)
Civitas Resources, Inc. (NYSE:CIVI) operates as a production and exploration company. The company acquires, develops, and produces crude oil and associated liquids-rich natural gas. After going through some major challenges at the start of the year, the stock is now following an upward trend over the last few trading sessions, up 9.38% for the week.
Through its low-cost structure, the company is well-positioned to manage the commodity price risk. Management expects $1.1 billion in free cash flow in 2025, which could be used to optimize shareholder returns through share buybacks and dividends. Something that’s worth noting is the company’s attractive dividend yield of 14.7%.
According to 19 different analyst ratings, Civitas Resources (NYSE:CIVI) has a highest target price of $79, which means the price could more than 2.5x from the current levels if the bull thesis holds true. The stock has already taken an upward trajectory and is likely to follow the same trend in the future.
Overall, CIVI ranks 1st on our list of top oil & gas E&P stocks outperforming despite sinking oil prices. While we acknowledge the potential of CIVI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than CIVI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
