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CIVI (Civitas Resources) Degree of Operating Leverage : 1.16 (As of Mar. 2025)


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What is Civitas Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Civitas Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Civitas Resources's Degree of Operating Leverage or its related term are showing as below:

CIVI's Degree of Operating Leverage is ranked worse than
52.87% of 906 companies
in the Oil & Gas industry
Industry Median: 0.99 vs CIVI: 1.16

Civitas Resources Degree of Operating Leverage Historical Data

The historical data trend for Civitas Resources's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Civitas Resources Degree of Operating Leverage Chart

Civitas Resources Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.26 1.56 1.77 3.67 0.53

Civitas Resources Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.36 - 0.84 0.53 1.16

Competitive Comparison of Civitas Resources's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Civitas Resources's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Civitas Resources's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Civitas Resources's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Civitas Resources's Degree of Operating Leverage falls into.


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Civitas Resources Degree of Operating Leverage Calculation

Civitas Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1522.472 (Mar. 2025) / 1210.954 (Mar. 2024) - 1 )/( 5066.652 (Mar. 2025) / 4146.981 (Mar. 2024) - 1 )
=0.2573/0.2218
=1.16***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Civitas Resources  (NYSE:CIVI) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Civitas Resources Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Civitas Resources's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Civitas Resources Business Description

Industry
Traded in Other Exchanges
Address
555 17th Street, Suite 3700, Denver, CO, USA, 80202
Civitas Resources Inc is an independent exploration and production company engaged in the acquisition, development, and production of oil and associated liquids-rich natural gas in the Rocky Mountain region, in the Denver-Julesburg Basin of Colorado - DJ Basin. The company's operations are focused on developing the horizontal Niobrara and Codell formations that have a low-cost structure, mature infrastructure, production efficiencies, multiple producing horizons, multiple service providers, established reserves, and prospective drilling opportunities.
Executives
Travis L Counts officer: Chief Legal Officer & Sec. 555 17TH STREET, SUITE 3700, DENVER CO 80202
Howard A. Willard director 6601 WEST BROAD STREET, RICHMOND VA 23230
Carrie M Fox director CIVITAS RESOURCES, INC., 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Marianella Foschi officer: Chief Financial Officer CIVITAS RESOURCES, INC., 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
M. Christopher Doyle officer: President & CEO 555 - 17TH STREET, SUITE 3700, DENVER CO 80022
Van Kempen Wouter T. director 370 17TH STREET, SUITE 2500, DENVER CO 80202
Canada Pension Plan Investment Board 10 percent owner ONE QUEEN STREET EAST, STE 2500, TORONTO ONTARIO A6 0000
Jeffrey S Kelly officer: Chief Transformation Officer C/O CIVITAS RESOURCES, 555 17TH STREET, SUITE 3700, DENVER CO 80202
Kimmeridge Energy Management Company, Llc director, 10 percent owner, other: See Remarks 15 LITTLE WEST 12TH STREET, 5TH FLOOR, NEW YORK NY 10014
Thomas Hodge Walker officer: Chief Operating Officer 1001 NOBLE ENERGY WAY, HOUSTON TX 77070
Deborah L Byers director C/O EXCELERATE ENERGY, INC., 2445 TECHNOLOGY FOREST BLVD., LEVEL 6, THE WOODLANDS TX 77381
Sandra Garbiso officer: Vice President and CAO 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Brian Cain officer: Chief Sustainability Officer 410-17TH STREET, SUITE 1400, DENVER CO 80202
Dean Tinsley officer: SVP, Operations 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Brant Demuth officer: EVP & Chief Financial Officer 410 - 17TH STREET, SUITE 1400, DENVER CO 80202