BUZZ-Civitas Resources up as it weighs sale of DJ Basin assets

Shares of U.S.-based oil and gas producer Civitas Resources CIVI.N rise 1.8% to $54.54

Company is exploring a sale of some or all of its assets in the Denver-Julesburg Basin, which could be valued at more than $4 bln, Bloomberg News reports

CIVI is working with a financial adviser to gauge buyer interest in the assets and would be open to divesting fully from the Colorado basin if it receives an attractive offer

"A potential sale would remove the market/investor stigma associated with Colorado, which is weighing on the valuation, and turn CIVI into a pure-play Permian company" says Gabriele Sorbara, analyst at Siebert Williams Shank

Adds that valuation of $4 billion is reasonable, but the company will be shrinking in scale which might not be well received by the market

Stock was down 28.6% in 2024

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))