Civitas Resources Inc (CIVI)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,082,695	1,261,830	1,042,076	942,744	999,454	995,998	1,368,768	1,806,403	1,653,853	1,509,771	1,023,898	366,894	251,731	15,776	-32,550	-35,733	42,981	84,092	112,056	191,980
Revenue (ttm)	US$ in thousands	5,094,450	4,839,420	4,526,829	3,865,899	3,296,241	3,066,349	3,106,445	3,597,935	3,775,144	3,476,852	2,665,287	1,674,922	923,213	476,935	347,546	228,560	215,005	232,434	248,784	298,938
Pretax margin		21.25%	26.07%	23.02%	24.39%	30.32%	32.48%	44.06%	50.21%	43.81%	43.42%	38.42%	21.91%	27.27%	3.31%	-9.37%	-15.63%	19.99%	36.18%	45.04%	64.22%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,082,695K ÷ $5,094,450K
= 21.25%

Civitas Resources Inc's pretax margin has fluctuated over the analyzed period, ranging from strong profitability to periods of losses.

From March 31, 2020, to June 30, 2020, the company experienced a noticeable decline in pretax margin from 64.22% to 45.04%, indicating a possible decrease in operational efficiency or an increase in operating expenses relative to revenue.

The trend continued with a further decrease in pretax margin to 19.99% by December 31, 2020. However, a significant shift occurred in the following months, as the pretax margin turned negative, reaching -15.63% by March 31, 2021, and -9.37% by June 30, 2021. This implies that the company was operating at a loss before taxes during this period.

There was a gradual improvement in pretax margin in the subsequent quarters, with the company returning to positive territory by September 30, 2021, at 3.31%. The positive momentum continued, with pretax margins of 27.27%, 21.91%, and 38.42% by December 31, 2021, March 31, 2022, and June 30, 2022, respectively.

By September 30, 2022, the pretax margin increased further to 43.42%, indicating a strong rebound in profitability. The trend continued into 2023, with pretax margins remaining relatively stable around 40%, albeit with a slight decline to 30.32% by December 31, 2023.

In the first half of 2024, the pretax margin continued to decrease, reaching 23.02% by June 30, 2024, and 21.25% by December 31, 2024, suggesting potential challenges affecting the company's profitability during this period.

Overall, Civitas Resources Inc's pretax margin analysis highlights both strengths and weaknesses in its operational performance, demonstrating the importance of closely monitoring and managing profitability to sustain long-term financial health.