Lawsuit filed for Investors who lost money with shares of Civitas Resources, Inc. (NYSE: CIVI)

An investor, who purchased shares of Civitas Resources, Inc. (NYSE: CIVI), filed a lawsuit alleged violations of Federal Securities Laws by Civitas Resources, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Civitas Resources, Inc. (NYSE: CIVI) have certain options and for certain investors are short and strict deadlines running. Deadline: July 1, 2025. NYSE: CIVI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Denver, CO based Civitas Resources, Inc., an exploration and production company, focuses on the acquisition, development, and production of crude oil and associated liquids-rich natural gas in the Denver-Julesburg ("DJ") Basin in Colorado and the Permian Basin in Texas and New Mexico. As of December 31, 2024, the Company owned a working interest in a net total of 530,200 acres. Civitas Resources, Inc. recognizes revenue from the sale of produced crude oil, natural gas, and natural gas liquids. Accordingly, maintaining high volumes of oil production is critical to the Company's ability to achieve revenue growth.

Throughout 2024, Civitas Resources, Inc. maintained steady oil production and accelerated the number of the Company's turned-in-lines ("TILs")-i.e., newly drilled oil wells that have been designated as operational and added to the total number of wells in which Civitas owns a working interest-between the DJ and Permian Basins.

On February 24, 2025, Civitas Resources, Inc. announced its financial results for the fourth quarter and full year 2024. Civitas Resources, Inc. (NYSE: CIVI) reported that its annual Total Revenue rose from over $3.47 billion in 2023 to over $5.2 billion in 2024 and that its Net Income increased from $787.28 million in 2023 to $838.72 million in 2024. Among other items, the Company reported revenue of $1.29 billion, missing consensus estimates by $3.44 million, and non-GAAP earnings per share of $1.78 for the quarter, missing consensus estimates by $0.21 per share. In addition, Civitas Resources, Inc.reported net income of $151.1 million, or $1.57 per share, compared with $302.9 million, or $3.23 per share, in the year-ago quarter, and interest expense-the cost incurred by an entity for borrowed funds-of $456.3 million for the year.

That same day, Civitas Resources, Inc. issued a press release detailing the Company's 2025 outlook, which Civitas claimed was "designed to maximize free cash flow." The press release listed several 2025 outlook highlights, including "[d]elivering oil production between 150 and 155 thousand barrels per day ('MBbl/d') on average,"-a year-over-year decline of approximately 4%-"[e]xpanding [its] Permian Basin position with a $300 million bolt-on transaction that adds 19,000 net acres and approximately 130 future development locations in the Midland Basin," and "[e]xecuting on [a] new divestment target of $300 million" meant to offset the foregoing transaction. Further, the press release stated, in relevant part, that "[f]irst quarter [2025] oil volumes are expected to be the low point for the year, averaging 140 to 145 MBbl/d, mostly as a result of few TILs in late 2024 and early 2025." The Company explained that "[a]s compared to the fourth quarter of 2024, lower volumes are primarily driven by the DJ Basin, due to natural declines following peak production in the fourth quarter, a low TIL count exiting 2024 and in the first quarter of 2025," as well as severe winter weather and unplanned third-party processing downtime in the first quarter. In addition, Civitas announced a 10% reduction in its workforce across all levels, purportedly to "solidify the Company's low-cost structure."

Finally, in a filing on Form 8-K with the United States Securities and Exchange Commission, Civitas also announced the termination of its Chief Operating Officer ("COO") Hodge Walker, who had occupied the role for only 22 months, and Chief Transformation Officer Jerome Kelly, effective immediately.

Market analysts were quick to comment on the Company's announcements, expressing particular concern about Civitas's reduced 2025 oil production guidance. For example, on February 24, 2025, the investment bank KeyBanc Capital Markets ("KeyBanc") downgraded Civitas to Sector Perform from Outperform, stating that it was "confused and disappointed" by the results and the "tepid" 2025 outlook, and finding it prudent to "wait for more clarity on operations [and] the balance sheet[.]" Further, KeyBanc noted that it was "anticipating news of inorganic debt reduction, likely in the form of a meaningful sale of DJ Basin assets, [but] news of another round of $300M of asset sales does not move the needle for a company with over $5B of debt (pro forma for 1Q25 transactions)." KeyBanc also stated that it was concerned by the Company's interest expense guidance and that the decision to buy Midland Basin acreage suggests Civitas "faces inventory depth concerns in the Permian Basin that are forcing its hand to backfill inventory amid a scarcity of available assets." Finally, in addition to balance sheet concerns, KeyBanc took issue with management's lack of clarity regarding the "fate of the DJ Basin," and stated that it had "less confidence and more questions about operations, given the updates [. . .] If drilling economics are as good as management claims, why let oil decline 5% (ex-acquisition) in a $70/[barrel of crude oil ('bbl') West Texas Intermediate ('WTI')] world? Why did management choose to have zero 4Q24 TILs, creating this significant production decline in 1Q25? How do these factors tie into the abrupt departure of a COO who had been in the role less than two years?"

Shares of Civitas Resources, Inc. (NYSE: CIVI) declined from $78.44 per share on May 09, 2024, to $22.79 per share on April 7, 2025.

The plaintiff claims that between February 27, 2024 and February 24, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that Civitas was highly likely to significantly reduce its oil production in 2025 as a result of, inter alia, declines following the production peak at the DJ Basin in the fourth quarter of 2024 and a low TIL count at the end of 2024, that increasing its oil production would require the Company to acquire additional acreage and development locations, thereby incurring significant debt and causing the Company to sell corporate assets to offset its acquisition costs, that the Company's financial condition would require it to implement disruptive cost-reduction measures including a significant workforce reduction, that accordingly, Civitas's business and/or financial prospects, as well as its operational capabilities, were overstated, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Civitas Resources, Inc. (NYSE: CIVI) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.