Civitas Resources, Inc. (NYSE: CIVI)

This lawsuit is for anyone who acquired securities in Civitas Resources, Inc. (NYSE: CIVI) from February 27, 2024 through February 24, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely disclose that oil production in the DJ Basin peaked in the fourth quarter of 2024 and that the Company was incurring significant expense to acquire additional acreage and development locations to increase its oil production.

On February 24, 2025, Civitas released its fourth quarter and full year 2024 financial results, significantly missing consensus estimates in revenue and non-GAAP earnings per share, as well as reporting a net income on $151.1 million, compared to $302.9 million the previous year, and interest expense of $456.3 million. Additionally, the Company released a disappointing 2025 outlook, stating 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,” and that, 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. The Company also announced a 10% reduction in workforce to “solidify the Company’s low-cost structure.” Further, Civitas disclosed the termination of its Chief Operating Officer and its Chief Transformation Officer, effective immediately. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Civitas Resources, Inc. (NYSE: CIVI) from February 27, 2024 through February 24, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.