NEW YORK, May 8, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Civitas Resources, Inc. (NYSE: CIVI).Shareholders who purchased shares of CIVI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/civitas-resources-loss-submission-form/?id=147324&from=4 CLASS PERIOD: February 27, 2 ...

Civitas Resources (CIVI) reported $1.19 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 10.2%. EPS of $1.77 for the same period compares to $1.74 a year ago.The reported revenue represents a surprise of -0.63% over the Zacks Consensus Estimate of $1.2 billion. With the consensus EPS estimate being $1.68, the EPS surprise was +5.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Civitas Resources (CIVI) came out with quarterly earnings of $1.77 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.36%. A quarter ago, it was expected that this oil and gas company would post earnings of $1.95 per share when it actually produced earnings of $1.78, delivering a surprise of -8.72%. Over the last four quarter ...

Financial Performance & Targets - Civitas reported $786 million in Adjusted EBITDAX for 1Q25[28] - The company generated $171 million in Adjusted Free Cash Flow (FCF) in 1Q25[28] - Civitas is targeting $45 billion in Net Debt by YE25, representing an $800 million reduction from YE24 pro-forma[10, 51] - The company aims to achieve $300 million in divestments by YE25[10] Cost Optimization & Efficiency - Civitas has a $100+ million cost optimization and efficiency initiative[10, 15] - Approximately $40 million of annualized savings are expected to impact FY25[10, 16] - DJ Basin completion efficiencies are up 10% from plan[28] Production & Hedging - 42% of wells drilled in 1Q25 were in the Permian Basin program[28, 37] - The company increased oil hedging to nearly 50% of 2025 production with average floors of ~$68/Bbl[23, 51] - 1Q25 total production was 311 MBoe/d, with oil production at 141 MBbl/d[49] Shareholder Returns - Civitas returned $121 million to shareholders in 1Q25, including ~$50 million in dividends and ~$71 million in share repurchases (15 million shares)[28] - The company maintains a resilient base dividend of $2/share annually[51]

Financial Performance - Net income for the quarter was $186 million, or $1.99 per diluted share, with cash flows from operating activities amounting to $719 million[106]. - Product revenues decreased by 8% to $1.2 billion for the three months ended March 31, 2025, down from $1.3 billion in the previous quarter[123]. - Total operating expenses decreased by 10% to $879 million for the three months ended March 31, 2025, compared to $974 million for the three months ended December 31, 2024[124]. - Adjusted EBITDAX for Q1 2025 was $786 million, down from $895 million in Q4 2024[152]. - Adjusted Free Cash Flow for Q1 2025 was $171 million, significantly lower than $520 million in Q4 2024[153]. Sales and Production - Total sales volumes decreased by 14% to 28 MMBoe for the three months ended March 31, 2025, compared to 32 MMBoe for the previous quarter[106]. - Average sales price for crude oil increased by 1% to $70.90 per Bbl, while natural gas prices surged by 118% to $2.48 per Mcf compared to the previous quarter[119]. - During Q1 2025, the company drilled 22, completed 33, and turned to sales 47 net operated wells in the Permian Basin, compared to 36, 43, and 35 wells in Q1 2024[144]. Expenses and Costs - Lease operating expense increased by 1% to $174 million, with a 16% increase on a per Boe basis, primarily driven by fixed operating costs in the DJ Basin[124]. - Gathering, transportation, and processing expense decreased by 12% to $87 million, attributed to a 14% decrease in sales volumes[125]. - Severance and ad valorem taxes increased by 3% to $89 million, with a 20% increase on a per Boe basis due to updated mill levies[128]. - Depreciation, depletion, and amortization expense decreased by 18% to $445 million, primarily due to a 14% decrease in sales volumes[129]. - General and administrative expense increased by 8% to $57 million, with a 23% increase on a per Boe basis due to non-recurring severance charges[130]. Capital Expenditures and Investments - Capital expenditures for drilling and related activities totaled $495 million during the quarter[106]. - Capital expenditures for drilling and completion activities decreased by $97 million, reflecting a 5% reduction in the 2025 capital investment program compared to 2024[144]. - Cash proceeds from increased draws on the Credit Facility were used to pay $475 million for Vencer acquisition consideration and $281 million for oil and gas properties in the Permian Basin[146]. Shareholder Returns and Liquidity - The company repurchased approximately 1.5 million shares of common stock for a total of $71 million and paid cash dividends of $50 million[106]. - Free cash flow was prioritized for debt reduction, leading to a decrease in dividends declared and paid by $0.95 per share compared to Q1 2024, maintaining a base dividend of $0.50 per share quarterly[145]. - Liquidity as of March 31, 2025, was $1.5 billion, consisting of $20 million in cash and $1.4 billion in available borrowing capacity[136]. - The company had $1.1 billion outstanding under its Credit Facility as of March 31, 2025, with compliance to all financial covenants[160]. Market Conditions and Operational Flexibility - The average NYMEX WTI crude oil price for the quarter was $71.42, compared to $70.27 in the previous quarter[113]. - The Permian Basin crude oil differential was a premium to WTI, while the DJ Basin crude oil price included a higher-grade quality differential[115]. - The company recorded a cash settlement gain of $3 million from natural gas derivative contracts during the quarter[117]. - The company maintains operational flexibility to adjust capital spending in response to market conditions and external factors affecting commodity prices[109]. - The marketability of production is influenced by third-party infrastructure availability, which could impact pricing and production continuity[163].

Exhibit 99.1 Civitas Resources, Inc. Reports First Quarter 2025 Results Implementing cost optimization and operational efficiency initiatives to deliver over $100 million in annualized free cash flow DENVER — May 7, 2025 - Civitas Resources, Inc. (NYSE: CIVI) (the "Company" or "Civitas") today reported its first quarter 2025 financial and operating results. A webcast and conference call to review the Company's results is planned for 6:30 a.m. MT (8:30 a.m. ET) on Thursday, May 8, 2025. Participation details ...

LOS ANGELES, May 7, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Civitas Resources, Inc. ("Civitas" or "the Company") (NYSE: CIVI) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics ...

Core Viewpoint - Civitas Resources, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims that the company misled investors regarding its oil production capabilities and financial health during the specified class period [1][3]. Company Overview - Civitas Resources is an exploration and production company focused on acquiring, developing, and producing crude oil and natural gas, primarily from the Denver-Julesburg Basin in Colorado and the Permian Basin in Texas and New Mexico [2]. Allegations of the Lawsuit - The lawsuit claims that Civitas Resources made false or misleading statements, failing to disclose significant expected reductions in oil production for 2025, the need for additional acreage and development locations, and the potential for disruptive cost-cutting measures including workforce reductions [3]. - Specific allegations include: - A likely significant reduction in oil production due to natural declines and low TIL counts [3]. - The necessity to incur significant debt and sell corporate assets to maintain operations [3]. - Overstated business and financial prospects [3]. Financial Performance - On February 24, 2025, Civitas Resources reported fourth quarter and full year 2024 financial results, with revenue of $1.29 billion, missing estimates by $3.44 million, and non-GAAP earnings per share of $1.78, missing estimates by $0.21 [4]. - The company projected a year-over-year decline in oil production of approximately 4%, with an average production target of 150 to 155 MBbl/d for 2025 [4]. - Civitas announced a 10% workforce reduction and the termination of key executives, which contributed to an over 18% drop in stock price following the announcement [4].

Core Insights - A class action lawsuit has been filed against Civitas Resources, Inc. for allegedly misleading investors regarding its production capabilities and financial condition [1][2] Group 1: Allegations and Impact - The lawsuit claims that Civitas failed to disclose a likely significant reduction in oil production for 2025 due to declines following a production peak in the DJ Basin in Q4 2024 and a low TIL count at the end of 2024 [2] - It is alleged that increasing oil production would necessitate acquiring additional acreage and development locations, leading to significant debt and potential asset sales [2] - The company's financial condition reportedly required disruptive cost-reduction measures, including a significant workforce reduction, which overstated its business and financial prospects [2] - Following the revelation of these issues on February 24, 2025, Civitas's stock price dropped by $8.95 per share, over 18%, closing at $40.35 on February 25, 2025 [2] Group 2: Legal Proceedings - Shareholders interested in serving as lead plaintiffs must file their papers with the court by July 1, 2025 [3] - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [3] Group 3: Company Background - Civitas Resources, Inc. is an independent exploration and production company focused on crude oil and liquids-rich natural gas in the DJ Basin and the Permian Basin [1]

Core Viewpoint - A class action lawsuit has been filed against Civitas Resources, Inc. for allegedly making false and misleading statements regarding its oil production and financial condition during the Class Period from February 27, 2024, to February 24, 2025 [1][3]. Summary by Relevant Sections Lawsuit Details - The lawsuit was initiated by Bragar Eagel & Squire, P.C. on behalf of investors who acquired Civitas Resources securities during the specified Class Period [1]. - Investors have until July 1, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Allegations Against Civitas Resources - The lawsuit claims that Civitas Resources was likely to significantly reduce its oil production in 2025 due to declines following peak production at the DJ Basin in Q4 2024 and a low TIL count at the end of 2024 [3]. - It is alleged that increasing oil production would necessitate acquiring additional acreage and development locations, leading to significant debt and asset sales [3]. - The company’s financial condition purportedly required disruptive cost reduction measures, including a significant workforce reduction [3]. - Consequently, Civitas Resources' business and financial prospects, as well as operational capabilities, were allegedly overstated [3]. Financial Performance - On February 24, 2025, Civitas Resources reported Q4 and full-year 2024 financial results, with revenue of $1.29 billion, missing consensus estimates by $3.44 million [4]. - The non-GAAP earnings per share for the quarter were reported at $1.78, missing consensus estimates by $0.21 per share [4]. - The company projected oil production for 2025 to average between 150,000 and 155,000 barrels per day, reflecting a year-over-year decline of approximately 4% [4]. - Civitas Resources announced a $300 million transaction to expand its Permian Basin position, adding 19,000 net acres and approximately 130 future development locations [4]. - A divestment target of $300 million was also set to offset the costs of the aforementioned transaction [4]. - The company cited natural declines in the DJ Basin, severe winter weather, and unplanned processing downtime as factors affecting production volumes [4]. - A 10% workforce reduction was announced, along with the termination of the Chief Operating Officer and Chief Transformation Officer [4]. - Following these announcements, Civitas Resources' stock price fell by more than 18% [4].