Core Viewpoint - Civitas Resources, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding its financial health and operational capabilities during the class period from February 27, 2024, to February 24, 2025 [1][3]. Company Overview - Civitas Resources is an exploration and production company focused on crude oil and natural gas production, primarily operating in the Denver-Julesburg Basin in Colorado and the Permian Basin in Texas and New Mexico [2]. Allegations of the Lawsuit - The lawsuit alleges that Civitas Resources misled investors by failing to disclose significant expected reductions in oil production for 2025, which were attributed to natural declines in the DJ Basin and a low count of newly operational wells [3]. - It is claimed that increasing production would necessitate acquiring additional land and development locations, leading to significant debt and asset sales [3]. - The lawsuit also states that Civitas Resources would need to implement disruptive cost-cutting measures, including workforce reductions, which would negatively impact its 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 consensus 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 thousand barrels per day for 2025 [4]. - Civitas Resources announced a $300 million transaction to expand its Permian Basin position and a divestment target of $300 million to offset acquisition costs [4]. - The company also revealed a 10% workforce reduction and the termination of key executives, which led to an over 18% drop in stock price following the announcement [4].
CIVI INVESTOR ALERT: Civitas Resources, Inc. Investors with Substantial Losses Have Opportunity to Lead the Civitas Resources Class Action Lawsuit