CIVI INVESTOR DEADLINE: Robbins Geller Rudman & Dowd LLP Announces that Civitas Resources, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

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 acquiring, developing, and producing crude oil and natural gas from its assets 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 was likely to significantly reduce its oil production in 2025 due to declines following peak production in the DJ Basin in Q4 2024 and a low TIL count at the end of 2024 [3]. - It is claimed that increasing oil production would necessitate acquiring additional acreage, leading to significant debt and asset sales to cover acquisition costs [3]. - The financial condition of Civitas Resources is said to require disruptive cost reduction measures, including a significant workforce reduction [3]. - The lawsuit asserts that the company's business and financial prospects were overstated [3]. Financial Performance - On February 24, 2025, Civitas Resources reported Q4 and full-year 2024 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 2025 oil production to average between 150,000 and 155,000 barrels per day, representing a year-over-year decline of approximately 4% [4]. - Civitas announced a $300 million transaction to expand its Permian Basin position, adding 19,000 net acres and approximately 130 future development locations, alongside a divestment target of $300 million to offset costs [4]. - A 10% workforce reduction was announced, along with the termination of key executives, which contributed to an over 18% drop in the company's stock price following the news [4].