Civitas Resources(US:CIVI) Prnewswireยท2025-06-17 14:00Core Viewpoint - A class action lawsuit has been filed against Civitas Resources, Inc. and certain officers for alleged violations of federal securities laws during the Class Period from February 27, 2024, to February 24, 2025, seeking damages for misleading statements regarding the company's business and financial prospects [1][6]. Company Overview - Civitas Resources, Inc. is an independent exploration and production company focused on crude oil and liquids-rich natural gas in the Denver-Julesburg Basin in Colorado and the Permian Basin in Texas and New Mexico, owning a working interest in a net total of 530,200 acres as of December 31, 2024 [3]. Financial Performance - For the fourth quarter and full year 2024, Civitas reported revenue of $1.29 billion, missing consensus estimates by $3.44 million, and net income of $151.1 million, down from $302.9 million in the year-ago quarter [7]. - The company announced a 10% workforce reduction to solidify its low-cost structure and reported interest expenses of $456.3 million for the year [9]. Production and Operational Insights - Throughout 2024, Civitas maintained steady oil production but experienced a peak in the DJ Basin in Q4 2024, leading to a reduction in new operational wells [5]. - The company projected a decline in oil production for 2025, estimating an average of 150 to 155 thousand barrels per day, which represents a year-over-year decline of approximately 4% [8]. Market Reactions - Following the announcement of reduced production guidance and disappointing financial results, Civitas's stock price fell by $8.95 per share, or 18.15%, closing at $40.35 per share on February 25, 2025 [10]. - Analysts expressed concerns regarding the company's operational clarity and financial health, particularly in relation to its significant debt of over $5 billion [10].