The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Civitas Resources, Inc. (“Civitas” or the “Company”) (NYSE: CIVI) securities between February 27, 2024 and February 24, 2025, inclusive (the “Class Period”). Civitas investors have until July 1, 2025 to file a lead plaintiff motion.

What Happened?

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, Civitas’ stock price fell $8.95, or 18.2%, to close at $40.35 per share on February 25, 2025, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Civitas was highly likely to significantly reduce its oil production in 2025 as a result of, inter alia, declines following the production peak at the DJ Basin in the fourth quarter of 2024 and a low TIL count at the end of 2024; (2) increasing its oil production would require the Company to acquire additional acreage and development locations, thereby incurring significant debt and causing the Company to sell corporate assets to offset its acquisition costs; (3) the Company’s financial condition would require it to implement disruptive cost reduction measures including a significant workforce reduction; (4) accordingly, Civitas’s business and/or financial prospects, as well as its operational capabilities, were overstated; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.