Civitas Resources(CIVI) GlobeNewswire News Room·2025-05-18 15:30Core 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 oil production 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 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 misled investors by failing to disclose significant expected reductions in oil production for 2025, which were attributed to declines following peak production in late 2024 and a low count of newly operational wells [3]. - It is claimed that increasing oil production would necessitate acquiring additional land and development locations, leading to significant debt and asset sales to cover acquisition costs [3]. - The lawsuit also states that Civitas Resources' financial condition would require disruptive cost-cutting measures, including a substantial workforce reduction, which would negatively impact its business and operational capabilities [3]. Financial Performance - On February 24, 2025, Civitas Resources reported fourth-quarter and full-year 2024 financial results, with revenue of 3.44 million, and non-GAAP earnings per share of 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 10% workforce reduction and the termination of key executives, which contributed to an over 18% drop in its stock price following the news [4].