According to the complaint, throughout the Class Period, Defendants failed to disclose that: (i) Civitas was highly likely to significantly reduce its oil production in 2025 due in part to declines after the production peak at the DJ Basin in the fourth quarter of 2024; (ii) increasing its oil production would require the Company to acquire additional acreage and development locations; (iii) the Company would need to implement disruptive cost-reduction measures.

On February 24, 2025, Civitas announced its Q4 and full-year 2024 financial results, which included revenue of $1.29 billion, missing consensus estimates by $3.44 million, and non-GAAP earnings per share of $1.78 for the quarter, missing consensus estimates by $0.21 per share. In addition, Civitas reported net income of $151.1 million, or $1.57 per share, compared with $302.9 million, or $3.23 per share, in the year-ago quarter.

Also on February 24, Civitas issued a press release outlining the Company’s 2025 outlook, which noted that, compared to Q4 2024, “lower volumes are primarily driven by the DJ Basin, due to natural declines following peak production in the fourth quarter.” In addition, Civitas announced a 10% reduction in its workforce across all levels.

Finally, the Company announced the termination of its Chief Operating Officer Hodge Walker and Chief Transformation Officer Jerome Kelly.

On this news, Civitas's stock price fell $8.95 per share, or 18%, to close at $40.35 per share on February 25, 2025.

Investors who purchased or acquired Civitas Resources securities between February 27, 2024 through February 24, 2025, may no later than July 1, 2025, seek to be appointed as a lead plaintiff representative of the class.