A securities class action has been filed in the USDC — N.J. against Civitas Resources, Inc. (CIVI) (“Civitas” or the “Company”) on behalf of all persons and entities that purchased or otherwise acquired Civitas securities between February 27, 2024, and February 24, 2025, both dates inclusive (the “Class Period”).

Civitas is an independent exploration and production company focused on the acquisition, development and production of crude oil and liquids-rich natural gas from its assets in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico. As of December 31, 2024, the Company owned a working interest in a net total of 530,200 acres.

Civitas recognizes revenue from the sale of produced crude oil, natural gas, and NGL. Accordingly, maintaining high volumes of oil production is critical to the Company’s ability to achieve revenue growth.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose 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, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.

Civitas’s stock price fell $8.95 per share, or 18.15%, to close at $40.35 per share on February 25, 2025

If you purchased Civitas securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.