お知らせ • Jun 03
Pomerantz Law Firm Announces the Filing of A Class Action Against Civitas Resources, Inc. and Certain Officers – Civi
Pomerantz LLP announces that a class action lawsuit has been filed against Civitas Resources, Inc. and certain officers. The class action, filed in the United States District Court for the District of New Jersey, and docketed under 25-cv- 03791, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Civitas securities between February 27, 2024 and February 24, 2025, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials. 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 Denver-Julesburg (“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 natural gas liquids. Accordingly, maintaining high volumes of oil production is critical to the Company’s ability to achieve revenue growth. Throughout 2024, Civitas maintained steady oil production and accelerated the number of the Company’s turned-in-lines (“TILs”)—i.e., newly drilled oil wells that have been designated as operational and added to the total number of wells in which Civitas owns a working interest—between the DJ and Permian Basins. However, unbeknownst to investors, oil production in the DJ Basin peaked in the fourth quarter of 2024 and, during the same period, Civitas began reducing the pace in which it turned in new lines. 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: (i) 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; (ii) 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; (iii) the Company’s financial condition would require it to implement disruptive cost-reduction measures including a significant workforce reduction; (iv) accordingly, Civitas’s business and/or financial prospects, as well as its operational capabilities, were overstated; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. On February 24, 2025, Civitas announced its financial results for the fourth quarter and full year 2024. Among other items, the Company reported 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 $0.21per 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, and interest expense—the cost incurred by an entity for borrowed funds—of $456.3 million for the year.