Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, June 18, 2025 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Civitas Resources, Inc. (“Civitas Resources” or the “Company”) CIVI investors of a class action representing investors that bought securities between February 27, 2024 and February 24, 2025, inclusive (the “Class Period”). Civitas Resources investors have until July 1, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: [email protected], to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Case Allegations: Civitas Resources is an oil and gas exploration and production company focused on acquiring, developing, and producing crude oil and liquids-rich natural gas from assets in Colorado’s Denver-Julesburg (DJ) Basin and the Permian Basin in Texas and New Mexico. Throughout 2024, Civitas reportedly maintained steady oil production and increased the number of turned-in-lines (TILs) — newly drilled wells brought into operation — across both regions.
The class action lawsuit alleges that during the Class Period, Civitas Resources made false and/or misleading statements and failed to disclose key risks, including:
(i) Civitas was likely to significantly reduce oil production in 2025, primarily due to natural production declines in the DJ Basin after peaking in the fourth quarter of 2024 and a low number of new wells at year-end;
(ii) To sustain or increase production, Civitas would need to acquire additional land and drilling opportunities, which would require significant debt and asset sales to fund these acquisitions;
(iii) The company’s financial position would force it to implement cost-cutting measures, including major workforce reductions; and
(iv) As a result, Civitas Resources’ business outlook, financial health, and operational capacity were overstated.
According to the lawsuit, on February 24, 2025, Civitas Resources reported its fourth-quarter and full-year 2024 financial results, including revenue of $1.29 billion — falling short of analyst expectations by $3.44 million — and non-GAAP earnings per share of $1.78, missing projections by $0.21 per share. That same day, Civitas provided its 2025 guidance, forecasting average oil production between 150,000 and 155,000 barrels per day, representing an approximate 4% year-over-year decline. The company also announced a $300 million acquisition in the Permian Basin, adding 19,000 net acres and about 130 new development sites, alongside plans to divest $300 million in assets to balance the purchase.
Civitas attributed lower production levels to natural declines in the DJ Basin, a reduced number of new wells, severe winter weather, and unexpected third-party processing outages in early 2025. The company also revealed a 10% workforce reduction and the termination of its Chief Operating Officer and Chief Transformation Officer. Following these disclosures, Civitas Resources’ stock price dropped over 18%.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
310-692-8883
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