Form 4: Civitas Resources CFO Marianella Foschi Reports Stock Transactions Following Performance Stock Unit Payout

Marianella Foschi, CFO & Treasurer of Civitas Resources, reports the acquisition and disposal of common stock following the vesting of performance stock units.

Summary

• On February 12, 2025, Marianella Foschi, CFO & Treasurer of Civitas Resources, reported transactions involving Civitas Resources common stock.
• These transactions are related to the vesting of performance stock units (PSUs) granted in February 2022, with a performance period from November 1, 2021, to December 31, 2024.
• The PSUs were based on both absolute total stockholder return (aTSR) and relative total stockholder return (rTSR).
• The Compensation Committee determined the payout for these PSUs on February 12, 2025.
• Foschi acquired 8,140 shares and 4,785 shares of common stock related to the aTSR and rTSR based PSUs respectively.
• 5,128 shares were disposed of to satisfy tax withholding obligations at a price of $51.58 per share.
• Following these transactions, Foschi beneficially owns 105,062 shares of Civitas Resources common stock.

Sentiment

Score: 6

Explanation: The document is a standard SEC filing detailing stock transactions related to executive compensation. It doesn't contain overtly positive or negative information, reflecting a neutral sentiment.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It reflects the outcome of performance-based compensation plans designed to align executive interests with shareholder returns.

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among publicly traded companies, particularly in the energy sector.
• Companies like EOG Resources, Pioneer Natural Resources, and Devon Energy also utilize performance stock units (PSUs) tied to metrics such as total shareholder return (TSR) and operational efficiency.
• The vesting schedules and performance periods for these PSUs typically range from one to three years, similar to the structure used by Civitas Resources.
• Tax withholding practices upon vesting of equity awards are also consistent across the industry.

Stakeholder Impact

• The vesting of performance stock units aligns executive compensation with shareholder returns, potentially incentivizing management to improve company performance.
• The tax-related stock disposal has a minor impact on the overall stock supply.

Key Dates