Form 4: Civitas Resources Director Carrie L. Hudak Acquires Deferred Stock Units

Director Carrie L. Hudak acquired 4,101 deferred stock units (DSUs) in Civitas Resources, Inc. on June 10, 2024.

Summary

• Carrie L. Hudak, a director of Civitas Resources, Inc., acquired 4,101 Deferred Stock Units (DSUs) on June 10, 2024.
• The DSUs were granted pursuant to the Civitas Resources, Inc. 2024 Long Term Incentive Plan.
• The DSUs will vest annually and become fully vested on the earlier of the day immediately preceding the date of the first annual meeting of stockholders following the grant date or the first anniversary of the grant date, subject to continued service on the Board of Directors.
• Following the transaction, Hudak directly owns 31,505 shares of Civitas Resources common stock.
• Hudak has granted power of attorney to Travis L. Counts, Adrian Milton, Geoffrey Storm, and Gabriel Lozano to handle SEC filings related to her transactions in Civitas Resources securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of DSUs by a director is generally a positive sign, indicating confidence in the company's future. However, it's a routine transaction and doesn't necessarily indicate a major shift in the company's prospects.

Positives

• The acquisition of DSUs by a director signals confidence in the company's future performance.
• The vesting schedule of the DSUs incentivizes continued service on the Board of Directors.

Future Outlook

The DSUs vest annually and will be fully vested by the first anniversary of the grant date or the day before the next annual stockholder meeting, contingent on continued board service.

Industry Context

Directors receiving stock-based compensation is a common practice in the oil and gas industry to align their interests with those of shareholders.

Comparison to Industry Standards

• Stock grants to board members are a typical component of compensation packages in the energy sector, aligning director interests with shareholder value.
• Companies like EOG Resources and Pioneer Natural Resources also utilize stock-based compensation for their directors.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder sentiment.
• The vesting schedule of the DSUs incentivizes continued service on the Board of Directors, which benefits all stakeholders.

Key Dates