Form 4: Civitas Resources Director Carrie L. Hudak Receives Significant Equity Grant

Civitas Resources, Inc. Director Carrie L. Hudak was granted 10,512 Deferred Stock Units (DSUs) as part of the company's 2024 Long Term Incentive Plan, increasing her beneficial ownership to 42,017 shares.

Summary

• Carrie L. Hudak, a Director of Civitas Resources, Inc. (CIVI), acquired 10,512 shares of Common Stock in the form of Deferred Stock Units (DSUs) on June 4, 2025.
• The DSUs were granted pursuant to the Civitas Resources, Inc. 2024 Long Term Incentive Plan.
• Following this transaction, Ms. Hudak's total beneficial ownership of Common Stock stands at 42,017 shares.
• 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.
• Vesting is contingent upon Ms. Hudak's continued service on the Board of Directors of the Issuer through the applicable vesting date.

Sentiment

Score: 7

Explanation: The sentiment is positive as it indicates a standard, expected compensation event that aligns director interests with shareholders, without any negative implications or red flags.

Positives

• The grant of Deferred Stock Units to a director aligns the director's interests with those of the shareholders, promoting long-term value creation.
• The transaction is part of a pre-established 2024 Long Term Incentive Plan, indicating a structured approach to executive and director compensation.

Risks

• The vesting of the Deferred Stock Units is subject to the reporting person's continued service on the Board of Directors, meaning the shares are not immediately owned outright and can be forfeited if service ceases before vesting.

Future Outlook

The Deferred Stock Units are designed to vest annually, with full vesting occurring on the earlier of the day preceding the first annual stockholders meeting following the grant date or the first anniversary of the grant date, subject to continued board service.

Industry Context

The granting of equity awards like Deferred Stock Units to directors is a common practice across various industries, including the energy sector, to incentivize long-term commitment and align leadership interests with shareholder returns. This practice is a standard component of corporate governance and compensation strategies.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as a compensation mechanism for directors is a widely adopted practice in publicly traded companies, including those in the energy and resources sector, aligning with common corporate governance standards.
• While specific comparable companies or projects are not detailed in this filing, the structure of the DSU grant, including vesting conditions tied to continued service, is consistent with typical long-term incentive plans observed at companies like ExxonMobil, Chevron, or ConocoPhillips, which often utilize similar equity-based compensation for their non-executive directors to foster long-term alignment.

Corporate Governance

Related Party Transactions

• The acquisition of Deferred Stock Units by Director Carrie L. Hudak from Civitas Resources, Inc. constitutes a related party transaction, as it involves compensation provided by the company to a member of its Board of Directors.

Stakeholder Impact

• Shareholders: The equity grant aligns the director's financial interests with long-term shareholder value, potentially leading to more shareholder-centric decision-making.
• Employees: While not directly impacting employees, the long-term incentive plan for directors may reflect a broader compensation philosophy within the company.

Next Steps

• The Deferred Stock Units will vest annually, with full vesting occurring on the earlier of the day preceding the first annual meeting of stockholders following the grant date or the first anniversary of the grant date, subject to continued service.

Key Dates

Keywords

Civitas Resources, CIVI, Form 4, SEC filing, insider transaction, Deferred Stock Units, DSUs, equity grant, director compensation, long term incentive plan, beneficial ownership