Form 4: Civitas Resources Director Granted Over 10,000 Deferred Stock Units

Civitas Resources, Inc. Director Lloyd W. Helms Jr. was granted 10,512 Deferred Stock Units as part of the company's 2024 Long Term Incentive Plan.

Summary

• Lloyd W. Helms Jr., a Director of Civitas Resources, Inc. (CIVI), acquired 10,512 shares of Common Stock on June 4, 2025.
• These shares represent Deferred Stock Units (DSUs) granted under the Civitas Resources, Inc. 2024 Long Term Incentive Plan.
• The DSUs were granted at a price of $0, indicating they are part of an incentive compensation plan.
• Following this transaction, Mr. Helms Jr. beneficially owns a total of 12,096 shares directly.
• 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, contingent on continued service on the Board of Directors.

Sentiment

Score: 7

Explanation: The grant of DSUs to a director is generally a positive sign, aligning management interests with shareholders and indicating a structured compensation plan. It's a routine transaction for insider compensation and does not suggest any immediate negative implications.

Positives

• The grant of Deferred Stock Units aligns the director's interests with long-term shareholder value.
• The grant is part of a formal 2024 Long Term Incentive Plan, indicating a structured and transparent compensation framework.

Risks

• Vesting of the Deferred Stock Units is subject to the reporting person's continued service on the Board of Directors, meaning forfeiture if service ceases before the applicable vesting date.

Future Outlook

The vesting schedule for the Deferred Stock Units indicates future ownership changes contingent on continued service, aligning the director's incentives with the company's long-term performance and strategic objectives.

Management Comments

• The Deferred Stock Units were granted pursuant to the Civitas Resources, Inc. 2024 Long Term Incentive Plan.

Industry Context

Granting of equity-based compensation like Deferred Stock Units (DSUs) is a common practice in the energy and natural resources sector, where Civitas Resources operates. This method is widely used to incentivize and retain key management and directors, aligning their interests with long-term company performance and shareholder returns.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as part of an incentive plan is a standard practice for executive and director compensation across various industries, including the energy sector.
• Companies such as EOG Resources, Pioneer Natural Resources, and Diamondback Energy also commonly utilize similar equity-based compensation structures to align insider interests with shareholder value.
• The vesting conditions tied to continued service are typical for such grants, ensuring retention and commitment from board members and executives.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of equity-based compensation to a director further aligns their financial interests with the long-term performance and value creation for shareholders.
• Employees: No direct impact on general employees is mentioned in this specific filing.

Next Steps

• The Deferred Stock Units will vest annually, with full vesting occurring on the earlier of the day immediately preceding the first annual meeting of stockholders following the grant date or the first anniversary of the grant date.
• Continued service on the Board of Directors is required for the vesting of the DSUs.

Key Dates

Recommendation

Keywords

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