Form 4: Civitas Resources Director James Trimble Receives Deferred Stock Units Grant

Civitas Resources, Inc. Director James M. Trimble was granted 10,512 Deferred Stock Units (DSUs) as part of the company's 2024 Long Term Incentive Plan.

Summary

• James M. Trimble, 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 a compensation package rather than a direct purchase.
• Following this transaction, Mr. Trimble beneficially owns a total of 53,960 shares.
• The DSUs will vest annually and become fully vested 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, subject to Mr. Trimble's continued service on the Board of Directors.

Sentiment

Score: 7

Explanation: The grant of Deferred Stock Units to a director is generally a positive signal as it aligns the director's interests with long-term shareholder value. It is a routine compensation event.

Positives

• The grant of Deferred Stock Units to a director aligns management's interests with those of shareholders, as the value of the DSUs is tied to the company's stock performance.
• The transaction is part of a structured 2024 Long Term Incentive Plan, indicating a commitment to long-term performance incentives for key personnel.

Risks

• The vesting of the Deferred Stock Units is contingent upon the reporting person's continued service on the Board of Directors, meaning the DSUs could be forfeited if service ceases before vesting.

Future Outlook

The grant of Deferred Stock Units indicates a future alignment of the director's compensation with the company's long-term performance, with vesting scheduled for the future.

Management Comments

• "Represents Deferred Stock Units ('DSUs') granted pursuant to the Civitas Resources, Inc. 2024 Long Term Incentive Plan."
• "The DSUs shall vest annually and become fully vested on the earlier of (i) the day immediately preceding the date of the first annual meeting of stockholders following the grant date and (ii) the first anniversary of the grant date, in each case, subject to the Reporting Person's continued service on the Board of Directors of the Issuer through the applicable vesting date."

Industry Context

This is a routine insider compensation event common across publicly traded companies, particularly for directors, to incentivize long-term commitment and performance.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as part of a long-term incentive plan is a common practice in corporate compensation structures across various industries, including the energy sector, to align executive and director interests with shareholder value.
• The vesting conditions tied to continued service are standard for such equity awards.

Corporate Governance

Related Party Transactions

• The grant of Deferred Stock Units to James M. Trimble, a director, constitutes a related party transaction as it involves compensation from the company to an insider.

Stakeholder Impact

• Shareholders: Positive impact as the DSU grant aligns the director's financial interests with the company's long-term stock performance, potentially encouraging decisions that enhance shareholder value.

Next Steps

• Vesting of the 10,512 Deferred Stock Units for James M. Trimble, subject to continued service.

Key Dates

Keywords

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