Form 4: Civitas Resources Director Jeff Wojahn Receives Deferred Stock Unit Grant

Civitas Resources, Inc. Director Jeff E. Wojahn was granted 10,512 Deferred Stock Units (DSUs) as part of the company's 2024 Long Term Incentive Plan, increasing his total beneficial ownership to 48,847 shares.

Summary

• Jeff E. Wojahn, 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 a form of equity compensation.
• Following this transaction, Mr. Wojahn's beneficial ownership of Common Stock increased to 48,847 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. Wojahn's continued service on the Board of Directors.

Sentiment

Score: 7

Explanation: The grant of equity to a director is generally viewed positively as it aligns the director's financial interests with those of the shareholders, promoting long-term value creation. It is a routine compensation event rather than a significant market-moving announcement.

Positives

• The grant of Deferred Stock Units to a director aligns the interests of the director with those of the shareholders, as the value of the compensation is tied to the company's stock performance.
• The use of a Long Term Incentive Plan (LTIP) demonstrates a commitment to long-term performance and retention of key personnel.

Future Outlook

The Deferred Stock Units granted to Director Jeff E. Wojahn are subject to a vesting schedule, becoming fully vested 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, contingent on his continued service.

Industry Context

This Form 4 filing details a routine equity compensation grant to a director, which is a common practice across publicly traded companies in various industries, including the energy sector. Such grants are designed to align the interests of board members with long-term shareholder value creation.

Comparison to Industry Standards

• The grant of Deferred Stock Units (DSUs) as part of a Long Term Incentive Plan is a standard form of non-cash compensation for directors in public companies, comparable to practices at other energy companies like EOG Resources, Pioneer Natural Resources, or Diamondback Energy, which also utilize equity-based awards to compensate and incentivize their board members.
• The vesting schedule tied to continued service is typical for such awards, ensuring director commitment and retention.

Corporate Governance

Related Party Transactions

• The transaction involves the company granting equity compensation to a director, which is a related-party transaction. However, this is a standard and disclosed form of compensation for board members.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholders, potentially leading to better long-term decision-making.
• Employees: While not directly impacting employees, the existence of a Long Term Incentive Plan can signal a broader commitment to performance-based compensation 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.

Key Dates

Keywords

Civitas Resources, CIVI, Form 4, Deferred Stock Units, DSU, Equity Compensation, Director Compensation, Insider Transaction, Stock Grant, Long Term Incentive Plan