Form 4: Civitas Resources Director Morris Clark Receives Significant Deferred Stock Unit Grant

Civitas Resources, Inc. Director Morris R. Clark was granted 10,512 Deferred Stock Units (DSUs) as part of the company's 2024 Long Term Incentive Plan, increasing his direct beneficial ownership to 43,317 shares.

Summary

• Morris R. Clark, 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 at a price of $0, indicating they are part of an equity compensation plan.
• Following this transaction, Mr. Clark's direct beneficial ownership of Civitas Resources common stock increased to 43,317 shares.
• The DSUs are granted pursuant to the Civitas Resources, Inc. 2024 Long Term Incentive Plan.
• These 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. Clark's continued service on the Board of Directors.

Sentiment

Score: 7

Explanation: The grant of DSUs to a director is a positive event as it aligns the director's interests with shareholders and is a standard form of compensation, indicating stability in governance and compensation practices. It does not, however, signal extraordinary performance or a significant strategic shift.

Positives

• The grant of Deferred Stock Units to a director aligns management's interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
• The increase in the director's beneficial ownership demonstrates continued commitment and confidence in the company's future.

Future Outlook

The Deferred Stock Units are subject to a vesting schedule, indicating a future commitment from the director and a long-term incentive structure tied to continued service and potential stock performance.

Management Comments

• The filing indicates that the DSUs were granted pursuant to the Civitas Resources, Inc. 2024 Long Term Incentive Plan, reflecting the company's established compensation strategy for its directors.

Industry Context

The granting of Deferred Stock Units or similar equity awards is a common practice in the energy and natural resources sector, as well as across publicly traded companies, to compensate directors and executives, align their interests with shareholders, and encourage long-term retention.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as a form of director compensation is a standard practice across various industries, including the energy sector, aligning with common corporate governance principles for executive and board remuneration.
• The vesting schedule tied to continued service is typical for such equity grants, ensuring directors remain engaged and committed to the company's long-term success.

Corporate Governance

Stakeholder Impact

• Shareholders: The DSU grant aligns the director's financial interests with those of shareholders, potentially leading to more shareholder-centric decision-making.
• Employees: While not directly impacting employees, the long-term incentive plan reflects the company's overall compensation philosophy, which may influence broader employee compensation strategies.

Next Steps

• The Deferred Stock Units will vest according to the specified schedule, contingent on Morris R. Clark's continued service on the Board of Directors.

Key Dates

Recommendation

Keywords

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