Form 4: Civitas Resources Director Wouter T. van Kempen Receives Equity Grant

Civitas Resources, Inc. Director Wouter T. van Kempen 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 27,436 shares.

Summary

• Wouter T. van Kempen, 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 acquired at a price of $0, indicating a grant rather than a purchase.
• Following this transaction, Mr. van Kempen's direct beneficial ownership of Common Stock increased to 27,436 shares.
• The DSUs will vest annually and become 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, subject to his 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 interests with long-term shareholder value, though it is a routine compensation event and not indicative of extraordinary performance or strategic shifts.

Positives

• The grant of Deferred Stock Units aligns the director's interests with long-term shareholder value, as the value of the DSUs is tied to the company's stock performance.
• The transaction is part of a structured Long Term Incentive Plan, indicating a formal approach to executive and director compensation.

Future Outlook

The Deferred Stock Units granted to Director Wouter T. van Kempen 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 on the Board.

Management Comments

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

Industry Context

The granting of equity awards, such as Deferred Stock Units, to directors is a common practice across publicly traded companies, serving as a key component of director compensation and a mechanism to align their interests with those of shareholders.

Comparison to Industry Standards

• The grant of Deferred Stock Units as part of a long-term incentive plan is a standard compensation practice for directors in public companies, aiming to foster long-term commitment and align interests with shareholder returns.
• While specific comparable companies or projects are not detailed in this filing, this type of equity compensation is widely adopted across various industries as a governance best practice.

Corporate Governance

Related Party Transactions

• The grant of 10,512 Deferred Stock Units to Director Wouter T. van Kempen constitutes a transaction between the company and a related party (an insider), as part of his compensation package.

Stakeholder Impact

• Shareholders: The equity grant aligns the director's financial interests with the long-term performance of the company, potentially benefiting shareholders through improved governance and strategic decisions.

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, Insider Transaction, Deferred Stock Units, DSU, Equity Grant, Director Compensation, Stock Ownership, Long Term Incentive Plan