Form 4: Civitas Resources Executive Clayton A. Carrell Reports Acquisition of Common Stock and Performance Stock Units

Clayton A. Carrell, President & COO of Civitas Resources, reports acquiring common stock and performance stock units on May 7, 2025.

Summary

• On May 7, 2025, Clayton A. Carrell, President & COO of Civitas Resources, acquired 58,477 shares of common stock.
• These shares were acquired at a price of $0.
• Following the transaction, Carrell directly owns 58,477 shares of common stock.
• Carrell also acquired 64,632 performance stock units, which vest depending on Civitas Resources' total shareholder return between January 1, 2025, and December 31, 2027.
• The actual number of shares that may vest ranges from zero to 225% of the target number of shares.
• The performance stock units expire on December 31, 2027.
• The restricted stock units are scheduled to vest in three equal installments on May 7, 2026, May 7, 2027, and May 7, 2028.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing of stock ownership changes. The acquisition of shares by an executive is generally viewed as a positive, but it's not a major event.

Positives

• The acquisition of shares by a company executive can be seen as a positive sign, indicating confidence in the company's future performance.

Risks

• The vesting of performance stock units is contingent on the company's total shareholder return, which is subject to market risks and company performance.

Future Outlook

The vesting of performance stock units is tied to the company's total shareholder return over a three-year period, indicating a focus on long-term value creation.

Industry Context

Executive compensation packages often include stock and performance-based units to align management's interests with those of shareholders. This filing reflects that practice within Civitas Resources.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, particularly in the energy sector.
• Companies like ExxonMobil, Chevron, and ConocoPhillips also utilize stock options and performance-based equity awards to incentivize their executives.
• The specific terms of these awards, such as vesting schedules and performance metrics, can vary widely based on company size, performance goals, and industry practices.

Stakeholder Impact

• The acquisition of shares by an executive can have a minor positive impact on shareholder sentiment.

Key Dates

Keywords

Civitas Resources, Clayton A. Carrell, common stock, performance stock units, acquisition, beneficial ownership, Form 4, CIVI