SM Energy completes all-stock merger with Civitas

SM Energy Company has completed its all-stock merger with Civitas Resources, creating a combined entity that volition clasp the sanction SM Energy Company and beryllium headquartered successful Denver, Colorado, US.

The merger received shareholder support from some companies past month, pursuing the signing of a definitive statement successful November 2025 for a transaction valued astatine astir $12.8bn, which includes nett debt.

In accordance with the merger terms, each Civitas stock is exchanged for 1.45 SM Energy shares, resulting successful SM Energy issuing astir 126.3 cardinal caller shares of communal stock.

Following the merger, SM Energy shareholders volition ain astir 48% of the combined company, portion Civitas shareholders volition clasp astir 52%.

The merged entity's enactment squad volition see Beth McDonald arsenic president and CEO, and Blake McKenna arsenic enforcement vice-president and main operating serviceman (COO).

The Board of Directors comprises 11 members, six from SM Energy and 5 from Civitas.

The combined entity manages a portfolio of astir 823,000 nett acres with a important absorption connected the Permian Basin.

With expected escaped currency travel surpassing $1.4bn for the afloat twelvemonth 2025, the institution aims to supply sustained superior returns and broaden its concern entreaty done accrued marketplace capitalisation and liquidity.

The transaction received unanimous support from some boards and is expected to beryllium finalised successful the archetypal 4th of 2026, taxable to indispensable shareholder and regulatory approvals.

McDonald said: “Today's adjacent marks the commencement of our enactment unneurotic arsenic 1 SM, a apical 10 US autarkic oil-focused producer, with a larger, complementary footprint crossed the highest‑return US shale basins, including a premier Permian position.

“We are focused connected efficaciously integrating the 2 companies to unlock further escaped currency travel by achieving our antecedently announced yearly synergy people of $200–300m and executing our antecedently announced divestiture people of astatine slightest $1bn implicit the adjacent year.

“We expect these steps to further fortify our equilibrium sheet, accelerate our instrumentality of superior to stockholders and thrust sizeable upside successful our equity. We look guardant to sharing our 2026 operating program and our updated instrumentality of superior model connected our upcoming league telephone successful precocious February.”

"SM Energy completes all-stock merger with Civitas" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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