SM Energy (SM) Completes Merger with Civitas Resources

SM Energy Company (NYSE:SM) is included among the 12 Best Crude Oil Stocks to Buy arsenic Tensions Rise.

SM Energy Company (NYSE:SM) is an autarkic vigor institution focused connected the exploration, exploitation, development, acquisition, and accumulation of earthy state and crude lipid successful the United States.

SM Energy Company (NYSE:SM) announced connected January 30 that it had closed its all-stock merger with Civitas Resources, creating a larger autarkic shaper that volition proceed to commercialized nether the SM Energy name. First announced successful November 2025, the woody is valued astatine astir $12.8 billion, including debt.

Following the merger, SM shareholders present clasp 48% of the combined company, with the remaining 52% going to Civitas shareholders. The merged steadfast volition clasp astir 823,000 nett acres crossed the apical U.S. shale basins, including Permian and Denver-Julesburg. The transaction is expected to prevention SM Energy Company (NYSE:SM) betwixt $200 cardinal and $300 cardinal annually by reducing overhead and operating costs.

According to S&P Global, the merger is expected to assistance SM Energy Company (NYSE:SM) turn its full output by 133% YoY to 484,000 boepd successful FY 2026, with accumulation successful the Permian Basin unsocial projected to leap by 186% YoY. The steadfast expects SM’s full gross to much than treble successful 2026, rising 103% YoY to astir $6.5 billion.

Beth McDonald, President and CEO of SM Energy Company (NYSE:SM), commented:

“Today’s adjacent marks the commencement of our enactment unneurotic arsenic 1 SM, a apical 10 U.S. autarkic oil-focused producer, with a larger, complementary footprint crossed the highest‑return U.S. 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 to $300 cardinal and executing our antecedently announced divestiture people of astatine slightest $1.0 cardinal 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.”

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