SM Energy Company (SM) and Civitas Resources, Inc. (CIVI) entered a merger agreement on November 3, 2025, to combine in a deal valued at $8.4 billion.
Civitas stockholders will receive 1.45 shares of SM Energy, representing an implied value of $30.29 per Civitas share, which is at a premium of 5.07% from the stock’s last close.
SM Energy stockholders will own about 48% of the new company, and Civitas stockholders will own about 52%. SM Energy will issue roughly 126.3 million shares of common stock to Civitas shareholders.
Civitas is an exploration and production company focused on acquiring, developing, and producing oil and natural gas from premier assets in the Permian Basin and the DJ Basin.
SM Energy is an energy company focused on the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids, with core operations in the Midland Basin and South Texas.
Last month, Bloomberg reported that Civitas was exploring a sale. The stock was trading at $31.89 when it was revealed that the oil and gas explorer was considering a tie-up with a similarly sized or larger peer.
The combined company’s enterprise value is expected to be approximately $12.8 billion, including the net debt of both companies.
The combined company will have a strong portfolio of about 823,000 net acres, centered around its core position in the Permian Basin.
After the transaction closes, expected in the first quarter of 2026, the company will continue to operate under the name SM Energy.
The Board will have 11 members, including six from SM Energy and five from Civitas. Julio Quintana will serve as the Non-Executive Chairman, and the combined company will be headquartered in Denver, Colorado.
SM Energy CEO Herb Vogel will serve as Chief Executive Officer of the combined company, and the previously announced transition to Beth McDonald as CEO remains on track.
Civitas was advised by J.P. Morgan on financial matters and by Kirkland & Ellis on legal matters. SM Energy received financial advice from Evercore and legal counsel from Gibson, Dunn & Crutcher.
SM Energy is paying 2.28 times EBITDA for Civitas.
For more information regarding this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Civitas Resources, Inc. (CIVI) by SM Energy Company (SM)
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– A spread history chart of the merger from announcement to completion or failure.
– Every proceeding event including the expiration of the HSR period, regulatory approvals and shareholder votes.
– News and SEC filings.
– A history of deal updates.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article