SM Energy (SM) Completes Merger with Civitas Resources

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

SM Energy Company (NYSE:SM) is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the United States.

SM Energy Company (NYSE:SM) announced on January 30 that it had closed its all-stock merger with Civitas Resources, creating a larger independent producer that will continue to trade under the SM Energy name. First announced in November 2025, the deal is valued at around $12.8 billion, including debt.

Following the merger, SM shareholders now hold 48% of the combined company, with the remaining 52% going to Civitas shareholders. The merged firm will hold about 823,000 net acres across the top U.S. shale basins, including Permian and Denver-Julesburg. The transaction is expected to save SM Energy Company (NYSE:SM) between $200 million and $300 million annually by reducing overhead and operating costs.

According to S&P Global, the merger is expected to help SM Energy Company (NYSE:SM) grow its total output by 133% YoY to 484,000 boepd in FY 2026, with production in the Permian Basin alone projected to jump by 186% YoY. The firm expects SM’s total revenue to more than double in 2026, rising 103% YoY to around $6.5 billion.

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

“Today’s close marks the start of our work together as one SM, a top 10 U.S. independent oil-focused producer, with a larger, complementary footprint across the highest‑return U.S. shale basins—including a premier Permian position. We are focused on effectively integrating the two companies to unlock additional free cash flow by achieving our previously announced annual synergy target of $200 to $300 million and executing our previously announced divestiture target of at least $1.0 billion over the next year. We expect these steps to further strengthen our balance sheet, accelerate our return of capital to stockholders, and drive considerable upside in our equity. We look forward to sharing our 2026 operating plan and our updated return of capital framework on our upcoming conference call in late February.”

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