US EditionDenver Oil Giants Merge in Deal Creating $12.8 Billion Company
The merger creates a top-10 U.S. shale producer with 823,000 net acres, targeting $1.4 billion free cash flow and $200 million annual cost synergies, boosting scale and capital efficiency.
- SM Energy Company and Civitas Resources, Inc. agreed on November 3, 2025 to an all-stock merger with an enterprise value of $12.8 billion, continuing under the SM Energy name.
- Amid a new wave of consolidation in upstream oil and gas, SM Energy expanded into Utah last year while Civitas Resources struggled and cut ties with its CEO in August, with Kimmeridge pushing for more industry consolidation.
- The companies agreed to issue approximately 126.3 million shares, and Civitas stockholders will receive 1.45 SM Energy shares per Civitas share with a combined Board of 11 members and Julio Quintana as Non-Executive Chairman.
- Management projects more than $1.4 billion in 2025 free cash flow and up to $300 million in annual synergies, with SM Energy shares falling 6% and Civitas shares holding steady in early Monday trading.
- The companies expect the transaction to close in the first quarter of next year, with the merged firm operating approximately 823,000 net acres, said Ben Dell.
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SM Energy is acquiring Civitas in $13 billion oil and gas merger of near equals in the Permian Basin
Oil and gas producers SM Energy and Civitas Resources will combine in a $12.8 billion merger of near equals that will expand SM as a major producer in the booming Permian Basin. The two Denver-based energy players said Nov. 3 they are combining forces as the oil and gas industry continues to consolidate, and the most prized assets are the needed inventory and scale to continue drilling wells for decades to come. The merger is the biggest U.S. oi…
SM Energy, Civitas Resources Announce $12.8 Billion Merger
SM Energy and Civitas Resources announced an all-stock merger valued at about $2.8 billion in equity, or $12.8 billion including debt, creating one of the largest independent U.S. shale producers by output and acreage. Bloomberg reported that under the agreement, Civitas shareholders will receive 1.45 shares of SM Energy for each share of Civitas they own, giving Civitas investors about 52% of the combined company and SM shareholders 48%. Accor…
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Oil & Gas 360SM ENERGY AND CIVITAS RESOURCES TO COMBINE IN $12.8 BILLION TRANSFORMATIONAL COMBINATION DELIVERING SUPERIOR STOCKHOLDER VALUE
Value-Enhancing Scale Premier portfolio across the highest-return U.S. shale basins drives significant free cash flow and enhanced stockholder value Pro forma...
SM Energy and Civitas Resources announce $12.8bn merger
SM Energy Company and Civitas Resources have agreed to merge in an all-stock transaction valued at approximately $12.8bn, including net debt. The merger will create a combined entity with an extensive portfolio of around 823,000 net acres, primarily focused on the Permian Basin. Under the terms of…
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