SM Energy Company and Civitas Resources are set to merge in a $12.8bn all-stock deal, creating a company with 823,000 net acres in the Permian Basin. Civitas shareholders will receive 1.45 shares of SM Energy stock per share. The merger is expected to close in Q1 2026 pending approvals.

The combined entity will have an enterprise value of $12.8bn, with SM Energy issuing 126.3 million shares. SM Energy CEO Herb Vogel praised Civitas for its achievements. Shareholders will hold 48% of the new company, with Civitas shareholders owning 52%.

The new company will operate under the SM Energy name, based in Denver, Colorado. A board of 11 members will be appointed, with Julio Quintana as chairman and Herb Vogel as CEO. The company aims to focus on US shale basins for cash flow and capital returns.

Advisors Evercore and Gibson, Dunn & Crutcher aided SM Energy, while JP Morgan and Kirkland & Ellis assisted Civitas in the transaction. Civitas interim CEO Wouter van Kempen highlighted the merger’s potential for enhanced shareholder value and energy production.

The merger between SM Energy and Civitas Resources is set to create a leading oil and gas company with a focus on the Permian Basin. The deal, valued at $12.8bn, will result in a combined entity with substantial assets and operational excellence. Shareholders are expected to benefit from increased value and synergies.

Read more at Yahoo Finance: SM Energy and Civitas Resources announce $12.8bn merger