SM Energy Co. Completes All‑Stock Merger with Civitas Resources and Strengthens Credit Capacity
SM Energy Co. (NYSE: SM), an independent energy producer focused on natural gas and crude oil in the United States, finalized its all‑stock merger with Civitas Resources, Inc. (NYSE: CIVI) on January 30, 2026. The transaction was approved by shareholders of both companies on January 27, 2026, with SM Energy stockholders voting 76.5 percent in favor and Civitas shareholders also approving the merger terms. The combined entity will continue to trade under the SM Energy ticker symbol.
The merger adds Civitas’s assets in the ArkLaTex, Gulf Coast, Mid‑Continent, Rocky Mountains, and Permian Basin regions to SM Energy’s existing operations, expanding the company’s production base and enhancing its portfolio of natural‑gas and oil fields. The closing of the deal is conditioned on customary regulatory approvals and other closing conditions, but the parties anticipate completion on January 30, 2026.
In a related development, SM Energy announced a fourth amendment to its credit agreement on January 29, 2026. The amendment increases the borrowing base to $5.0 billion and raises lender commitments to $2.5 billion. It also expands the bank group to 18 lenders, adding three new institutions, and extends the facility’s maturity to January 30, 2031. Management highlighted that the amendment is supported by expected divestiture proceeds and ongoing discussions with rating agencies, aiming to maintain investment‑grade metrics.
The credit facility amendment was reported by StockTitan, and the same information was corroborated by Investing.com. The amendment was executed with no outstanding borrowings under the facility at the time of closure, reinforcing SM Energy’s liquidity position as it integrates Civitas’s assets and prepares for future growth initiatives.
These two actions—merging with Civitas and enhancing its credit capacity—represent a strategic effort by SM Energy to consolidate its market position, broaden its geographic footprint, and secure financial flexibility for ongoing operations and potential future acquisitions.
