SM Energy announced it has completed its all stock merger with Civitas Resources following stockholder approvals at special meetings held this month. The combined company will keep the SM Energy Company name and continue trading on the New York Stock Exchange under the ticker “SM.”
The company said Beth McDonald has been appointed president and chief executive officer and has joined the board of directors, while Blake McKenna has been named executive vice president and chief operating officer. Julio Quintana will remain non-executive chairman.
SM Energy said the board has expanded to 11 members, with six representatives from SM Energy and five from Civitas. Board members listed by the company include Bart Brookman, Morris Clark, Carrie Fox, Billy Helms, Beth McDonald, Ramey Peru, Rose Robeson, Wouter van Kempen, Ashwin Venkatraman, and Howard Willard III, in addition to Quintana as chairman.
The company described the merged business as a top-10 U.S. independent oil-focused producer with a larger footprint across major shale basins, including a premier Permian position. Management said its near-term priorities include integrating the two companies, delivering an annual synergy target of $200 million to $300 million, and pursuing divestitures of at least $1.0 billion over the next year. SM Energy said it expects those steps to support higher free cash flow, a stronger balance sheet, and an updated return of capital framework it plans to outline with its 2026 operating plan.
KEY QUOTES
“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 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.”
Beth McDonald, President and Chief Executive Officer, SM Energy Company
