Civitas and SM Energy agree $12.8bn merger
By Abigail Townsend
Date: Monday 03 Nov 2025
(Sharecast News) - SM Energy and Civitas Resources are to join forces in a $12.8bn deal, the US shale gas producers confirmed on Monday.
The merger will create a leading oil and gas company with around 823,000 acres spread across America's highest-return shale basins, including the Permian and Denver-Julesburg.
Wouter van Kempen, Civitas's interim chief executive, called the deal a "pivotal" moment for both companies.
"By combing our strong technical teams and complementary assets, we gain scale, sharpen our competitive edge and strengthen our ability to responsibly produce energy," he said.
Herb Vogel, chief executive of SM Energy, added: "This strategic combination creates a leading oil and gas company with enhanced scale, numerous value-adding synergies and significant free cash flow, riving superior value to stockholders."
Under the terms of the all-stock merger, one common share of Civitas will be exchanged for 1.45 shares of SM Energy's common stock, giving the combined entity an enterprise value of around $12.8bn, including debt.
Civitas will own around 52% of the new company once the deal completes, likely in the first quarter of 2026.
Vogel will become chief executive, before handing over to his planned successor, Civitas's current chief operating officer Beth McDonald.
Estimated pro-forma full-year 2025 free-cash flow is forecast to be more than $1.4bn, the firms said.
As at 1400 GMT, shares in Civitas had risen 4%, while SM Energy had put on 1%.
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