SM Energy and Civitas gain on $12.8 billion merger

Civitas Resources

03/11/2025 11:56

** Shares of U.S.-based oil and gas companies SM Energy SM.N up 3.6% at $21.65 and Civitas Resources CIVI.N gain 5.8% to $30.49 premarket

** SM says it will merge with peer CIVI in an all-stock deal, valuing the combined company at $12.8 billion, including debt

** Civitas shareholders will receive 1.45 shares of SM for each CIVI share, giving them about 52% ownership of the combined company

** This values Civitas at about $30.29 per share, a 5% premium to its closing price on October 31, and gives the deal an equity value of roughly $2.81 billion, according to Reuters calculations

** SM also beat Q3 profit estimates with an adjusted profit of $1.33 per share vs. estimates of $1.29 per share - data compiled by LSEG

** As of last close, SM down 46.1% YTD, while CIVI has shed 37.15%

(Reporting by Sumit Saha in Bengaluru)

((Sumit.Saha@thomsonreuters.com;))