On Monday, November 3, SM Energy (SM) and Civitas Resources announced they are joining forces in a $12.8 billion all-stock merger that’s set to close in Q1 2026. SM Energy is an independent exploration and production (E&P) company focused on crude oil, natural gas, and NGLs in the Permian Basin in Texas and the Uinta Basin in Utah.
Similarly, Civitas is an independent E&P company focused on crude oil and liquids-rich natural gas in the Denver-Julesburg (DJ) Basin in Colorado as well as the Midland Basin and Delaware Basin in Texas/New Mexico. As mentioned in our Crude Oil Permian Report, Civitas made its debut in the Permian in 2023. Since its purchase of a portion of Tap Rock’s Delaware Basin assets and Hibernia’s Midland Basin assets for a combined $4.7 billion, they have become a notable name in the region.
This deal will create one of the largest independents in the Lower 48, combining about 832,000 net acres across the Permian and DJ Basins. The map below highlights Civitas pre-merger acreages in green and SM in navy. Once the dust settles, Civitas shareholders will own roughly 52% of the combined company, with SM shareholders at about 48%.
