Shareholders Greenlight Civitas Resources Merger with SM Energy

Civitas Resources US17888H1032

The proposed merger between Civitas Resources and SM Energy has received overwhelming shareholder approval, clearing the final hurdle for the combination of the two U.S. energy producers. The transaction is scheduled for formal completion imminently.

• Deal Structure: An all-stock merger of equals.
• Closing Date: Anticipated for January 30, 2026.
• Exchange Ratio: Civitas Resources shareholders will receive 1.45 shares of SM Energy stock for each share they own.
• Shareholder Support: The vote saw 97.7% of the represented Civitas shares cast in favor.
• Index Impact: Civitas Resources will be removed from the S&P MidCap 400 index at the close of trading on January 30.

Unanimous Vote Paves the Way

At a special meeting held this week, the merger proposal passed with decisive support. Approximately 82.9% of Civitas's outstanding shares were represented at the vote, with nearly 98% of those voting to approve the deal. SM Energy stockholders concurrently approved the necessary issuance of new company shares to facilitate the transaction.

Upon closing, Civitas will operate as a wholly-owned subsidiary of SM Energy. The combined entity will conduct business under the SM Energy name. For current Civitas investors, shareholdings will be automatically converted based on the 1.45-for-1 exchange ratio.

Creating a Combined Shale Powerhouse

The merger unites the companies' assets in the Permian Basin and the DJ Basin, establishing a more substantial competitor in the North American shale sector. The future leadership, with Elizabeth A. McDonald slated to become CEO, is focusing on achieving significant scale efficiencies. A central objective is the realization of over $200 million in annual cost savings through operational synergies, though the market will watch closely for the timely execution of these goals.

The consolidation triggers an immediate change in a major stock index. S&P Dow Jones Indices has announced that Civitas Resources will be replaced in the S&P MidCap 400 by technology firm TTM Technologies, effective at the start of trading on the closing date.

The completion of the merger tomorrow will mark the end of Civitas Resources' independent public trading. The attention of investors will then shift to the integration process and the new, larger SM Energy's ability to deliver on its promised synergies.