Stockholders Approve Merger Between SM Energy and Civitas Resources: A Transformative Step

Shareholders Back Merger of SM Energy and Civitas Resources

On January 27, 2026, SM Energy Company (NYSE: SM) and Civitas Resources, Inc. (NYSE: CIVI) jointly announced a landmark decision following their merger proposal. Both companies' stockholders overwhelmingly supported the merger, a pivotal step anticipated to be finalized by January 30, 2026, pending customary closing conditions.

During the special meeting held for SM Energy stockholders, around 76.5% of shares were represented, with an impressive 99.1% in favor of issuing common stock to Civitas shareholders, and roughly 98.6% supporting an amendment to increase authorized shares.

Similarly, the Civitas stockholders showed strong endorsement, with 82.9% of shares represented, and approximately 97.7% voting for the merger agreement. The final voting results from both special meetings will be officially filed with the U.S. Securities and Exchange Commission (SEC) by each company.

Herb Vogel, CEO of SM Energy, expressed that this overwhelming voter approval reflects a robust endorsement of the merger's potential. He remarked, “This combination unites two highly complementary organizations, setting the stage for the creation of a leading oil and gas entity with significant scale and premium assets. Our focus remains on generating substantial free cash flow and delivering exceptional long-term value to our shareholders.”

In a parallel statement, Wouter van Kempen, Interim CEO of Civitas, stated that this merger integrates two top-tier operators, enhancing both companies’ positions in the most lucrative U.S. shale regions. He highlighted the anticipated synergies and cash flow benefits that will better position the merged entity for sustained growth and value creation across various market cycles.

About SM Energy and Civitas Resources

SM Energy operates primarily in Texas and Utah, engaging in the acquisition, exploration, development, and production of crude oil and natural gas. The company’s strategic focus and commitment to maintaining performance excellence position it well amidst industry challenges.

Civitas Resources is distinguished for its strong portfolio in the Permian Basin and DJ Basin. The company specializes in extracting crude oil and natural gas, ensuring it remains a key player in the U.S. energy market.

Both companies are optimistic about the merger's potential to maximize their competitive edge, with expectations set on creating a powerhouse in the oil and gas sector. The combined resources and expertise will enhance their operational efficiencies, creating robust platforms for future advancements, regardless of market fluctuations.

Conclusion

The merger of SM Energy and Civitas Resources signals a significant shift in the energy landscape, driven by shareholder confidence and a shared vision for growth. As the industry adapts to evolving demands and fluctuating markets, this partnership aims to reveal new avenues for innovation and sustainability in energy production.

Investors and stakeholders are encouraged to stay tuned for further developments, as both companies prepare to transition into a new era of collaborative strength and shared success in the oil and gas sector.