SM Energy Plans $750 Million Private Offering of Senior Notes Due 2034

SM Energy Announces $750 Million Offering of Senior Notes

SM Energy Company, a key player in the independent energy sector, revealed plans today to launch a private offering of $750 million in senior notes due in 2034. The announcement comes as part of the company's strategic efforts to manage its financial obligations and optimize its capital structure.

The impending offering, contingent on favorable market conditions, aims to raise capital for the purpose of repurchasing a significant portion of the company’s existing senior notes. Specifically, SM Energy intends to utilize the net proceeds from this offering in combination with cash reserves and potential borrowings from its revolving credit line. The goal is to buy back up to $750 million of its outstanding $1.35 billion in 8.375% senior notes maturing in 2028, as outlined in its offer dated March 4, 2026.

Structure of the Offering

The senior notes will not be registered under the Securities Act of 1933 or any applicable state securities laws. Consequently, these notes will only be available to sophisticated institutional buyers who meet specific criteria set forth under Rule 144A of the Securities Act, and they are also accessible to non-U.S. persons in accordance with Regulation S.

Prospective investors should be aware that this press release does not constitute an offer to sell or a solicitation to buy these securities. It is crucial for interested parties to recognize that these transactions must comply with relevant securities regulations, and no sales will occur in jurisdictions where such offers are prohibited.

Forward-Looking Statements

This announcement includes forward-looking statements that are subject to various risks and uncertainties, which could cause actual results to differ from those anticipated. Factors affecting the offering include market conditions and specific offering closure terms outlined in the company’s Confidential Offering Memorandum. Investors are encouraged to review these risks as detailed in SM Energy’s annual and quarterly reports filed with the SEC.

About SM Energy

SM Energy Company specializes in the acquisition, exploration, development, and production of oil and natural gas, particularly in the regions of Colorado, New Mexico, Texas, and Utah. With a strong focus on enhancing free cash flow and maintaining financial discipline, the company continues to evolve and adapt to the dynamic energy market. Relevant and timely information about its operations and strategies can be found on their official website.

Conclusion

The proposed offering of senior notes underscores SM Energy’s proactive stance in effectively managing its debt portfolio while enhancing financial flexibility. As the company navigates the complexities of the energy sector, stakeholders will be keenly observing the outcomes of this significant financial maneuver.